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Real Estate Economics and Budgeting August 28, 2008

Posted by DustinRJay in Calgary real estate, valuation models.
Tags: , , ,
4 comments

I think having a budget that you are comfortable with is critical to any investment strategy.  By laying out the cash flows, and expected asset values you can get a feel for various economic parameters such as:

  • Net present value comparison of various strategies
  • Rate of return
  • Sensitivity to various economic parameters such as interest rates and inflation
  • Affordability or liquidity risks

I put together a budget of various shelter scenarios:

  • Renting
  • Renting and Investing the Difference
  • Buying
  • Investing

I hope you find this budget useful as I believe having a well laid out plan is extremely important.  Having a solid budget in place will create long term value for investors and create a successful financial environment for your family.

I strongly encourage people to come up with their own budgets, and perform due diligence before making any investment decision.

The budget excel spreadsheets that I came up with are here:

( Budget – Office 2000 version \ Budget -Office 2007 version )

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