> 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/support/guides/use-cases.md).
# Simulating Different Client Types
Practical recipes for common client scenarios. Each use case walks through which events and assumptions to combine, what to look for in the projections, and which strategy template (if any) gives you a head start.
These are starting points — every client's situation is different. Adjust the numbers, timing, and events to match the real deal.
***
## First Home Buyer
A single buyer purchasing their first property as an owner-occupier. Typically younger, with savings, possibly a HECS debt, and no existing property.
### Setup
1. **Client profile** — Use the **First Home Buyer** template in the Template Builder to pre-fill defaults ($95k salary, $65k deposit, $28k HECS). Adjust to the client's actual figures.
2. **Property** — Add the target property as **Owner-Occupier**. Set lot type to match (Established, New Home, or Vacant Land) — this affects stamp duty concessions.
3. **Loan** — Configure one P\&I loan. First home buyers often have higher LVR with LMI — the template defaults to \~91% LVR with LMI included.
4. **Goal** — Add a **Home** goal with **Cash Only** saving style and toggle **First Home Buyer** on to apply state concessions.
### Key assumptions to set
* **Gross Annual Salary** — set the actual figure on the personal timeline
* **Living Expenses** — realistic monthly expenses
* **HECS/HELP** — enter the outstanding balance; compulsory repayments are calculated automatically from income
* **Indexed Salary Growth** — toggle on with a rate (e.g. 3%) if the client expects regular pay increases
### What to look for in projections
* **Personal Cashflows** → Net Cashflow To Equity: is the client cash-positive after all property costs?
* **Cumulative Cashflow Impact chart** → how long before the property cost is recovered?
* **Cash Savings (incl. Offset)** → does the client maintain a buffer, or does cash trend towards zero?
* **HECS/HELP Repayment row** → confirm the compulsory repayment amount looks reasonable against the salary
{% hint style="info" %}
If the client qualifies for first home buyer stamp duty concessions, make sure **First Home Buyer** is toggled on in the Goal setup and the correct **State** is selected — concessions vary by state and property value.
{% endhint %}
### Variations
* **5% Deposit** — Same structure but with a smaller deposit and higher LMI. The **5% Deposit** strategy template is designed for this.
* **Guarantor Loan** — If a family member is guaranteeing, set LMI to $0 and adjust the deposit to reflect the guarantor's contribution. Use the **Guarantor Loan** strategy template as a starting point.
***
## Rentvesting
The client buys an investment property while continuing to rent where they live. They don't own a home — the investment property is their first purchase.
### Setup
1. **Client profile** — Set client category to **First Home Buyer** or **Investor** depending on their status. Enter their salary and current rental costs under Living Expenses.
2. **Property** — Add the investment property with purpose set to **Investment**. Enter realistic weekly rent, occupancy rate (\~95%), and operating expenses.
3. **Loan** — Interest-only loans are common for rentvesting to maximise cash deductions. Set loan type to **Interest Only** with an appropriate IO period (e.g. 5 years).
4. **Goal** — Add an **Investment** goal with saving style **Cash and Equity** if they plan to use future equity for a home purchase later.
### Key assumptions to set
* **Rental Income** — the investment property's weekly rent
* **Operating Expenses** — management fees, insurance, maintenance
* **Capital Growth** — growth assumption for the investment suburb
* **Living Expenses** — include their personal rent as part of living expenses (it's not modelled separately)
### What to look for in projections
* **Portfolio Cashflows** → Tax Paid (Saved): negative values mean the investment is generating tax deductions that offset salary income — this is negative gearing at work
* **Who's Paying chart** → what proportion is covered by the tenant and tax deductions vs the client's pocket
* **Funding Composition chart** → watch the Equity Available line — when this becomes meaningful, the client can consider drawing equity for a home purchase
* **Personal Cashflows** → Tax Return: positive values confirm the client is receiving tax refunds from the investment
{% hint style="info" %}
When the client eventually buys a home, clone the strategy and add the home purchase as a second property. Use a **Refinance** event on the investment to access equity for the home deposit. See [Equity Release](#equity-release) below.
{% endhint %}
***
## Portfolio Growth
An existing homeowner adding investment properties over time, leveraging equity from existing assets to fund new purchases.
### Setup
1. **Client profile** — Use the **Existing Home Owner** template. Enter the client's current salary, savings, and existing property details.
