Market Value: If you bought a home below the market value or if your purchase will appreciate by the time you close (in case of new construction) then Market Value will generally be more than the purchase price.Cash Invested = Amount of Money used for down payment
Depreciable Value = Total Cost of property – Value of the Land (e.g. Purchase Price = $200K and the price of the land the property sits on = $10K; then Depreciable Value = $190K)
Term (years): Number of Years on Mortgage (5 yrs, 10,yrs, 15 yrs, 30 yrs, etc)
Closing Cost: Generally 5% of purchase price / 2% if cash purchase. See calculator
Annual Rent increase: Varies by location, use a modest 5% for your calculation
Occupancy Rate: The percentage of time the property will be rented during the total time you will own the property. A conservative percentage will be 70%.
Annual Home Owners’ Association Fee: HOA fees vary; please use specific to the subdivision you are buying.
Annual increase in expenses: 5% is a good approximation.
Duration of Analysis: This is the amount of years before you sell the property or whatever amount you will like to uses for analysis. So for example if you mortgage was for 15 years and you decide to sell after 10 yrs; then you Duration will be 10 years.
Realtor fees: This is the percentage of the listing price that the Brokerage will charge to sell your home. There is no fixed percentage for this service, but the market average at this point is around 6%.
Annual Appreciation Rate: Varies by location, hence when you are looking to purchase always keep the golden rule in mind…Location..Location…Location! For example, if you purchased in the Lake Nona are you may see a 10% appreciation based on the Medical City being built out by 2017. (This is just my analysis and should not be taken as the basis for your calculations, please conduct you own research!)
Marginal Tax Bracket & Long Term Capital Tax: Check with your accountant for the specific percentage you will pay.
Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.