How to know if the property is overpriced or not:- If net rental yield of the property is 4-6%, it's appropriately priced If net rental yield is below 4%, then it's overpriced If net rental yield is above 6%, it's underpriced If net rental yield is above 10%, it's too good to be true offer and needs a thorough evaluation Note:- Always have conservative estimates, not overambitious estimations Net Rental yield is calculated after deducting the annual maintenance charges of the property Consider average rental prices of that area for similar properties which are aged 10+ years. This way one can get correct average rental yields over a period of time The analysis would be only for projects less than 5 years old, not older properties
Fixed deposit in developed world gives 3-5% return on capital without any capital growth. Any property which gives net rental yield of over 5% with stable capital appreciation is very good property to invest in
Thank you, Sandeep, for putting out such great content and for your time today to go through the details. It was extremely helpful.
How to know if the property is overpriced or not:-
If net rental yield of the property is 4-6%, it's appropriately priced
If net rental yield is below 4%, then it's overpriced
If net rental yield is above 6%, it's underpriced
If net rental yield is above 10%, it's too good to be true offer and needs a thorough evaluation
Note:-
Always have conservative estimates, not overambitious estimations
Net Rental yield is calculated after deducting the annual maintenance charges of the property
Consider average rental prices of that area for similar properties which are aged 10+ years. This way one can get correct average rental yields over a period of time
The analysis would be only for projects less than 5 years old, not older properties
How’s impz?
Fixed deposit in developed world gives 3-5% return on capital without any capital growth. Any property which gives net rental yield of over 5% with stable capital appreciation is very good property to invest in
A good way to ensure that rentals are priced appropriately is to do a reality check!!! 😂😂
why you so bearish ?