All Topics / Help Needed! / The 11 second solution question

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  • Profile photo of kiwi100kiwi100
    Member
    @kiwi100
    Join Date: 2005
    Post Count: 1
    February 5, 2005 - 11:21 am

    Hi

    With Steves 11 second caculation, do you take the deposit away from the gross property price or do you just take the weekly rent/2 X 1000 = gross property price.

    Cheers

    Justin
    New Zealand

    Profile photo of Kiwi-FullaKiwi-Fulla
    Member
    @kiwi-fulla
    Join Date: 2002
    Post Count: 371
    February 5, 2005 - 12:54 pm

    Rent Divide by 2 X 1000 = house price.
    eg
    Rent: $200 divide by 2 = $100
    multiply by 1000 = $100,000

    Remember… this is a preliminary ” is this property interesting enough for further investigation?” technique. If you are getting the house/unit/land for less than that figure then all is good….. however sometimes soft settlemnt terms make all the difference to sweeten the transaction.

    Profile photo of Tigerbob_2Tigerbob_2
    Member
    @tigerbob_2
    Join Date: 2004
    Post Count: 20
    February 9, 2005 - 12:10 pm

    The deposit amount is not relevant as we are looking at gross return. Whether you pay 100% cash deposit or nothing is not relevant in this calculation.

    Regards
    Tiger

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