From: Simon and Julie M
Hi All
Here is a formula that I use to show whether my investment stands the test of time and helps me to understand whether the same deal is good on current market trends.Although it is a simple formula I have broken it up into sections.
Have fun!
1. Land Value at time of Purchase divided by Purchase price times 100 = %
example 100K/230K*100 = 43.47%
2. Current land value divided by the above result
Example 115K/43.47 = 2645.50
3. *100 should give a result that shows the current market value of the same deal done today.
example 2645.50*100 = 264.55K
4.I then ask myself if it is possible to better that deal on today's market.
Kind regards
Simon
Hi All
Here is a formula that I use to show whether my investment stands the test of time and helps me to understand whether the same deal is good on current market trends.Although it is a simple formula I have broken it up into sections.
Have fun!
1. Land Value at time of Purchase divided by Purchase price times 100 = %
example 100K/230K*100 = 43.47%
2. Current land value divided by the above result
Example 115K/43.47 = 2645.50
3. *100 should give a result that shows the current market value of the same deal done today.
example 2645.50*100 = 264.55K
4.I then ask myself if it is possible to better that deal on today's market.
Kind regards
Simon
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