All Topics / General Property / calculating returns on a mobile phone!!!

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of wannabe2wannabe2
    Member
    @wannabe2
    Join Date: 2003
    Post Count: 65

    guys out there can you help? i’ve forgotten how to calculate the worth of a deal re : the rental returns v the purchase price .its been that long since i’ve bought a place and now i’m a long way from home without my bibles!!![blush2]

    Profile photo of p0sitiveCasHfl0wp0sitiveCasHfl0w
    Member
    @p0sitivecashfl0w
    Join Date: 2003
    Post Count: 133

    If you are asking for the 11 second solution then it is simply:

    Rent per week Divided by 2 Multiplied by 1000

    eg rent pw of $150 / 2 x 1000 = $75000

    If the answer is more than the asking price then the deal will most probably be not +ve geared.

    If you are just trying to work out the rental yield then it is:

    Rent per week Multiplied by 52 Divided by Purchase Price Multiplied by 100

    eg $150 x 52 / $75000 x 100 = 10.4%

    Hope this helps.

    Cheers,

    J.

    Is your money LAZY[?]

    Profile photo of wannabe2wannabe2
    Member
    @wannabe2
    Join Date: 2003
    Post Count: 65

    really appreciate your help,just had a brain explosion!!![blush2]

    Profile photo of p0sitiveCasHfl0wp0sitiveCasHfl0w
    Member
    @p0sitivecashfl0w
    Join Date: 2003
    Post Count: 133

    No problem at all [biggrin]

    Cheers,

    J.

    Is your money LAZY[?]

    Profile photo of MiniMogulMiniMogul
    Participant
    @minimogul
    Join Date: 2002
    Post Count: 1,414

    I calculate the gross yield like this:

    rent per week….times 52 equals….

    divided by the purchase price.

    i.e. for a 52k house where the rent is 100 per week

    100 x 52 = 5200
    divided by the purchase price = .1

    .1 means ten percent yield
    .05 means 5 percent yield

    etc

    i.e. I skip the ‘x 100’ bit and do that in my head cause I know what the decimals mean

    joy to the world

Viewing 5 posts - 1 through 5 (of 5 total)

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