Outline ·
[ Standard ] ·
Linear+
Property holding period calculations
|
apalexar
|
 Nov 22 2019, 07:20 PM
|
|
QUOTE(trainmaster @ Nov 22 2019, 03:12 PM) Who can validate that calculation? You don’t need to calculate the interest you pay in the mortgage? U have to consider how much you will be able to sell your property 10 years down the road also, in this case I assume conservative ie house maintains at its price. Tenant is covering the interest portion for you Why still ask here while it seems like you have own way to calculate it? |
|
|
|
|
|
apalexar
|
Nov 23 2019, 11:56 PM
|
|
|
4~5 years, assuming you're able to sell it at min 850k price that time.
I'm assuming your loan interest is 4.2% and 35 years loan tenure.
This post has been edited by apalexar: Nov 23 2019, 11:58 PM
|
|
|
|
|
|
apalexar
|
Nov 25 2019, 07:29 AM
|
|
|
QUOTE(trainmaster @ Nov 24 2019, 11:32 PM) May I see how you calculate? Sorry my bad, miscalculation as I use 850k in my calculation but actually should be 720k since 130k is your own money. Now it should be on 12th or 13th year in order to generate profit of 20%. My calculation is simple, your loan is 720k and assuming that you are getting rental income every months which is able to cover up the monthly installment, on year 12th your loan balance is RM578,964.48 (calculation using loan calculator) and if you're able to sell it on price min 850k, it will be like 850k - 130k (self money) - loan balance |
|
|
|
|
|
apalexar
|
Nov 25 2019, 07:03 PM
|
|
|
QUOTE(trainmaster @ Nov 25 2019, 09:35 AM) Very good, you have by far the best answer (most accurate) in this thread. See, buying property will only give you 20%/13=1.53% of return per annum (Conservative approach, rental covers installment case. Price hardly appreciates in ~10 years time which is quite realistic in today’s expensive property market). Awake!! That's only the case if you are just able to sell it for 850k price, if able to sell at 1.++M at year 13th or earlier then it's another story, so.. still based on your investment unit ong or not |
|
|
|
|
Quote
0.0156sec
0.39
6 queries
GZIP Disabled