Real Estate Investment Model

This is simplified model for everybody to understand key concept of investment in property.

🏢 What is included in this evaluation:

𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀

Assumptions used in model like:
→ Year of investment
→ Currency
→ Expected annual appreciation growth in fair market value of property
→ Discount rate
→ Long term growth rate
→ Corporate income tax

𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝗻 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆

Schedules of property price, brokerage fee, renovation and improvement and other investments

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴

→ Structure of financing
→ Loans
→ Own funds

𝗜𝗻𝗰𝗼𝗺𝗲

Schedule of all type of revenues in coming years

𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀

Schedule of all type of expenses in coming years

𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 𝗿𝗮𝘁𝗲

Calculation cost of capital as appropriate discount rate foe project evaluation

𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻

Crucial sheet about outcome of project evaluation showing key parameters like net present value, payback period

𝗜𝗥𝗥

Showing expected annualized rate of return on a particular investment or project