House Prices & Rental Charges Calculator
Can we know what houses are really worth? It's a vexed question with no clear answer. Generally people say that the property is worth whatever the market will bear. Is there a more rigorous method? I have a little calculator that can calculate the theoretical rental that you must charge to pay for the cost of a house. It is only really for entertainment but it gives you a perspective on the disparity between rental charges and real housing costs. When I try some figures it shows that rentals are usually far too low to cover the real costs. Are rents too low or house prices too high? In a rising property market capital gains can make up for the shortfall. But what happens if prices fall? Have fun!
Subscribe to:
Post Comments (Atom)
Thanks for that calculator. I used it before looking at New York new homes.
ReplyDeleteDoes the calculator factor in many considerations? I'm looking at a property with its own pipe bursting equipment, and that has to increase its value.
ReplyDeleteRenting a vacation home provides a lot of privacy, freedom and more comfort than a hotel room. Condo Rentals.
ReplyDeleteI used a similar calculator when I was renting one of these Bulle Rock homes. It really did help me a lot in doing finances.
ReplyDeleteI agree to what you say in your blog. Thanks for the updates
ReplyDelete