Financials and forecasts
What is the forecast annual income?
The forecast annual income is the current gross rent being achieved (if the property is untenanted then expected market rent will be used) less known monthly costs. Where a cost is not billed monthly it will be accrued.
What costs are not included in the forecast annual income?
Costs that can not be predicted are not included. Examples of these include tenant finding fees, maintenance costs and capital expenditure.
What happens when an unexpected expense is incurred?
If an unexpected expense is incurred then it will be deducted from the rent received, resulting in a lower than forecasted monthly distribution. If the rent is insufficient to cover the expense then the contingency balance will be used to pay it.
Fixed costs & contingency (FCC)
These are the upfront costs involved with the initial purchase of the property and comprise, stamp duty, legal fees, company set up fees, legal fees, Assetz Exchange arrangement fees and the initial contingency balance. These costs are recoverable by the investor if the investment is sold on the Exchange.
Income, expenses and contingency breakdown
Each property has a full breakdown of all income and expenses by month available on the property details page. This also includes movements in the contingency balance.