2. **First property** — Add their current home (Owner-Occupier) with accurate purchase date, current loan balance, and market value.
3. **Investment property** — Add a second property as **Investment**. Fund the deposit using equity from the first property.
4. **Refinance event** — On the main residence's timeline, add a **Refinance** at the month you want to draw equity. Allocate a portion of equity to the investment property under "$ of Equity for Investment" and select the new property.
### Key assumptions to set
* **Capital Growth** on both properties — use different rates if the suburbs have different growth profiles
* **Variable Rate** — set a realistic rate; consider what happens if rates rise (clone the strategy and test a higher rate)
* **Rental Income** and **Operating Expenses** on the investment property
### What to look for in projections
* **Funding Composition chart** → Debt Outstanding vs Equity — confirm leverage is manageable and equity grows over time
* **Portfolio Value by Property chart** → each property's contribution to total portfolio value
* **Personal Cashflows** → Tax Return: the combined tax benefit from the investment portfolio
* **Periodic Equity Cashflow chart** → when does cumulative cashflow cross above zero?
### Scaling to three or more properties
Repeat the pattern: as equity builds in existing properties, add a Refinance event to draw equity, then add a new investment property funded by that equity. Each new property gets its own timeline bar with independent events.
{% hint style="info" %}
Use [Compare Strategies](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/clone-and-compare.md) to test different timing — e.g. "Buy IP2 in year 3" vs "Buy IP2 in year 5" — and compare portfolio trajectories side by side.
{% endhint %}
***
## Equity Release
Unlocking equity from an existing property to fund an investment purchase, renovation, or other financial goal — without selling the asset.
### Setup
1. **Existing property** — Must already be on the strategy with a loan that has been partially paid down and/or capital growth creating usable equity.
2. **Refinance event** — Add a **Refinance** on the existing property at the desired month. In the refinance form:
* Allocate existing debt to the new loan structure
* Draw available equity using "$ of Equity Available"
* Assign the equity purpose (investment allocation, select property)
3. **New loan structure** — Configure the post-refinance loan terms: lender, tenor, loan type (P\&I or IO), and interest rate.
### What to look for in projections
* **Equity Available at 80% LVR** in the Funding Composition chart — this is the maximum drawable amount
* **Debt Payments** in Portfolio Cashflows — confirm the new repayment is serviceable
* **Cash Savings** — does the equity draw provide enough for the intended purpose (deposit, renovation costs)?
{% hint style="info" %}
The **Equity Release** strategy template on the Simulator home page is designed for this scenario. Refinance validation prevents drawing more equity than is available — the form shows alerts if you exceed the limit.
{% endhint %}
***
## Refinancing
Restructuring existing debt with a new lender, accessing better rates, splitting loans, or changing loan types. Not necessarily drawing equity — sometimes purely about improving the debt structure.
### Setup
1. **Refinance event** — On the property's timeline, add a **Refinance** at the target month.
2. **New lender** — Enter the proposed lender.
3. **Loan splits** — Create one or more new loans within the refinance. Common structures:
* Split into a fixed-rate portion and a variable portion
* Separate the investment-deductible portion from the non-deductible portion
* Move from Interest Only to P\&I (or vice versa)
4. **Commission tracking** — Update upfront and trail commission percentages on each new loan.
### Key assumptions to set
* **Fixed Rate** and **Fixed Length** if splitting to a fixed portion
* **Variable Rate** on the variable portion
* **IO Length** if switching to or from Interest Only
### What to look for in projections
* **Debt Payments** line in Portfolio Cashflows — compare before and after the refinance month
* **Interest & Financing Fees** — is the total interest cost lower with the new structure?
* **Operating Profit** — does the improved loan structure turn the portfolio cash-positive sooner?
{% hint style="info" %}
Clone the strategy before adding the refinance. Compare the original (no refinance) against the refinanced version using [Compare Strategies](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/clone-and-compare.md) to show the client the dollar impact.
{% endhint %}
***
## Renovate and Hold
The client renovates an existing property (or a new purchase) to increase its value and rental yield, then holds it as an investment. Combines construction finance with post-renovation cashflow modelling.
### Setup
1. **Property** — Add the property with its **pre-renovation** purchase price and current loan.
2. **Construction Loan event** — On the property timeline, add a **Construction Loan** at the renovation start month:
* **Construction Length** — duration in months
* **Build Cost (Including GST)** — total renovation cost
* **Estimated Value at Completion** — the after-repair value (ARV). This is critical — it determines the post-renovation LVR and cash required.
