Are you looking to buy your next property, refinance existing properties or just want to know your current LVR across your complete portfolio?
Our Borrowing Power Calculator located on the property tank dashboard enables a better understanding of your available cash, borrowing capacity and even average interest rates to enable well-informed borrowing choices.
On the dashboard the Borrowing Power Calculator displays a summary of key information to consider when making financial decisions, your Net Income Surplus and Net Surplus Ratio, however there's much more to see.
To open the full Borrowing power report select the 'Open Report' button located in the top right hand corner of the widget.
You will then see the full report populated by property and forecast data available in TaxTank. You can also edit the report to add additional information like proposed property loans and rental incomes amongst other things.
Borrowing Power Report Explained
By default we will include all properties into the report, however you can use the filter in the top left corner to unselect any properties you would like to exclude.
The next step is to review and edit the relevant amounts that display in the header. The amounts are used in conjunction with the selected property data to calculate bot the Net Income Surplus and Net Surplus Ratio. To do this select the 'Edit' button, make any relevant changes, and then select the 'Save' button.
From this popup you can also select the 'Reset' button to clear any manually added data and reinstate any forecast amounts in TaxTank.
The following fields are editable:
Net monthly rent (Proposed new property) = The proposed rental income less rental expenses
Spouse net wages or salary (Incl. bonuses) = Your spouses monthly income + bonuses less tax.
Other liabilities (Ie. credit cards or personal loans repayments) = The sum of any other monthly repayment obligations.
My net wages or salary (Incl. bonuses) = Your monthly income + bonuses - tax.
Monthly Loan repayments (Proposed new property)Monthly living expenses = the monthly loan obligation of the proposed new property.
Monthly living expenses = the sum of monthly repayments for the following Household Expenditure Measure (HEM) categories:
Groceries
Recreation and Entertainment
Clothing and Personal Care - clothing, shoes, hair cuts, cosmetics, beautician services, etc
Telephone, Internet, Pay TV - covers phone, mobile phone, Internet and streaming services such as Netflix, Spotify, etc
Transport - parking, tools, petrol, maintenance, rego, car insurance
Primary Residence Costs if the property has been excluded from the report) - rates, repairs, maintenance, utilities.
Childcare - costs of childcare including daycare and before and after school care.
Pet Care - including pet insurance
Health Insurance
Medical and Health- medications, treatments etc
Sickness, Accident and Life Insurance
Public or Government Education
Higher Education and Vocational Training
Private School Education and Tutoring
Child and Spouse Maintenance
Other Regular and Recurring Expenses - includes voluntary super contributions, memberships etc
Tip - Use the budgeting tool to capture monthly living expenses
When allocating from bank feeds use the personal categories to track your actual spends. You can then view the transaction report, or better still, set the relevant categories as budget items to monitor your actual spends. To learn more about the budgeting tool check out article How do I add or edit a budget?
Want to learn more about the difference between Net Income Surplus and Net Surplus Ratio, and the formulas used in TaxTank? Check out the related article How does the Property Borrowing Power calculator work?