Connect with us
Relevant Tips on How to Calculate ROI on Investment Property Relevant Tips on How to Calculate ROI on Investment Property

International

Relevant Tips on How to Calculate ROI on Investment Property

Published

on

Investments will always be one of the surest ways to multiply your income, and real estate, particularly rental properties offer the safest means to earn extra income. Appreciation over the long term, leniency in taxes, and guaranteed cash flow every month is why most rental property investors opt for this form of investment.

Many people have identified getting the right property and if it will pay off in good time as some of the challenges they face while investing in real estate.  We’ve compiled these tips on how to calculate an investment property’s ROI to help you.  

The ROI is an accounting formula that describes how much profit has been made from an investment. Calculating ROI on rental properties can help you determine how much you can gain as profit in rent over a long period. This return is expressed as a percentage. You can also access more information on rental properties’ ROI by checking https://theshorttermshop.com/roi-rental-property/.

Different Types of Properties to Invest In

If you’re a newbie in the rental investment business, there are lots of properties to start your investment journey with, such as duplexes, townhouses, single-occupant, and family occupant homes.

A major advantage is that you can choose whether you want the rental on a short or long-term basis, from six months to a year. You can also collect rents monthly.

How to Get ROI on a Rental Property

Let’s get down to how to calculate the ROI on a rental property. There’s a formula to give you a quick percentage of what to expect:

ROI = (Profit on Investment – Costs incurred) / costs incurred

Say you made an investment of $100,000 for a rental property, and after 3 years, you sold it for $220,000, your ROI will be:

(180,000 – 100,000) / 100,000 = 0.8

The ROI for that property is 80 percent. Alternatively, you can make use of a dedicated investment property calculator to take away the stress.

The ROI for a rental property doesn’t rely solely on the buy and sell price. Some factors involved in closing a house must be included to get the real-time figure. Miscellaneous figures like closing costs, renovation expenses should be considered. 

Suppose you hired a property manager, the wages should also be included before calculating the ROI. 

Once these extra fees have been determined and laid out, calculating the ROI on an investment property will be dependent on the mode of payment for the property. 

You can either get a rental property by financing it or paying only cash.

ROI on Financed Payment

A financed sale involves going to the banks to finance the project. You’ll need to include the mortgage costs while calculating your ROI.

Assuming the purchase price is $100,000 and the property is sold for $180,000 after 4 years. The calculation will be:

Initial price: $100,000 

Part-payment: $25,000

Price sold: $120,000

Profit made: $20,000

Mortgage payment: $3,025

Tax cash flow deductions: $6,000 from rentals, which is 6,000 – 3,025 = $2,975

After 4 years, $2,975 x 4 = $11,900

Then include the $20,000 as profits for final sale. 

$20,000 + $11,900 = $31,900

ROI = (31,900 – 25,000) / 25,000 = 27.6 percent. 

ROI on Cash Payment

Going with the parameters set for the financed payment:

Initial price: $100,000

Price sold: $120,000

Profit made: $20,000

Mortgage payment: $0

Tax cash flow deductions: $6,000

After 4 years, $6,000 x 4 = $24,000

Add profits from the  final sale, $20,000

$20,000 + $24,000 = $44,000. 

Add up the cash investment, $100,000

ROI = (144,000 – 100,000) / 100,000 = 44. 

A comparison of the two methods shows that the cash method pays better than the other method.

Suppose you seek how to calculate ROI on investment property, there are other methods available including Net Operating Income, Cash-on-Cash Return, Internal Rate of Return, and Cap Rate.

Why You Need to Know the ROI of Your Potential Rental Investment

Property investment has its benefits. Its value increases at a higher rate than inflation, with normal cash flow from rent payments, tax benefits, as well as depreciation cuts that you can’t get from any other investments. 

There’s no set figure for ROI on rental properties. Different investors take risks based on the size of their financial portfolio, which is why knowing your ROI and what you stand to gain is essential. Some experts believe that a good ROI starts above 10 percent. This does not mean that ROI of between 5 to 10 percent is bad.

With ROI, you can have a good idea of what you’ll get out of your rental property, for the desired period you pick. It also helps determine the expenses that’ll be incurred during the sale of the property. A good advantage is that a property value appreciates over the years, it can’t depreciate. 

In addition, real estate experts also estimate that the average real estate return on investment is about 10 percent, after putting certain factors like economic inflation cost into consideration. 

ROI Complications

For a simple formula that can be used to calculate your expected profit, as well as the costs that may come up, certain issues may arise that can overhaul the entire investment. 

Some of these complications majorly arise in cases when an investor uses the financing option, such as a second mortgage taken on the property and the interest piles up. Other issues may be the high cost of maintenance, utility bills for the property, as well as taxes. 

