Can some smart person tell me what is the calculation for working out your percentage return on your Investment property.(Purchase price Versus Rent)
EG:
Purchase $240000 rent $280 per week %?Thanks Dom[biggrin]
must be no smart people up this morning so I will try to answer it.
weekly rent x 52 divided by prchase price x 100.
gives a % yield.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thankyou Simon.
Dom[biggrin]
very hard question I can’t answer. [cap][blink][evil4]
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loans and pre approval from 7.99%
EG:
Purchase $240000 rent $280 per week %?Determine yearly rental return
280 x 52 = 14,560then divide the return by the purchase price
14,560 / 240,000 = 0.06Times this by 100
6.06% return P.AShouldn’t you allow for vacacy periods when calculating this?
Is purely a tool for a broad brush comparison of properties. Assuming all things are equal except for rent.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
if your selling you use 52 weeks
when buying or being realistic use 48
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