* **Construction Interest Rate** — rate during the build phase
3. **Cash Improvements event** — If part of the renovation is funded by cash (not the construction loan), add a **Cash Improvements** event for the capital works portion. This creates a Division 43 depreciation deduction.
4. **Repayment Facility** — In step 2 of the Construction Loan form, set the ongoing loan terms for after the build completes.
5. **Update rental income** — Click the Rental Income assumption row at the post-renovation date and enter the new weekly rent reflecting the improved property.
### Key assumptions to set
* **Estimated Value at Completion** — get this right; it drives the LVR calculation and determines whether cash is required
* **Operating Expenses** — these may change post-renovation (lower maintenance, higher insurance)
* **Capital Growth** — growth from the new (higher) base value
### What to look for in projections
* **Cash Required** shown in the Construction Loan form — this is the equity gap if the build cost pushes debt above 80% LVR
* **Portfolio Value** chart — the property value should step up at the renovation completion month
* **Tax Benefits** → Capital Works Depreciation: the cash improvements generate ongoing deductions
* **Periodic Equity Cashflow** → large outflow during construction, then improved ongoing cashflow from higher rent
{% hint style="info" %}
The **Construction + Refinance** strategy template combines a build phase with a refinance into a standard loan — useful when the client plans to exit the construction loan immediately after completion.
{% endhint %}
***
## Downsize / Retire
The client sells a property (often the family home), pays down debt, and models a reduced income in retirement. The goal is to see how the portfolio sustains them after the sale.
### Setup
1. **Sell event** — On the property to be sold, add a **Sell** event at the planned sale date. Enter the expected sale price. Selling costs default to 3%.
2. **Debt reduction** — If the sale proceeds will pay off other loans, add an **Offset Loans** event (Voluntary Repayment type) on the personal timeline at the same month, allocating funds to the relevant loan.
3. **Income change** — On the personal timeline, click the **Gross Annual Salary** row at the retirement date and set it to $0 (or the expected retirement income — super drawdown, pension, etc.).
4. **Living expenses adjustment** — Click the **Living Expenses** row at retirement and update to reflect lower costs.
### Key assumptions to set
* **Sale Price** — use a realistic figure, factoring in capital growth to the sale date
* **Net Capital Gain** — the Sell event form auto-calculates this, but you can override it. Main residence sales are generally CGT-exempt.
* **Post-retirement income** — use Side Hustle Income or Misc Investment Cashflows for non-salary income (dividends, super drawdown)
### What to look for in projections
* **Net Cashflow From Sale** in Portfolio Cashflows — the net proceeds after debt and selling costs
* **Cash Savings (incl. Offset)** — does the client's cash position sustain them through retirement?
* **Personal Cashflows** → with salary at $0, confirm living expenses and any remaining debt repayments are covered by the sale proceeds and other income
* **Cumulative Wealth Impact** → long-term trajectory after the sale — does wealth hold or erode?
{% hint style="warning" %}
If the property being sold is a **main residence** held for the full ownership period, CGT should be $0. If it was ever rented (via Move House or Partial Rental), a partial CGT liability may apply. Review the estimated capital gain in the Sell form carefully.
{% endhint %}
***
## Granny Flat Strategy
Adding a granny flat to a main residence to generate rental income. The granny flat becomes a separately rented dwelling on the same title.
### Setup
1. **Property** — The main residence must already be on the strategy.
2. **Granny Flat event** — On the property timeline, add a **Granny Flat** event at the build completion month:
* **Total Cost at Completion** — the build cost
* **Granny Flat Floor Space** — square metres of the granny flat
* **Main House Floor Space** — square metres of the main house (auto-filled if available)
3. **Update rental income** — Click the Rental Income assumption row at the granny flat completion date and enter the expected weekly rent from the granny flat.
4. **Update operating expenses** — Increase operating expenses to account for the additional dwelling (maintenance, insurance, etc.).
### Key assumptions to set
* **Floor space split** — this ratio determines the CGT apportionment. The granny flat's share of the total floor space is treated as an investment asset for CGT purposes.
