CoffeeBrew
Registered User
- Messages
- 40
A guy bought a house for investment at 425,000. The house was sold one year later for about 465,000.
Of course, what to people say ?
"Brilliant the guy made 40,000 in one year!!"
"Genius ! buy and sell quickly to make a killing!!"
I doubt this very much myself. Whatever his reasons for selling I think he would be lucky to exit without a loss when you consider all the initial outlays.
But it made me think about how many people have a very simplified notion of profit when it comes to property investment and how many must enter the market with a type of blind faith that only the luck of a rapidly rising housing market over time will reward.
We are now told we are entering into a whole new game - the much hoped for soft landing (as opposed to a property crash).
Stalling house prices, ever increasing supply of new homes, falling rents and rising interest rates over the coming years do not bode well for property investment - but how to demonstrate this under different possible scenarios ?
Property calculators like [broken link removed] are great but AFAIK do not allow you to model changing rents or rising interest rates. Are there more sophisticated calculators out there ?
I wouldn't mind trying to implement more complete scenario models if I had the basic equations etc as I consider myself a dab hand
at the ol' programming and data analysis. Anyone got any information or links in this area ?
Of course, what to people say ?
"Brilliant the guy made 40,000 in one year!!"
"Genius ! buy and sell quickly to make a killing!!"
I doubt this very much myself. Whatever his reasons for selling I think he would be lucky to exit without a loss when you consider all the initial outlays.
But it made me think about how many people have a very simplified notion of profit when it comes to property investment and how many must enter the market with a type of blind faith that only the luck of a rapidly rising housing market over time will reward.
We are now told we are entering into a whole new game - the much hoped for soft landing (as opposed to a property crash).
Stalling house prices, ever increasing supply of new homes, falling rents and rising interest rates over the coming years do not bode well for property investment - but how to demonstrate this under different possible scenarios ?
Property calculators like [broken link removed] are great but AFAIK do not allow you to model changing rents or rising interest rates. Are there more sophisticated calculators out there ?
I wouldn't mind trying to implement more complete scenario models if I had the basic equations etc as I consider myself a dab hand
at the ol' programming and data analysis. Anyone got any information or links in this area ?