DIOA has produced an excel spreadsheet that allows you to determine the after tax return on your investment in your own home under your assumptions concerning the future of growth, interest, equivalent rentals and outgoings.

So the greatest number of people can use it , it is published as Excel version 97.  Click here to download.

Enter your situation in the magenta (remember "magenta for enta") * fields. Hover over the cells to read comments and explanations of the inputs.

The result shown on the spreadsheet is the after tax return you will achieve on funds invested in owner occupied housing and the equivalent pre tax return.

You can invoke the sensitivity analysis button  to see how the after tax return changes with the assumptions. Before you see the sensitivity analysisi, you  will see a few important notes.  You can change the sensitivity analysis by changing magenta fields in the sensitivity tables.

Remember, even if you consider owner occupied housing a good investment, you cannot eat a house and it is very hard to sell part of it. So you need to diversify into other investments.

Superannuation, particularly employer or industry sponsored, remains a good investment especially if it is accessed by salary sacrifice. But you can't access superannuation until retirement so you need some other investments for the medium term.

Residential investments that are not owner occupied have no tax protection and are therefore less attractive than owner occupied residences. So other investments  have a place in your portfolio.

Like all financial models it is no better than its assumptions and they are your responsibility,

You are invited to download it,  use it as often as you want and, subject to the copyright notice, distribute it as widely as you wish. 

If you find it useful, please make sure you add it to your favourites.

* "Magenta for enta" is a convention that we find very useful on spreadsheets and recommend others use it.   If you do use "magenta for enta" please try to associate it with www.DiscountInvestment.com.au so that you don't forget where you can avoid the tyranny of commissions.