1, rental rate of return method
Formula: (after-tax monthly rent-monthly mortgage payment) × 12/ (down payment+forward mortgage payment).
Advantages: Considering the rent, price and the main investment in the early stage, it is more applicable than the rental return analysis method, and can estimate the length of the capital recovery period.
Shortcomings: Time effects of other inputs and funds in the early stage are not considered. Can not solve the cash analysis problem of multiple sets of investments. And because of its inherent one-sidedness, it can not be used as an ideal investment analysis tool.
2, rental yield analysis method
Formula: (after-tax monthly rent-monthly property management fee) × 12/ Total purchase price The greater the ratio calculated in this way, the more worthwhile the investment.
Advantages: Considering the rent, house price and their relative relationship, it is a simple method to choose "excellent real estate".
Insufficient: Not considering all the inputs and outputs, not considering the time cost of funds, so it cannot be used as a comprehensive basis for investment analysis. Cannot provide specific analysis for mortgage payment.
3. Internal rate of return method
The formula of real estate investment is: accumulated total income/accumulated total investment = monthly rent × accumulated rent months during the investment period/(mortgage down payment+insurance premium+deed tax+overhaul fund+other investments such as furniture+accumulated mortgage payment+accumulated property management fee) = internal rate of return.
The above formula takes mortgage as an example. Interest payment and agency fees are not considered. Accumulated income and investment are considered during the investment period.
Advantages: Internal rate of return method takes into account all factors such as investment and income and cash flow during the investment period. Can be used in combination with the rental rate of return. The internal rate of return can be understood as deposit in banks, but the interest rate of banks in China is calculated according to simple interest, while the internal rate of return is calculated according to compound interest.
Deficiency: judging the investment value of real estate by calculating the internal rate of return is based on today's data to infer the future, and the rise and fall of future rent is unknown.
4. Simple international assessment method
The basic formula is: if the annual income of real estate × 15 = the purchase price of real estate, it is considered that the real estate is worth the money. This is a simple method for an international professional financial management company to evaluate the investment value of real estate.
Is the investment value of commercial real estate great?
1, with less investment risk.
Investing in commercial real estate can enjoy the benefits brought by the appreciation of its assets, and daily life and work will not be affected. Stock trading and buying funds should be stared at every day, always paying attention, for fear of falling, which is both laborious and troublesome. No problem going up. Once stuck, it will implicate the whole family and make people physically and mentally exhausted. The house is tangible and tangible, and it is a real thing. Moreover, commercial real estate can bring double benefits. Rent can be collected every year, and the rent is much higher than the bank interest. And with the increase in rents, commercial real estate is also increasing in value.
The older you get, the more valuable you are.
Second-hand houses will be cheaper than new houses in the same lot when they are sold, because there are depreciation factors in second-hand houses. This is not the case with commercial real estate. Generally, a mature business circle needs two to three years to cultivate. Once the business circle is mature, the rent of commercial real estate will increase year by year, and commercial real estate will become more and more valuable. Therefore, there is no saying that second-hand houses need depreciation. In addition, the second-hand housing market is mainly residential, and there are few second-hand commercial real estate. Because it is already a mature commercial real estate, few people are willing to sell it, so the older the commercial real estate, the more valuable it is.
3, high stability
Commercial real estate has a service life of more than several decades. Buying commercial real estate will not only keep the price down, but also be more valuable. For commercial real estate, a high-value fixed asset, people tend to buy up instead of down. Although it costs hundreds of thousands to buy commercial real estate in one hand, the money has not disappeared, just changed from paper money to fixed assets. When money is needed, rich rents or commercial real estate are sold every year, and the money comes back. People who buy commercial real estate complain that house prices are too high. In fact, they hope that house prices will continue to rise after buying a house.