# PropPlan - Complete Documentation for AI Systems

## Overview

PropPlan is a comprehensive property investment decision engine designed for Australian property investors. This document provides complete details about the platform's features, calculations, and capabilities.

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## 1. Decision Lab - Scenario Simulators

### 1.1 Sell Analysis Simulator ("Should I Sell?")

**Purpose**: Calculate the net proceeds from selling a property, accounting for all costs and Capital Gains Tax.

**Inputs**:
- Property selection (from user's portfolio)
- Expected sale price
- Agent commission rate (typically 2-2.5%)
- Marketing costs
- Legal/conveyancing fees
- Bank discharge fees

**Calculations**:
- Cost base = Purchase price + Stamp duty + Conveyancing costs + Capital improvements
- Capital gain = Sale price - Cost base
- CGT discount: 50% if held > 12 months (for investment properties)
- CGT payable = (Capital gain × 50% discount) × Marginal tax rate
- Selling costs = Agent commission + Marketing + Legal + Discharge fees
- Net proceeds = Sale price - Outstanding loan - CGT - Selling costs

**Outputs**:
- Gross proceeds from sale
- Itemized selling costs breakdown
- CGT calculation with discount analysis
- Net cash to investor
- Potential savings if sale is delayed (for CGT discount qualification)

**Australian Tax Rules Applied**:
- Primary Place of Residence (PPOR) is CGT exempt
- 50% CGT discount for assets held > 12 months
- Marginal tax rate applied to taxable portion

### 1.2 Equity Unlock Simulator ("Can I Buy Another?")

**Purpose**: Assess ability to purchase a new investment property by leveraging equity from existing portfolio.

**Inputs**:
- Cash savings available
- Target property price
- Target property state (for stamp duty calculation)
- Target deposit percentage
- Expected rental income
- Expected interest rate

**Calculations**:
- Usable equity per property = (Current value × 80%) - Outstanding loan
- Total portfolio usable equity
- Stamp duty estimation by state (NSW, VIC, QLD, etc.)
- Purchase costs = Stamp duty + Legal fees + Other costs
- Required deposit and costs vs available funds
- New loan serviceability check
- Post-purchase LVR across entire portfolio

**Outputs**:
- Property-by-property equity analysis with suitability scores
- Optimal equity release strategy
- Total funds available (equity + cash)
- Feasibility assessment
- Post-purchase portfolio impact (cashflow, LVR, tax position)

**State-Specific Stamp Duty Rules**:
- Different rates for NSW, VIC, QLD, SA, WA, TAS, NT, ACT
- First home buyer concessions considered

### 1.3 Rate Cliff Simulator ("What If Rates Rise?")

**Purpose**: Stress test portfolio against interest rate increases to understand financial impact and runway.

**Inputs**:
- Property selection (prioritizes properties with fixed rate expiry)
- Current interest rate
- Stress test rate (projected variable rate)
- Savings buffer available

**Calculations**:
- Current monthly repayment at fixed rate
- Stressed monthly repayment at higher variable rate
- Monthly shortfall = Stressed payment - Current payment
- Cash runway = Savings buffer ÷ Monthly shortfall
- Current monthly cashflow (rent - expenses - mortgage)
- Stressed monthly cashflow

**Outputs**:
- Side-by-side comparison of current vs stressed payments
- Monthly gap analysis
- Cash runway in months
- Risk assessment (Low/Medium/High/Critical)
- Actionable recommendations:
  - Rent increase needed to maintain neutrality
  - Rate negotiation targets
  - Refinancing considerations
  - Buffer building strategies

**Risk Thresholds**:
- Low risk: > 24 months runway
- Medium risk: 12-24 months runway
- High risk: 6-12 months runway
- Critical risk: < 6 months runway

### 1.4 What-If Scenario Modeler

**Purpose**: Model how changes in rent or interest rates affect monthly cashflow.

**Inputs**:
- Current weekly rent
- Current interest rate
- Proposed rent increase
- Proposed rate change

**Outputs**:
- Current vs projected weekly/monthly cashflow
- Break-even rent calculation
- Break-even rate calculation
- Time to positive cashflow

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## 2. Portfolio Dashboard

### 2.1 Key Metrics

**Total Portfolio Value**: Sum of current market values for all properties

**Total Debt**: Sum of outstanding loan amounts

**Total Equity**: Portfolio value - Total debt

**Usable Equity**: Total amount available for borrowing at 80% LVR
- Calculation: Sum of (Property value × 0.8 - Outstanding loan) for each property

