> For the complete documentation index, see [llms.txt](https://docs.scaleconnect.com.au/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.scaleconnect.com.au/scaleconnect-docs/simulator/assumptions-and-events/property-events-1.md).
# Property Events
Property events are discrete changes you place on a property's timeline — adding a loan, refinancing, selling, renovating, or changing occupancy. Each event appears as an icon at the month it occurs and adjusts how the simulation models that property's cashflows, equity, and tax position from that point forward.
For background growth and cost settings, see [Property Assumptions](/scaleconnect-docs/simulator/assumptions-and-events/property-assumptions.md).
***
## How Property Events Affect Cashflows
Every property event feeds into three layers of cashflow projection:
* **Property cashflows** — rent received, loan repayments, operating expenses, capital works depreciation, and capital gains on sale. Each property has its own cashflow view.
* **Personal cashflows** — tax deductions from investment property expenses (negative gearing), rental income, and CGT liabilities flow into the client's personal tax position.
* **Portfolio cashflows** — the combined view across all properties and personal income, showing the full financial trajectory of the strategy.
When you add or change a property event, all three layers recalculate from that point forward.
{% hint style="info" %}
For complex tax scenarios — how negative gearing offsets work, how the six-year CGT rule applies, how deemed acquisition affects the cost base — ask ScaleAI via **Broker Brain** or the **client assistant** in ScaleApp.
{% endhint %}
***
## Adding an Event
1. Navigate to a property's timeline in the simulator.
2. Scroll to the month where you want the event to occur.
3. Click the **+** button at the top of the timeline.
4. A sidebar opens with all available event types in a grid. Select one.
5. Fill in the form and click **Add** or **Apply**.
{% hint style="warning" %}
Some event types — Add Loan, Refinance, Adjust Loan Terms, Construction Loan, Sell, and Move House — are disabled if the selected month is before the property's start date. Scroll to a month after the property was added to enable them.
{% endhint %}
## Editing an Event
Click any event icon on the property bar. If multiple events share the same month, an event details list appears — select the one to edit. The form opens pre-filled.
## Deleting an Event
Inside any event's edit form, click **Undo** at the bottom. Deletions are permanent and cannot be reversed.
***
## Event Types
### Add Loan
Adds a new loan against the property — used for initial purchase finance or additional borrowing. This is a two-step form.
**Step 1** captures the loan details: lender, initial balance (minimum $300), tenor (0–30 years), loan type (Principal & Interest or Interest Only), interest type (Variable or Fixed), rate, and commission percentages (upfront and trail).
**Step 2** captures the loan's purpose: how much is used for investment and which property it's allocated to. This drives the **percentage of total interest that's tax-deductible** — calculated automatically from the investment allocation.
The form displays **Equity Available** and **Available Equity Remaining** to help size the loan.
You can add multiple loans to one property. Each creates a separate loan with its own repayment schedule.
***
### Refinance
Consolidates existing loans with a new lender and optionally accesses available equity. A refinance can produce multiple new loans — each section is collapsible.
For each new loan, set: portion of existing debt allocated, additional equity drawn, investment allocation (for tax deductibility), property funded, tenor, loan type, interest type, rate, and commission.
Field Definitions
`Existing Debt`
`Equity Available`
`Lender`
`.........`
{% hint style="warning" %}
Total existing debt across all new loans cannot exceed the residual debt balance. Total equity drawn cannot exceed equity available. Validation alerts fire if either limit is exceeded.
{% endhint %}
The form shows **Minimum New Loan Amount** and **Sum of New Loans** at the bottom to help you balance the split.
***
### Construction Loan
Models renovation or build finance. This is a two-phase event: a **Drawdown Facility** (construction phase) followed by a **Repayment Facility** (post-completion loan).
**Drawdown Facility** — enter the construction length (months), build cost including GST, estimated value at completion (after-repair value), and the construction interest rate. The form auto-calculates debt outstanding, debt at completion, maximum loan permitted (80% of ARV), and any cash shortfall required.
**Repayment Facility** — after the construction phase completes, configure the ongoing loan: lender, tenor, loan type, interest type, and rate. Same structure as Add Loan.
***
### Adjust Loan Terms
Changes the terms on an existing loan without a full refinance — switching from variable to fixed, adjusting the IO period, or changing the rate. Select the loan to modify and update the relevant fields.
