Why current numbers are not enough
Today's asking rent and interest rate are only one scenario. A resilience check asks whether the specific property can absorb a realistic shock without forcing a distressed decision. It is not a prediction of future rates, rent or vacancy.
Three scenarios to model
Run an interest-rate shock above the current rate, a vacancy shock calibrated to the suburb and property type, and an expense shock such as an unexpected hot-water, roof or compliance cost. Then combine the higher rate and vacancy in the same year.
- Recalculate loan repayments at current rate plus 2–3 percentage points.
- Model 8–12 weeks of vacancy, adjusting for local market conditions.
- Add a significant one-off maintenance or upgrade cost.
- Check whether cash reserves can cover the combined shortfall.
What a pass looks like
A property does not have to remain cash-flow positive under stress. A reasonable pass means the shortfall is coverable from reserves without high-interest debt or a forced sale, subject to the buyer's own risk tolerance and professional advice.
Where YieldFrame fits
YieldFrame keeps rate, vacancy and expense assumptions visible and editable so multiple scenarios can be compared. It is a planning tool, not financial advice, lending approval or a prediction.