Property Affordability - Can I really afford it?

Anyone can work out if they can afford to put down the required down payment to purchase a property, but it doesn't stop there. There are many factors ranging from rental yields to fluctuations in borrowing rates. Can I really afford your next purchase?

My Property Tools - Affordability Calculator: Can I afford it?

As with any investment, there are costs associated with it. With properties, there are many on-going costs you need to be aware of. The idea behind our affordability calculator is to allow users to quickly work out if you have enough affordability power to maintain your investment property.

Getting Started

The calculator is preset with some default values that we have estimated based on a typical investment property in New South Wales, Australia. The default interest rate is manually managed by our staff to be roughly what you'd expect to get from a typical lender today.

At the bottom of the screen in the summary bar, you will see a bolded green/red dollar value. That figure is our best estimate of your affordability, for instance, if the figure is $95.96, it means as long as you can afford to pay $95.96 per week, you can afford to maintain this property.

Scrolling down your screen, you will see the expenses section. This is where you can customise your expenses for this property. You may also wish to add new expenses as well. Updating any textbox in this calculator will instantly update your affordability stat in the summary bar.

Next is the risk analysis table. This table tells you what your affordability stat will be like when interest rate changes.

Lastly, the accounting table displays when you have indicated this is an investment property. In this table, you are able to specify your rental income and total estimated depreciation expenses. This table shows you a detailed summary of your property's performance.

Property Information

Field Description
Interest Only Not sure whether you want to you paying interest + principal or interest only? You will instantly see the different by checking/unchecking this box. The caluclator recomputes your repayments which affects your affordability stat and risk exposure.
Property Type Specify whether this purchase is a house or an apartment
Purchase Price The value of your purchase.

Loan to Value Ratio is the proportion of money you borrow for a home loan compared to the value of the property.

For example, the loan amount at a LVR of 80 for a property priced at $600,000 is $480,000.

Interest Rate The interest rate of your loan. The default value is manually managed by our staff, it is a close estimate of what you'd get today from your typical home loan.
Years Amortization period of your loan.
Frequency Loan payment frequency.
This purchase is for investment purposes Checking this indicates this property is an investment, hence, the calculator assumes you will receive rental income.


When you first enter the calculator, you will see that we have attempted to estimate some of the most common expenses related to your property. The assumed payment occurence for each expense is indicated by where the textbox appears. Updating an expense amount will automatically calculate the average amount for the expense in other frequencies.

You may also wish to add any custom expense for your property.

Expense breakdown

The pie chart summarises where your expenses are being paid to. This aims to let you be aware of your major expenses so you can focus on them to reduce the risk of your largest expenses overshooting.

Risk Analysis

This table tells you what happens to your affordability when interest rate fluctuates. This table assumes your rental income and expenses other than your interest on mortgage changes. Here you can quickly see a snapshot of your affordability for different frequencies - week, fortnight, month, quarter and yearly.

The Accounting

This table appears when you have indicated this is an investment property. Here you can specify your rental income and total estimated depreciation expense. We have also attempted to work out your after tax net gain or loss will be for different frequenices.


If you still haven't seen our affordability calculator, why not head there and check it out?