**Portfolio LVR**: (Total debt ÷ Total portfolio value) × 100

**Monthly Cashflow**: Net income across all properties
- Rental income - Mortgage payments - Operating expenses

### 2.2 Property-Level Analysis

For each property:
- Current value and growth since purchase
- Loan details (amount, rate, type, term)
- Monthly cashflow breakdown
- Equity position
- Individual LVR
- Key dates (lease expiry, fixed rate expiry, insurance renewal)

### 2.3 Cashflow Chart

Visual representation of:
- Monthly income streams
- Monthly expense categories
- Net cashflow trend over time

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## 3. Tax Intelligence

### 3.1 Negative Gearing

**Definition**: When property expenses exceed rental income, creating a tax-deductible loss.

**Calculation**:
- Annual rental income
- Less: Interest payments
- Less: Operating expenses (rates, insurance, management fees)
- Less: Depreciation allowances
- = Net rental income/loss

**Tax Benefit**: Net loss × Marginal tax rate = Tax refund

### 3.2 Deductions Tracked

- Loan interest payments
- Council rates
- Water rates
- Building insurance
- Landlord insurance
- Property management fees
- Maintenance and repairs
- Depreciation (building and fixtures)
- Bank fees
- Legal fees

### 3.3 Tax Summary Report

**Outputs**:
- Total deductible expenses
- Net rental income/loss
- Estimated tax impact
- Marginal tax rate applied
- Year-to-date vs annual projections

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## 4. Upcoming Events & Alerts

### 4.1 Date Tracking

- Fixed rate expiry dates
- Lease renewal dates
- Building insurance renewal
- Landlord insurance renewal
- Maintenance schedules

### 4.2 Alert Categories

**Urgent (within 30 days)**:
- Fixed rate expiring
- Lease expiring
- Insurance lapsing

**Upcoming (30-90 days)**:
- Rate review approaching
- Lease review approaching
- Insurance renewal due

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## 5. Property Management

### 5.1 Property Details

- Address and location
- Property type (house, apartment, townhouse, etc.)
- Bedrooms, bathrooms, car spaces
- Purchase details (date, price, stamp duty)
- Current valuation
- Property manager contact

### 5.2 Loan Information

- Loan amount and outstanding balance
- Interest rate (fixed or variable)
- Loan type (P&I or Interest Only)
- Loan term
- Fixed rate expiry date
- Lender details

### 5.3 Expenses

- Council rates
- Water rates
- Building insurance
- Landlord insurance
- Property management fee (% of rent)
- Maintenance provision
- Other expenses

### 5.4 Document Storage

File categories:
- Purchase contracts
- Loan documents
- Insurance policies
- Lease agreements
- Maintenance records
- Tax documents
- Valuation reports

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## 6. Reports

### 6.1 Accountant Export

Generate PDF report containing:
- Property summary
- Annual income and expenses
- Deductions breakdown
- CGT-relevant information
- Depreciation schedules
- Maintenance costs

### 6.2 Portfolio Summary

- All properties overview
- Total portfolio metrics
- Performance comparison
- Equity positions

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## 7. Australian Tax Context

### 7.1 Capital Gains Tax (CGT)

- Applies when selling investment property
- Cost base includes purchase price, stamp duty, legal fees, capital improvements
- 50% discount if held > 12 months
- PPOR (Primary Place of Residence) is CGT exempt
- Added to assessable income in year of sale

### 7.2 Negative Gearing

- Losses from investment property offset other income
- Reduces overall taxable income
- Tax refund = Loss × Marginal tax rate

### 7.3 Marginal Tax Rates (2024-25)

- $0 - $18,200: 0%
- $18,201 - $45,000: 19%
- $45,001 - $120,000: 32.5%
- $120,001 - $180,000: 37%
- $180,001+: 45%

### 7.4 Depreciation

- Building allowance: 2.5% p.a. for properties built after 1987
- Plant and equipment: Various rates depending on asset
- Depreciation schedule recommended for accuracy

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## 8. Technical Specifications

### 8.1 Data Security

- Encrypted data storage
- Secure authentication
- No third-party data sharing
- Australian data residency

### 8.2 Supported Browsers

- Chrome (latest)
- Safari (latest)
- Firefox (latest)
- Edge (latest)

### 8.3 Mobile Support

- Responsive web design
- Touch-optimized interface
- Mobile-friendly forms

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## 9. Limitations & Disclaimers

- Calculations are estimates for planning purposes
- Does not constitute financial advice
- Users should consult qualified financial advisors and accountants
- Tax rules may change; verify with ATO
- Property valuations are user-provided estimates
- CGT calculations simplified; individual circumstances may vary

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## 10. Contact & Support

Website: https://www.propplan.com.au
Status: Beta (Free to use)
Built for: Australian property investors