There are a range of suburbs and different types of properties to invest in in Auckland. The trouble is trying to compare them from a investing point of view. It is this problem that I am wanting to discuss in this thread.
My hypothesis' are:
To test my hypothesis I have prepared a spreadsheet that calculates the return based rent and capital growth(based on land values). The spreadsheet calculator is based on 5 properties I found off Trademe in Auckland.
I would like to get some feedback on weather what I am trying to do is viable and any improvements I could make.
Ihttp://bit.ly/107kB7D
My hypothesis' are:
- Capital growth comes solely from the increase land values.
- By factoring capital growth based on land values we can make returns comparable between properties.
- Central suburbs have the same percentage increase in land values as outer suburbs. They appear to have high capital growth rates because land values make up a larger proportion of the properties value.
- Houses have the same percentage increase in land values as units/townhouses. They appear to have high capital growth rates because land values make up a larger proportion of the properties value.
To test my hypothesis I have prepared a spreadsheet that calculates the return based rent and capital growth(based on land values). The spreadsheet calculator is based on 5 properties I found off Trademe in Auckland.
I would like to get some feedback on weather what I am trying to do is viable and any improvements I could make.
Ihttp://bit.ly/107kB7D
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