***
### Sell
Records a property sale at a future date. Enter the expected sale price — selling costs are auto-calculated at 3% of sale price (read-only). The **Estimated Net Capital Gain** is fetched from the simulation engine and can be manually overridden if needed.
{% hint style="info" %}
If you change the sale price after the capital gain has been calculated, a warning appears: *"Your Net Capital Gain estimate may no longer reflect your updated sale price."*
{% endhint %}
The property remains on the timeline after the sale event. Cashflows after the sale date reflect the proceeds and any CGT liability.
***
### Move House
Changes a property's classification between **Main Residence** and **Investment Property** (or vice versa). This affects CGT exemption status, rental income modelling, and expense deductibility.
Choose the direction, set an end date (when the property reverts or is sold), and — for Main → Investment moves — decide whether to claim the Main Residence Exemption on another property during this period.
{% hint style="warning" %}
Moving a property from Main Residence to Investment triggers a **deemed acquisition** — the ATO treats the property as acquired at market value on the date of change, resetting the CGT cost base. The same applies when adding a Partial Rental. For detailed tax implications, ask ScaleAI.
{% endhint %}
***
### One-Off Expense
A single expense against the property. Choose between two categories:
**Operating** — costs to run and maintain a rental property (e.g. emergency repairs, pest treatment). Fully deductible in the year incurred. Enter a name and dollar amount.
**Plant & Equipment (PP\&E)** — depreciable assets within the property (e.g. air conditioning, appliances). Cost is claimed gradually over time through depreciation. Enter the asset name, cost (book value), effective life in years, and depreciation method (Straight Line or Diminishing Value).
{% hint style="warning" %}
The expense type (Operating vs PP\&E) cannot be changed after the event is created. If you chose the wrong one, delete the event and re-create it.
{% endhint %}
***
### Cash Improvements
Structural improvements funded by cash — a new bathroom, an extension, a structural renovation. These are capital works, distinct from operating expenses and PP\&E.
Enter the improvement name and total cost at completion. Capital works are depreciated differently from PP\&E items — for specifics on how capital works deductions (Division 43) are modelled, ask ScaleAI.
***
### Granny Flat
Adds a secondary dwelling to the property — for rental income or family use. Enter the build cost, granny flat floor space (sqm), and main house floor space (sqm).
The floor space split is used for CGT apportionment — the granny flat portion is treated separately for capital gains purposes.
{% hint style="info" %}
Renting a granny flat on a main residence has both income tax and capital gains tax implications. The floor space ratio determines the CGT-liable portion of the property.
{% endhint %}
***
### Partial Rental
Renting a room in the client's main residence. Enter a room name (optional), duration in months, floor space rented, total floor space, and weekly rental income.
{% hint style="warning" %}
If the duration exceeds **6 years (72 months)**, a warning appears — this relates to the ATO's six-year absence rule. Renting for longer increases capital gains liability.
{% endhint %}
If floor space is entered, a CGT alert shows the percentage of the property exposed to capital gains (floor space rented ÷ total floor space). Like Move House, partial rental can trigger a deemed acquisition on the rented portion.
***
### Appraisal
Overrides the modelled property value with an actual valuation figure. Enter the appraised market value — this replaces both the capital growth assumption and any live property data from that point forward.
Use this when a formal valuation has been completed and you want the simulation to use real numbers rather than projections.
***
Can I add multiple loans to one property?
Yes. Each Add Loan event creates a separate loan. Refinance also lets you split into multiple new loans. All loans on a property contribute to the total debt and repayment cashflows.
What happens if I refinance before an existing loan ends?
The refinance replaces the existing debt structure from that date. The residual balance of the old loans is carried into the refinance form automatically.
Does selling a property remove it from the timeline?
No. The property remains on the timeline with a sell event marker. Cashflows after the sale date reflect the proceeds and any capital gains tax liability.
Why are some event types greyed out?
If the selected month is before the property's start date, events like Add Loan, Refinance, Construction Loan, Sell, and Move House are disabled. Scroll to a month after the property was added to enable them.
Can I undo a deleted event?
No. Deletions are permanent. If you accidentally delete an event, re-create it manually.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.
Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:
```
GET https://docs.scaleconnect.com.au/scaleconnect-docs/simulator/assumptions-and-events/property-events-1.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.