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Property Investment Calculator
Property investment calculator is a term used to define an application that provides fundamental financial analysis underpinning the purchase, ownership, management, rental and/or sale of real estate for profit. Property investment calculators are typically driven by mathematical finance models and converted into source code. Key concepts that drive property investment calculators include returns, cash flow, affordability of financing, investment strategy, equity and risk management. Calculations Here are some of the calculations that one may expect to see from a property investment calculator along with definitions. # Cash on cash return – Cash flow in year 1 divided by cash invested in the property. # Equity build up rate – Increase in equity in year 1 from mortgage principal payments divided by cash invested in the property. # Capitalization rate – Net operating income (NOI) divided by property's asset value. # Gross rent multiplier – The ratio between a rental p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general."Real estate": Oxford English Dictionary online: Retrieved September 18, 2011 In terms of law, ''real'' is in relation to land property and is different from personal property while ''estate'' means the "interest" a person has in that land property. Real estate is different from personal property, which is not permanently attached to the land, such as vehicles, boats, jewelry, furniture, tools and the rolling stock of a farm. In the United States, the transfer, owning, or acquisition of real estate can be through business corporations, individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S. state. History of real estate The natural right of a person ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debt To Assets Ratio
Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt. It is the ratio of total debt ( short-term and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as ' goodwill'). : or alternatively: : For example, a company with in total assets and in total liabilities would have a debt ratio of 25%. Total liabilities divided by total assets or the debt/asset ratio shows the proportion of a company's assets which are financed through debt. If the ratio is less than 0.5, most of the company's assets are financed through equity. If the ratio is greater than 0.5, most of the company's assets are financed through debt. Companies with high debt/asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wholesaling
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In general, it is the sale of goods in bulk to anyone, either a person or an organization, other than the end consumer of that merchandise. Wholesaling is buying goods in bulk quantity, usually directly from the manufacture or source, at a discounted rate. The retailer then sells the goods to the end consumer at a higher price making a profit. According to the United Nations Statistics Division, ''wholesale'' is the resale of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort, and grade goods in large ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real-estate Developer
Real estate development, or property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others. Real estate developers are the people and companies who coordinate all of these activities, converting ideas from paper to real property. Real estate development is different from construction or housebuilding, although many developers also manage the construction process or engage in housebuilding. Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint venture, create, imagine, control, and orchestrate the process of development from the beginning to end.New York Times, March 16, 1963, "Personality Boom is Loud for Louis Lesser" Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. Typically, developers purchase a t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Off Plan Property
Off-plan property is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early adopters as developments so that the purchaser can secure more favorable finance terms from their lenders Property investors or property speculators purchase off-plan property with the aim of making substantial capital gains. This financial return may occur because developers who sell off-plan property often offer financial incentives or discounts to early adopters. In addition, there may be an opportunity for capital growth in a rising market and with a development cycle of typically 12–24 months. Off-plan property is typically deemed attractive if there is a high level of infrastructure in the immediate area such as a new university or expresses roads, either already built or due to be built within the next few years. Properties sold before they are constructed or completed are referred to as pre-sale properties or pre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Rating For Real Estate
An investment rating of a real estate property measures the property’s risk-adjusted returns, relative to a completely risk-free asset. Mathematically, a property’s investment rating is the return a risk-free asset would have to yield to be termed as good an investment as the property whose rating is being calculated. The underlying drivers for property ratings are the dividends (net Earnings before interest and taxes, operating income) and capital gains over a certain holding period, and their associated risks or variances. Similar to other financial ratings developed for mutual funds and stocks, it can be assumed that investors have Risk aversion, constant relative risk aversion over the wealth derived from other sources and from their investments. For simplicity, it can also be assumed that the investment return is not correlated with other sources of wealth but represents 100% of the investor's wealth. A property’s investment rating is then a transformation of the risk-adju ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Flipping