* **Rental Income** — the weekly rent the granny flat will generate
* **Capital Growth** — growth applies to the whole property (including the granny flat value add)
### What to look for in projections
* **Tax Benefits** → Capital Works Depreciation: the granny flat build cost generates Division 43 deductions
* **Rental Income** line in Portfolio Cashflows — the new income stream from the granny flat
* **Who's Paying chart** — the tenant (granny flat renter) should now cover a portion of the property's holding costs
* **Personal Cashflows** → Tax Return: the combined effect of rental income and deductions on the client's tax position
{% hint style="info" %}
A granny flat on a main residence has CGT implications. The floor space ratio determines what portion of the property loses its main residence CGT exemption. For detailed tax modelling, ask ScaleAI via **Broker Brain**. See [Property Events](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/property-events-1.md#granny-flat) for field details.
{% endhint %}
***
## Partial Rental / House Hack
Renting a room in the client's main residence. Generates income but partially exposes the property to CGT.
### Setup
1. **Property** — The main residence must already be on the strategy as Owner-Occupier.
2. **Partial Rental event** — On the property timeline, add a **Partial Rental** event:
* **Duration** — how many months the room will be rented
* **Floor Space Rented** — square metres of the rented area
* **Total Floor Space** — total property floor space
* **Rental Income** — weekly rent for the room
3. **No other changes needed** — the simulation automatically adjusts the tax treatment and CGT exposure based on the floor space ratio and duration.
### Key assumptions to set
* **Floor space ratio** — this determines both the deductible portion of expenses and the CGT-exposed portion of the property
* **Duration** — if renting for more than 6 years, a warning appears about increased CGT liability (the ATO's six-year absence rule)
* **Rental Income** — weekly amount for the room
### What to look for in projections
* **Rental Income** in Portfolio Cashflows — the new income from the rented room
* **Tax Benefits** — a proportion of property expenses (based on floor space ratio) becomes deductible
* **Personal Cashflows** → Tax Return: the net tax effect of the rental income vs new deductions
* **CGT alert** in the Partial Rental form — shows the percentage of the property exposed to capital gains
{% hint style="warning" %}
Partial rental can trigger a **deemed acquisition** on the rented portion of the property, resetting the CGT cost base to market value at the date renting begins. If the client later sells, the capital gain on that portion is calculated from the deemed acquisition value. See [Property Events](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/property-events-1.md#partial-rental) for details.
{% endhint %}
***
## Convert Main Residence to Investment
The client moves out of their home and rents it out — converting it from owner-occupier to investment property. Often paired with purchasing a new home.
### Setup
1. **Move House event** — On the existing property, add a **Move House** event at the date the client moves out. Set direction to **Main Residence → Investment Property**.
2. **Claim Main Residence Exemption** — The form asks whether the client plans to claim the main residence exemption on another property during this period. If they're buying a new home, toggle this on.
3. **End Date** — Set the date the property reverts (or is eventually sold).
4. **Update rental income** — Click the Rental Income assumption row at the move-out date and enter the expected weekly rent.
5. **Update operating expenses** — Set realistic operating expenses for the property as a rental.
6. **New home** — Add the new property to the strategy as an Owner-Occupier.
### What to look for in projections
* **CGT Exemption Status** shown in the Move House form — this tells you what percentage of the gain is exempt
* **Tax Benefits** — the property now generates deductible expenses (interest, operating costs, depreciation)
* **Portfolio Cashflows** → Rental Income appears from the conversion date
* **Cumulative Cashflow Impact** — compare before and after the conversion; the investment income and tax deductions change the trajectory
{% hint style="info" %}
Under the ATO's six-year absence rule, a property can continue to be treated as the main residence for up to 6 years after moving out — provided the client doesn't claim another property as their main residence during that period. For complex CGT scenarios, ask ScaleAI via **Broker Brain**.
{% endhint %}
***
## Investment Upgrade
The client already owns one investment property and wants to add a second (or third), leveraging equity from the existing portfolio.
### Setup
1. **Existing portfolio** — Ensure all current properties and loans are on the strategy with accurate current values and balances.
2. **Appraisal event** (optional) — If a formal valuation has been done, add an **Appraisal** event on the property being leveraged. This overrides the modelled value with the real figure.
3. **Refinance or Add Loan** — Draw equity from an existing property:
* **Refinance** if restructuring the entire debt with a new lender
* **Add Loan** if keeping the existing loan and adding a new one against the same property
4. **New property** — Add the investment property. Link the equity draw to this property in the loan's investment allocation step.
