14Feb/08Off
Financial Calculators For Making Real Estate Investment Decisions
I have found the following two calculators useful for making decisions regarding whether or not it is a good time to buy or sell real estate. Some good test examples are:
- What is a fair market value for a house given its rent and an investment horizon of 10 years? e.g. No difference in wealth between renting and owning over a period of 10 years. What about 30 years? What about 5 years?
- How much does increasing or decreasing interest rates by 2 percentage points affect the economics of buying vs. renting?
- Develop three cases using conservative values, best guess values and upside values for owning vs. renting. How do they compare?
- Would a rental property have a greater return than safe investments like bonds or GIC’s?
The calculators are available at:
