Cash Flow Analysis

Why Cash Flow Analysis?

The saying “cash is king” or “cash flow is king” is a concise summary of business wisdom. Cash flow is the life blood of a healthy business to keep normal operation. Once there is any issue with cash flow, the business will soon experience difficulties and may even go bankruptcy. Likewise cash flow is of critical importance to property investment, and to a certain degree, cash flow is the factor leading to success or failure of an investment. Even if you have done your research and identified suburbs of high capital growth, cash flow will determine whether you can hold the property till the opportune time to sell and maximise return on investment.

This chart illustrates the change of cash flow if interest rate increases by 1%. What is your cash flow like if interest rate increase in the future? Knowing your future cash flow, you can make the best use of your cash and increase the probability of successful property investment.

How Will Insight Cash Flow Analysis Benefit You?

Insight cash flow analysis is an analysis tool tailor-made for investors and professionals of Australian property investment. It works on modern browsers across platforms, visualises your data and helps you to gain insights in property investment. It prompts you to:

Research

  • capital growth potential
  • expected rent
  • holding cost
  • vacancy rate
  • measurement of investment performance

Calculate

  • rental income and expenses
  • before and after tax cash flow for the following 10-20 years
  • internal rate of return (IRR/MIRR)
  • net present value (NPV) of property investment
  • stamp duty
  • estimation of income tax
  • estimation of land tax
  • estimation of depreciation

Compare

  • comparing cash flow and rate of return of property investment opportunities
  • visual chart of IRR/MIRR with varying holding time

If you already have a portfolio of investment properties, Insight helps you to keep a record of income and expenses, and track the growth of your portfolio. The data stored online is backed up regularly for quick retrieval and recovery. easy_charts

Why Should You Choose Insight for Cash Flow Analysis?

Insight Cash Flow Analysis enables you to see your data. It is unique in the following ways.

Simple

Insight Cash Flow Analysis works like a spreadsheet, and is very simple to use. You will learn how to use it in a few minutes without reading a manual. It comes with pre-filled templates and assumptions so you will see the results with a few mouse clicks without much typing. If you would like to dive into details, the flexible settings allow you to perform different scenario analysis with options not offered by any other cash flow analysis softwares.

For investment properties listed on VIPP website, a comprehensive cash flow analysis is only a few clicks away.

Easy

Insight Cash Flow Analysis is designed to make investment analysis easy. It turns boring data into graphical charts that is easy to understand. You may simply change the assumptions and see the results immediately on the same screen.

Insight Cash Flow Analysis works on modern browsers across platforms (Windows, Mac, Android, IOS). You can access Insight Cash Flow Analysis using your favourite personal computing device, from anywhere (where such devices are allowed to use). It works offline without internet connection too.

Extendible

Insight is more than a cash flow analysis tool. It can be extended to meet your unique investment and business needs. As a property investor, you may use Insight Cash Flow Analysis to perform scenario analysis and look for your next investment property, you may also use Insight to manage your existing investment properties.

Insight is designed to enable you to easily exchange data with your appointed professionals. You may use Insight to keep a record of income and expenses of up to 100 investment properties. You can appoint an assistant to input data for you to see the consolidated reports. The consolidated profit and loss report saves time for both you and your accountant at tax time. You can optionally grant access to your accountant and financial planner so they can act on your information directly. You are in absolute control of your information.

Apart from Cash Flow Analysis, What Else Can Insight be Used for?

Insight is a platform of property investment information, and cash flow analysis is just one of the tools provided on Insight platform. More sophisticated calculators will be added to the platform for property investors and professionals. Some calculators are for professionals only.

In addition to property investors, professionals (such as financial planners and mortgage brokers) may use Insight to keep track of clients’ portfolio and perform Cash Flow Analysis for their clients while they look for the next investment property. Insight can be customised to meet the unique needs of businesses and professionals to provide better services to clients, more efficiently.

Cash Flow Analysis and Protection of Privacy

We understand cash flow analysis involves your sensitive personal information such as income and investment portfolio, and we strive to protect your privacy. It is optional for you to store your personal information such as income and investment portfolio in Insight database. If you do store such information, we will keep such information strictly confidential and will not disclose to any third party without your consent, unless we are obliged to do so by law.

You can still perform cash flow analysis by using Insight offline, and save the analysis result as pdf files. Professionals performing cash flow analysis for clients can use code to represent clients and protect clients’ personal information.

Cash Flow Analysis and Information Security

We understand the sensitive nature of investment property cash flow analysis, record keeping and reporting, and have taken appropriate measures to safeguard your information. Below is an overview of our security measures.

  • SSL encryption. All your information is encrypted before transmitting over the internet.
  • Double password protection. Members need to provide a password to login and access members only areas, and a unique private key is assigned to each record for enhanced protection. Members can only access their own records.
  • Regular Backup. Your information is regularly backed up and stored in a safe place for quick recovery.

As a summary, Insight is a platform providing tools to property investors and professionals, and cash flow analysis is one of such tools. Insight Cash Flow Analysis helps you to research, calculate and compare investment properties. It is unique in enabling you to see data in a simple and easy way. You may also use the extendible platform to keep records and track your portfolio’s growth.

What do you think? Where would you like to go from here?

 

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