### What to look for in projections
* **Equity Available at 80% LVR** — confirm sufficient equity exists before the new purchase
* **Debt vs Equity** in the Funding Composition chart — portfolio leverage after the new acquisition
* **Operating Profit** — does the combined portfolio generate positive operating cashflow, or is it still negatively geared?
* **Who's Paying chart** — how the cost burden shifts with the addition of a second investment
{% hint style="info" %}
The **Investment Upgrade** strategy template is designed for this scenario. Use it as a starting point, then customise the property details and loan structure.
{% endhint %}
***
## Putting It Together
Most client strategies combine several of these recipes. A typical progression might look like:
1. **First Home Buyer** → purchase owner-occupier
2. **Portfolio Growth** → refinance to access equity, buy first investment property
3. **Renovate and Hold** → add value to the investment, increase rental yield
4. **Investment Upgrade** → use portfolio equity for a second investment
5. **Downsize / Retire** → sell the family home, pay down debt, model retirement
Use [Compare Strategies](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/clone-and-compare.md) at each decision point to test alternatives before recommending a path.
***
## Quick Reference
| Scenario | Key events | Key assumptions | What to watch |
| --------------------- | ---------------------------------------- | ---------------------------------- | --------------------------------------------- |
| First Home Buyer | Add property (OO), Add Loan | Salary, HECS, Living Expenses | Net Cashflow, Cash Savings |
| Rentvesting | Add property (Investment), Add Loan (IO) | Rental Income, Operating Expenses | Tax Paid (Saved), Who's Paying |
| Portfolio Growth | Refinance, Add property (Investment) | Capital Growth, Variable Rate | Funding Composition, Equity Available |
| Equity Release | Refinance | Equity Available at 80% LVR | Debt Payments, Cash Savings |
| Refinancing | Refinance | Fixed/Variable Rate, IO Length | Debt Payments, Interest costs |
| Renovate and Hold | Construction Loan, Cash Improvements | ARV, Build Cost, Rental post-reno | Cash Required, Capital Works Depreciation |
| Downsize / Retire | Sell, Salary → $0 | Sale Price, Post-retirement income | Net Sale Proceeds, Cash Savings |
| Granny Flat | Granny Flat event | Floor space split, Rental Income | Capital Works Depreciation, CGT apportionment |
| Partial Rental | Partial Rental event | Floor space ratio, Duration | CGT exposure, Tax Return |
| Convert to Investment | Move House | CGT Exemption, Rental Income | Tax Benefits, CGT Exemption Status |
| Investment Upgrade | Refinance / Add Loan, Add property | Equity Available, Capital Growth | Portfolio leverage, Operating Profit |
***
Can I combine multiple use cases in one strategy?
Yes. A single strategy can include any combination of events across multiple properties and the personal timeline. The simulation handles the interactions automatically — tax impacts, cashflow cascading, and equity calculations all update together.
Should I use templates or build from scratch?
Templates save time on data entry — they pre-fill realistic defaults so you can focus on customising for the client's situation. Use a template when one matches the scenario, then adjust. Build from scratch when the client's situation doesn't fit any template or when you need full control from the start.
How do I model a rate change without refinancing?
If the client's existing lender changes their variable rate, you don't need a Refinance event. Update the **Variable Rate** property assumption at the date the rate changes. The simulation recalculates all interest costs from that point forward. For fixed-to-variable rollovers, edit the loan's interest type.
What's the best way to show a client the impact of a strategy change?
Clone the Base Case, make the change on the clone, then use [Compare Strategies](https://github.com/scaleapp-au/scaleconnect-docs/blob/main/help-centre/guides/clone-and-compare.md) to overlay both strategies. The comparison charts show Portfolio Value, Debt vs Equity, Net Cashflow, and Wealth Impact side by side — making the dollar difference immediately visible.
How do I model a client receiving an inheritance or windfall?
Add a **Bonus / Commission** event on the personal timeline at the date the funds are received. If the client uses the windfall to pay down a property loan, follow it with an **Offset Loans** event (Voluntary Repayment) targeting the relevant loan. The simulation adjusts interest costs and cash position from that point.
Can I model negative gearing across multiple properties?
Yes. Each investment property's deductible losses are calculated independently and combined at the personal cashflow level. The Tax Return line in Personal Cashflows shows the net refund from all properties' deductions offsetting the client's salary income. The more investment properties with deductible losses, the larger the tax benefit — up to the point where the portfolio becomes cash-positive.
---
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