Hello all. Can anyone tell me how an investment's rate of return is calculated? We were told that unless we can see a 20% IRR in a property over 7-10 years, it's not worth it.
My husband and I are looking at purchasing a three bedroom property about 8km from the city that's about 12 years old, for $340K. We're looking at getting 100% financing. It can be rented out at $350/week. I reckon that in seven or 10 years, it would be worth about $500K? (Rough guess). Property is in Perth.
How would I work out a rate of return on it? Thank you very much
My husband and I are looking at purchasing a three bedroom property about 8km from the city that's about 12 years old, for $340K. We're looking at getting 100% financing. It can be rented out at $350/week. I reckon that in seven or 10 years, it would be worth about $500K? (Rough guess). Property is in Perth.
How would I work out a rate of return on it? Thank you very much