Flipping is a term used to describe purchasing a revenue-generating asset and quickly reselling (or "flipping") it for profit. Within the real estate industry, the term is used by investors to describe the process of buying, rehabbing, and selling properties for profit. In 2017, 207,088 houses or condos were flipped in the US, an 11-year high. In the United Kingdom, "flipping" is used to describe a technique whereby Members of Parliament were found to be switching their second home between several houses, which had the effect of allowing them to maximize their taxpayer funded allowances. Types Wholesaling and assigning a contract Wholesalers make a profit by signing a contract to purchase a property from a seller and then entering into an agreement with a third party to sell their role of buyer in the contract to an end buyer. All rights to the original purchase contract are assigned to the new buyer and the new buyer pays an "assignment fee" to the wholesaler in order to gai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mortgage Calculator
Mortgage calculators are automated tools that enable users to determine the financial implications of changes in one or more variables in a mortgage financing arrangement. Mortgage calculators are used by consumers to determine monthly repayments, and by mortgage providers to determine the financial suitability of a home loan applicant. Mortgage calculators are frequently on for-profit websites, though the Consumer Financial Protection Bureau has launched its own public mortgage calculator. The major variables in a mortgage calculation include loan principal, balance, periodic compound interest rate, number of payments per year, total number of payments and the regular payment amount. More complex calculators can take into account other costs associated with a mortgage, such as local and state taxes, and insurance. Mortgage calculation capabilities can be found on financial handheld calculators such as the HP-12C or Texas Instruments TI BA II Plus. There are also multiple free ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Subprime Mortgage Crisis
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the collapse of a housing bubble, leading to mortgage delinquencies, foreclosures, and the devaluation of housing-related securities. Declines in residential investment preceded the Great Recession and were followed by reductions in household spending and then business investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines. The housing bubble preceding the crisis was financed with mortgage-backed securities (MBSes) and collateralized debt obligations (CDOs), which initially offered higher interest rates (i.e. better returns) than government securities, along with attractive risk ratings from rating agencies. While elements of the crisis first became more vi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Rate Of Return
Internal rate of return (IRR) is a method of calculating an investment’s rate of return. The term ''internal'' refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate of a future annual rate of return. Applied ex-post, it measures the actual achieved investment return of a historical investment. It is also called the discounted cash flow rate of return (DCFROR)Project Economics and Decision Analysis, Volume I: Deterministic Models, M.A.Main, Page 269 or yield rate. Definition (IRR) The internal rate of return on an investment or project is the "annualized effective compounded return rate" or rate of return that sets the net present value of all cash flows (both positive and negative) from the investment equal to zero. Equivalently, it is the interest rate at which the net present value ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Deprecation
In several fields, especially computing, deprecation is the discouragement of use of some terminology, feature, design, or practice, typically because it has been superseded or is no longer considered efficient or safe, without completely removing it or prohibiting its use. Typically, deprecated materials are not completely removed to ensure legacy compatibility or back up practice in case new methods are not functional in an odd scenario. It can also imply that a feature, design, or practice will be removed or discontinued entirely in the future. Etymology In general English usage, the infinitive "to deprecate" means "to express disapproval of (something)". It derives from the Latin verb ''deprecari'', meaning "to ward off (a disaster) by prayer". In current technical usage, for one to state that a feature is deprecated is merely a recommendation against using it. It is still possible to produce a program or product without heeding the deprecation. Software While a deprecated ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profit (real Property)
A profit (short for ''profit-à-prendre'' in Middle French for "advantage or benefit for the taking"), in the law of real property, is a nonpossessory interest in land similar to the better-known easement, which gives the holder the right to take natural resources such as petroleum, minerals, timber, and wild game from the land of another. Indeed, because of the necessity of allowing access to the land so that resources may be gathered, every profit contains an implied easement for the owner of the profit to enter the other party's land for the purpose of collecting the resources permitted by the profit. Creation Like an easement, profits can be created ''expressly'' by an agreement between the property owner and the owner of the profit, or by ''prescription'', where the owner of the profit has made "open and notorious" use of the land for a continuous and uninterrupted statutory period. Types A profit can be ''appurtenant'' (owned by an adjacent landowner, and tied to the use ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
