On this video I provide an explanation for The right way to calculate Go back on Funding [ROI] and alternative figures/forumulas on a quality apartment/turn. I provide an explanation for learn how to calculate the benefit and benefit % later all prices, the cash invested, the cash returned, the benefit in this and the Go back on Funding or ROI.
Benefit and benefit % 00:23 – 04:02
To calculate this you’ll want quality price, alternative prices reminiscent of prison charges and refurb prices and likewise a offered worth
Cash invested 04:02 – 04:24
To calculate this you’ll want the warehouse (now not the quality price) and alternative prices reminiscent of prison charges and refurb prices.
Cash returned 04:24 – 04:37
To calculate this you wish to have the sale worth, much less the loan prices.
Money benefit 04:37 – 05:20
To calculate this you’ll whip the cash invested clear of the cash returned.
Go back on Funding (ROI) 05:20 – 05:52
For this you’re going to want the benefit and cash returned. This provides you with the Go back on Funding or ROI in decimal price which you’ll be able to multiply by means of 100 to procure the share price.
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Great way of explaining this subject, mate! Rightmove's records of sold properties are such a valuable resource when trying to value a property.
Hi Thomas, another great video. One question I have is that when you flip a property, how do you get around having to pay ERC on mortgages? I haven't come across a mortgage that doesn't have one as yet.
I haven't tried flipping. All my properties are BTL, but I am not taking advantage of the capital gains allowance and would like the cash profit.
Another great video, keep up the good work
Hi Thomas. Do you just invest in BTL and HMO’s or do you invest in commercial property, flats or anything else?
Nice video, was abit confused about the first part of the video where you was talking about sales price etc. But I understand how to calculate the basic ROI on a BTL property.
Awesome video Thomas!! This was really helpful 🔥
Please let me know if you found this tutorial useful and what other videos you’d like to see in the future