Cash on Cash Return

Viewing 9 posts - 1 through 9 (of 9 total)

landburn15972
Member
@landburn15972
Join Date: 2003
Post Count: 9
October 7, 2004 - 11:47 pm
Hi all,
can somebody please give me some up to date guidance on calculating Cash on Cash reurns. In the past I have been calculating my COCR on the purchase price plus inputs. I have heard that I should be calculating COCR on current market value plus inputs!
Be great too get some feedback
Gerard
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 8, 2004 - 12:05 am
I would calculate COC returns on money input and yearly income received. eg. $1000 invested, $500 yearly income = 50% COC return.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
calvin_thirty4
Participant
@calvin_thirty4
Join Date: 2004
Post Count: 556
October 8, 2004 - 4:10 am
Hi Landburn,
there has been some discusion on this in the past. The general concensus (??spelling??!) is that you don’t do it on the market value, you do it on the amount of money you put into the porperty. This would give you a return on the money you have invested! It has also been mentioned that it is not the best method for measuring your return on investment.
Be that as it may, it’s subjective and you’ll have to make up your own mind as to whether you like it or not.
Cheers
C@34
kay henry
Member
@kay-henry
Join Date: 2003
Post Count: 2,737
October 8, 2004 - 4:42 am
landburn
Steve McKnight the other evening, at his launch, referred to CoCR, and discussed market value as it relates to what you can do with that other money. So he was saying that you can work out your returns,m but to imagine the equity in the deal- and how you can make further returns on it. So you might be getting a 10% return on the 50k property, but if the property is now worth 100k, then there is 50k you could be making another 10% on.
This might be what you are referring to.
kay henry
richmond
Participant
@richmond
Join Date: 2003
Post Count: 831
October 8, 2004 - 5:23 am
kay,
isn’t that the velocity of money? ie keep it workign as hard as you can?
cheers
r
kay henry
Member
@kay-henry
Join Date: 2003
Post Count: 2,737
October 8, 2004 - 5:27 am
richmond yeah- that’s probably the one. I just thought I’d post about it because Steve did mention it the other evening in refgerence to CCoR.
My money just lays there and won’t work at all. It needs a holiday.
kay henry
FFComm
Member
@ffcomm
Join Date: 2004
Post Count: 627
October 8, 2004 - 5:30 am
richmond – yes it is known as velocity (kiyosaki latest book: “Who took My Money – Why slow investors lose and Fast Money Wins”).
You can use http://www.jaffasoft.com towork out your C0CR.
Rgds.
Lucifer_au
geo
Member
@geo
Join Date: 2003
Post Count: 1,194
October 9, 2004 - 12:43 am
Originally posted by Lucifer_au:
You can use http://www.jaffasoft.com towork out your C0CR.
WOW! – Brilliant site!
I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
landburn15972
Member
@landburn15972
Join Date: 2003
Post Count: 9
October 11, 2004 - 2:28 am
Thanks guys for the response
[biggrin]
Gerard