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Financial Calculators For Making Real Estate Investment Decisions February 13, 2008

Posted by DustinRJay in Calgary real estate, rental yields.
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I have found the following two calculators useful for making decisions regarding whether or not it is a good time to buy or sell real estate.  Some good test examples are:           

  • What is a fair market value for a house given its rent and an investment horizon of 10 years? e.g. No difference in wealth between renting and owning over a period of 10 years.  What about 30 years?  What about 5 years?
  • How much does increasing or decreasing interest rates by 2 percentage points affect the economics of buying vs. renting?
  • Develop three cases using conservative values, best guess values and upside values for owning vs. renting.  How do they compare?
  • Would a rental property have a greater return than safe investments like bonds or GIC’s?

The calculators are available at:

Rent Vs. Buy Calculator

Rent Vs. Sell Calculator

     

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Comments»

1. chamberlaingroup - February 14, 2008

Thanks for these Radley… They should become very useful!

2. Miguelito - February 24, 2008

Fantastic blog!

And a great resource you’ve linked to in this post.

I just landed a job in Calgary and will be moving there in the next few months. I’ve been dreading getting into the real-estate market. At least my wife agrees with me when I say that, “Sometimes, it’s better to rent than to own.”

We’ll wait for the correction before we buy.


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