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!

5 comments:

  1. Thanks for that calculator. I used it before looking at New York new homes.

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  2. Does 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.

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  3. Renting a vacation home provides a lot of privacy, freedom and more comfort than a hotel room. Condo Rentals.

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  4. I used a similar calculator when I was renting one of these Bulle Rock homes. It really did help me a lot in doing finances.

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  5. I agree to what you say in your blog. Thanks for the updates

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