To add a new Investment Property asset, click the CREATE NEW ASSETS button.

The ADD ASSET page will then be displayed. 

Select the "Investment Property" Asset Type from the dropdown menu.

After selecting the Asset Type, click NEXT. 

The ADD ASSET DETAILS screen will then open.  This screen contains all of the details relevant to the Investment Property asset.

Ensure all fields with REQ next to the title are completed. 

Helpful Hints on Investment Property Data Entry

1.      Asset Name

Enter an free text name of up to 40 characters, such as "Investment Property - Perth", or something identifiable.

Depending upon how you entered the data for the client, the drop down for owner will include the name of each member and the option "Joint"

The option you choose here will have an impact for modelling.  For example if the asset is owned by one member and not the other, any associated funding bank account will have to be owned by the same owner.  This is to ensure that all tax calculations and investment income is attributed correctly.

You can enter the NET yield for the property here, if you wish, or change it to zero and enter the relevant income and expenditure into the Investment Property Income and Expenditure fields below the ADD button after you add the Asset.

Click ADD when completed to save the details.

SOURCES OF CAPITAL   /      CURRENT DEBT FUNDING

By scrolling downwards, AFTER you have clicked ADD to save the Asset Details, you will see the Current Debt Funding Details and the various Income and Expenditure items relevant to an Investment Property.    This is where you link the loan account you earlier created on the Accounts screen to the Asset.  By doing this, if the asset is ever sold, the system will automatically pay out the associated debt upon the sale.      

INVESTMENT PROPERTY INCOME AND EXPENSES

You also need to include here any Income and Expenditure items that you have not previously entered.  

Note:  If you added a NET Yield in section 8 above, you will not need to enter the income and expenses below the Sources of Capital below.  You only need to enther EITHER the Net Yield, OR the Income and Expenditure separately, NOT BOTH.

IMPORTANT NOTE:  

By incorporating the income and expenditure within the Asset, as below, you do not need to remember to delete ad-hoc expenses from other areas if the property is sold.   If the property is sold, all of the items within this Asset will cease.

Helpful Hints on Investment Property Data Entry (continued)

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9.      Current Funding Contribution / Source of Capital

For an existing Investment Property, enter the Loan Balance, and the Loan Account that is associated with the Asset.  

If the asset is already owned, there is no need to enter details of any Cash which was used to purchase the property.

Note:  The question "Keep?" simply means do you want to keep the entry.  If you want to remove the entry, click on the dropdown menu and select "No".    You may have noticed there is no "BIN"icon on this screen.

IF the Investment Property purchase is a proposed purchase, you need to ensure that all sources of capital are listed, with the relevant account.  You need to ensure that the Sources of Capital equal the purchase cost 

eg:  If you are purchasing an Investment Property at a cost of $500,000, and you will be contributing $100,000 from Cash, and $400,000 from an Investment Line of Credit, you need to include those two funding sources.

If you have not included the net yield on the investment property in the Rate Yield mentioned in 8 above, you can enter it here.  Click ADD, and complete each of the fields.  Here you can specify the actual rent (eg $500 per week).  You can also add in the inflation rate you wish to use.  Choose from the current Inflation rate, the current AWOTE rate, or you can Nominate the specific rate you would like to use.  

Click UPDATE when completed.

11.      Assets Deduct Expense

If you have not included the tax deductible expenses as part of the Rate Yield mentioned in 8 above, you can enter them here.  Click ADD, and complete each of the fields.  

Here you can specify the actual expenditure per week / month / or annual. You can also add in the inflation rate you wish to use.  Choose from the current Inflation rate, the current AWOTE rate, or you can Nominate the specific rate you would like to use.    

You also need to specify which account the expenditure is to be paid from.

Click UPDATE when completed. 

12.      Assets Capital Expense

You can also incorporate any Capital Expediture planned for the property.  

Given that some capital expenditure may not add the same value to the property as it costs, you can incorporate the amount of value added from the capital expense, and the associated depreciation that can be claimed.  You also need to nominate the account the expense will be paid from.

13.      Assets Depreciation

You can also add the Property Depreciation, if you have the details in relation to this tax deduction.