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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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2 comments

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