I have written ”Emily Smith’s Guide for Young Property Investors” to help people who may be unsure on where to start and want to financially secure their future.
For your copy, please click here.
Here is a peak of what is included:
Yield / Rate of Return Calculator
1.Rent per week x 52
2.Divide total from number 1 by the price of the property
3.This figure is the percentage of return, when multiplied by 100
1.$300 rent per week x 52 = $15,600
2.$15,600 / $200,000 = 0.078
3.The percentage of return is 7.8% (0.078 x 100 = 7.8%)
This calculation is a very quick way to establish if the rental income is enough to cover the mortgage. If the percentage of return is higher than the current mortgage rates (this excludes rates, insurance and maintenance) then the property may be a good investment.
June 11 2010 11:22 am