Converted Lurker Report post Posted April 2, 2006 Calculate the future rents, subtract mortgage payments, taxes and other costs, factor in a rate of return of about 6 percent, and that should be the proper price of a house or condo, the economists said. http://firstrung.co.uk/articles.asp?pageid...articlekey=1605 Quote Share this post Link to post Share on other sites
padders Report post Posted April 2, 2006 A good estimate is to consider 10 months rent with the other 2 months going to repairs/voids etc. So 10 months rent you need a 6% return. That's paying with cash outright for the place. If you are paying of a mortgage as well then that changes it further. Quote Share this post Link to post Share on other sites
Converted Lurker Report post Posted April 2, 2006 I consider the 'value' of a home to be something like 10 to 12 times what the annual rent would be. When I see asking 'prices' of around 20 times what the annual rent is then you see how OVERVALUED they are - after all, prices based on peoples expectations and not the true worth. That's why BTL muppets will be hit so hard because they know the price of everything and the value of nothing Did you catch the "Ireland is 100 times news earlier this week? The image is of the Blarney castle http://firstrung.co.uk/articles.asp?pageid...1575&cat=44-0-0 Quote Share this post Link to post Share on other sites
