Hi peoples,
Following on from Rolf's post about using a 10% vacancy rate when analysing properties.....
What are some other figures that people plug in to help evaluate a property? A few that I can think of are (Please add to the list/debate the figures etc etc);
1) 106% of purchase price seems to be used to cover legal fees and other purchase costs
2) As stated above 10% might be a good figure for vacancy rate?
3) 10% rental yield also used as a rough guide to a property being +ve or -ve?
4) Banks presume cashflow neutral at 12%?
Am very interested as to various peoples approaches to evaluating an IP.
Cheers
Chris
Following on from Rolf's post about using a 10% vacancy rate when analysing properties.....
What are some other figures that people plug in to help evaluate a property? A few that I can think of are (Please add to the list/debate the figures etc etc);
1) 106% of purchase price seems to be used to cover legal fees and other purchase costs
2) As stated above 10% might be a good figure for vacancy rate?
3) 10% rental yield also used as a rough guide to a property being +ve or -ve?
4) Banks presume cashflow neutral at 12%?
Am very interested as to various peoples approaches to evaluating an IP.
Cheers
Chris