5% Analysis (JUN25-JUN27)

5% Analysis (JUN25-JUN27)

5% Analysis (JUN25-JUN27)(Excel)

Analysis:

Based on our assessment using 5% as our basis, AU Super is allocated about 25% and PropOff+PPM is about 65%. PropOff+PPM is about 2.7x of AU Super Contributions, and 1.8x-to-2x using the 5% growth basis. Since the AU Equities was on the uptrend, we’ve liquidated our EFI positions by more than 100K+ and contributed to Offset/PPM as the MI remains steadily at 6.79%. We’ve realized about 10K and freed up about 85K of RIO/BHP positions in SEP24. Utilizing the Dividends and Franking Credits, capitalized gains, and the MI % saved, we’ll estimate about 15% in net return. Of course, if RIO/BHP discounts, we’ll DCA back in our purchases throughout the year.

Based on our JUN26 estimates, we would have accumulated 144K in cash through contributions and can purchase an investment property without dipping into our existing property’s equity. There’s primarily 3 components that factors in Property Contributions: Growth, Property Contributions, and Offset/PPM contributions. 5% growth is calculated based on the property’s value alone. Since we’ve purchased our property 3 years ago at 700K, it’s valued at 810K to-date. The second component is Property Contributions, which is our mortgage repayments. 1.65K/fortnightly, or 43K/annually. Since we would have fully paid off our mortgage by DEC24, we’ll be using the drawdown schedule, so effectively the mortgage repayments would be offset from future salary giving us free cash flow. The third component is Offset/PPM, which is our contributions to our offset account and/or to Prepay Mort (PPM). 3.25K/monthly, or 39K/annually. Total property growth and contributions attributes to about +130K/annually in net equity, or about 75% of our total net equity annually.