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'!
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'
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'
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