Capital Growth

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From: Brendan S


How do you calculate Capital Growth ?
We recently built a new property for $220,000, already similar new properties in the same area are selling for $270,000. Can you work out a Capital Growth rate from these figures? We are trying to work this out to enter it into our PIA program.

 

[WebBoard]

Reply: 1
From: Owen .


Click on the menu option 'Calculator' and choose the second one down, 'Capital Growth'. It's self explanatory after that.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"

 

[WebBoard]

Reply: 1.1
From: Webmaster (Somersoft)


If Brendan only has the PIA Personal software, it will not have the suite of calculators available in the other versions. However all is not lost! You do not need to work out the capital growth, you can let the program do it for you automatically. If the property was purchased for $220k and one year later is worth $270k, simply insert the 220k in the property value cell in the Input column and 270k in the Year 1 cell in the same row. The capital growth rate for year 1 will show 22.73%. You will still need to specify what you anticipate will be the capital growth rate for later years, but at least it answers your question.

 

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Reply: 1.1.1
From: Brendan S


Thanks Owen, and thanks Ian.
We do only have the PIA personal, so the tip from Ian has worked it out for us.

Cheers,
BS.