All Topics / Help Needed! / Net Profit Percentage calculation

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of rulershiprulership
    Member
    @rulership
    Join Date: 2012
    Post Count: 12

    Hi All

    My question relates to the what is the best way to calculate the expected annual growth of a property in order

    to have a relatively accurate NPP?  Still in the ' learning stage'!

    Profile photo of ChrisA1ChrisA1
    Participant
    @chrisa1
    Join Date: 2011
    Post Count: 172

    Net Cash flow x Expected growth x 100

                  Cash down                          1

    Using a property I was looking at recently, my calculations are

    (18720 – 17190) x 6  x 100

               53200

    = 17.36%

    From this, I would be interested in people's comments – would you have kept walking based on this calculation, or would this warrant further investigation (I realise there is sooooo much more to investigating a potential purchase, but I'm interested in thoughts about this calculation).

    Hopefully I have added to this thread rather than sabotaged it!

    ChrisA1

    Persistence is 'to keep on keeping on, no matter how hard the going may be'

    Profile photo of ChrisA1ChrisA1
    Participant
    @chrisa1
    Join Date: 2011
    Post Count: 172

    Opps, wrong tangent there….

    I look in the back of YIP or SPI for the median 12 month growth for the area you are looking at (I would think the calculation will always be a 'point in time' calculation – not something you could calculate now and come back to months down the track).

    ChrisA1

    Persistence is 'to keep on keeping on, no matter how hard the going may be'

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.