Need the help of Math Geniuses! I'm trying to find a formula where the output is the ideal property price given the rent. In other words the rent is the variable and the output is the ideal property's price. Assuming that it has to give 1,000 NET profit per month. After paying for service charges (say another 3,000 per month) and the mortgage. Clearly the mortgage duration is NOT a variable. Let's assume it is for 20 years. And the interest rate is also not optional. Let's say it's 3.55% for this exercise. I can't work out this formula for the life of me. Can you please help?
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Find the Ideal Property Price
- Thread starter redblasko
- Start date
D
Deleted member 4993
Guest
Please show us what you have tried and exactly where you are stuck.Need the help of Math Geniuses! I'm trying to find a formula where the output is the ideal property price given the rent. In other words the rent is the variable and the output is the ideal property's price. Assuming that it has to give 1,000 NET profit per month. After paying for service charges (say another 3,000 per month) and the mortgage. Clearly the mortgage duration is NOT a variable. Let's assume it is for 20 years. And the interest rate is also not optional. Let's say it's 3.55% for this exercise. I can't work out this formula for the life of me. Can you please help?
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Please share your work/thoughts about this assignment
Do you have a formula that you are referring to?
D
Deleted member 4993
Guest
Please show us how the equation above was used and the result/s you got.I've tried using the cash on cash returns formula ccr=yearly rent - service charges - mortgage payments / 20% of Property Price.