Article: Property Investment ? How To Calculate Rental Returns
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Property Investment ? How To Calculate Rental Returns
Before purchasing an investment property for rental purposes it?s always a good idea to calculate whether it will be cash flow positive or cash flow negative. That is, will the property generate an income (positive) or will it require a monthly cash injection (negative)?
This article will outline and briefly describe many of the main Purchasing and Annual Holding Costs incurred when buying a rental property. Please keep in mind that these items will vary from country to country and they do not take into account personal tax implications.
- Purchasing Costs
Purchase price ? the agreed price for which the property will exchange hands.
Renovation Costs ? money budgeted for renovations prior to the property been made available for ...
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