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Doing The Sums

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  • Doing The Sums

    Hi. This is my 1st post on my favourite website and I am really hoping it goes through. Am a new investor & just wondering how you guys do the sums on a property that is for sale at say $150,000, you know it is a good buy, but the agent tells you that land is valued @ $25,000, building @ $75,000, chattels @ $5,000, total= $105,000. What I am trying to say is do you always crunch the figures based on rateable value, or, if I am prepared to pay $150,000 is there a rough formula you can use to arrive at your own land, building & chattels values prior to doing the sums? Hope this doesn't seem like a silly question.

  • #2
    Hi Gary

    Welcome to Propertytalk.

    One question: what is the expected rent for the rental, please?

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


    • #3
      Hi GaryM

      A warm welcome to PT.

      You need to understand basic terms such as yield and cashflow, which are covered in the following thread.

      First offer on IP. What do you think
      A forum for anyone who is new to property investment and would like to ask some basic questions. We are here to help!

      Feel free to fire more questions.
      Last edited by fudosan; 01-09-2005, 10:43 PM.