Summary

As a real estate investor, knowing how to calculate ROI on investment property is essential for your ride to financial prosperity. As stated, real estate is still one of the surest and reliable ways to invest right, and knowing your ROI sets you on that part. ROI may be a bit complex to calculate, especially when starting out as a newbie, but will be relevant in the long run.

Leonardo, a visionary entrepreneur and digital innovator, is the proud owner and mastermind behind chatonic.net. Born and raised in the heart of the Silicon Valley, he has always been fascinated by the potential of technology and its ability to transform the way we communicate and interact with one another.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

International

Taipei Self-Driving Gharry

Published

on

Are you ready to embark on an unforgettable journey through the vibrant streets of Taipei? Well, get ready to buckle up and explore the city like never before, because we’ve got an exciting ride in store for you! Introducing the Taipei Self-Driving Gharry – your ticket to freedom, fun, and discovery.

Forget about tour guides and rigid itineraries, because with a Gharry at your disposal, you’re the master of your own adventure. Whether you’re a solo traveler or exploring with friends and family, this unique experience promises to be a thrilling escapade you won’t soon forget. So, let’s hit the road and dive into the heart of Taipei, where hidden gems, mouthwatering delicacies, and fascinating culture await your eager exploration.

Introducing Gharrys

pexels adrien olichon 2537607

What is a Taipei Self-Driving Gharry?

Imagine a charming blend of tradition and technology – that’s what a Self-Driving Gharry is all about. Originating from the iconic horse-drawn carriages of yesteryears, the modern Gharrys are electric-powered vehicles with a vintage touch. Equipped with user-friendly navigation systems, they are perfect for the independent traveler seeking a unique experience.

Why Choose a Gharry over Conventional Rental Cars?

While rental cars are an option, a Gharry adds a touch of whimsy and excitement to your exploration. Unlike conventional cars, Gharrys are designed for urban adventures, allowing you to meander through narrow alleys and lively markets, where larger vehicles might not dare to tread.

The Joy of Driving

a 10

Freedom to Roam at Your Leisure

With a Gharry at your disposal, the city becomes your playground. No strict schedules, no rushing to catch buses – just the freedom to stop wherever your heart desires. Whether it’s a picturesque park or a roadside café, the joy of driving a Gharry lies in the spontaneity it offers.

Embracing Serendipitous Discoveries

Ever stumbled upon a hidden gem while strolling through a city? Now, imagine the thrill of discovering such gems from the comfort of your Gharry. Embrace serendipity and let the city unfold its secrets as you navigate its charming neighborhoods.

Exploring Hidden Gems

Taipei Self Driving Gharry

Off-the-Beaten-Path Destinations

While Taipei boasts popular landmarks, there’s so much more beyond the obvious. Venture off the beaten path with your Gharry to uncover quaint temples, picturesque viewpoints, and local artisan markets that offer authentic experiences.

Serene Nature Escapes

Escape the urban hustle for a while and retreat to nature’s haven. Taipei and its surroundings are blessed with lush landscapes and serene parks. Drive your Gharry to a tranquil oasis, immerse yourself in nature, and recharge your spirit.

Gastronomic Delights

marius blomlie reset 1

Savory Treats on Wheels

Taipei’s culinary scene is a feast for the senses, and what better way to relish it than through a Gharry? Park near famous food stalls, where aromas beckon you to savor delicious street delicacies, making every meal a memorable adventure.

Food Truck Adventure

The city’s food trucks are a culinary carnival on wheels. Navigate through a gastronomic maze, sampling various cuisines as you go. From savory to sweet, traditional to fusion – a food truck adventure is a treat for any food lover.

Cultural Immersion

pexels andrea piacquadio 787476

Temples, Traditions, and Tales

Taipei’s cultural heritage is rich and diverse, and a Gharry allows you to immerse yourself in this tapestry of traditions. Visit ancient temples, witness traditional ceremonies, and listen to fascinating tales passed down through generations.

Art and Architecture in Motion

The city’s art scene is as vibrant as its streets. Drive your Gharry to discover vibrant street art, modern architectural marvels, and art exhibitions that reflect Taipei’s artistic spirit.

Practical Tips

side view young man riding car 1

Preparing for Your Gharry Adventure

Before setting out on your Gharry adventure, ensure you have the necessary permits, licenses, and insurance coverage. Familiarize yourself with the navigation system, and don’t forget to carry a power bank for your devices.

Navigating Traffic and Parking

While Gharrys are nimble, city traffic can be daunting. Plan your routes, avoid rush hours, and embrace the art of patient driving. Parking in Taipei can be challenging, but with a Gharry, you can find creative spots to park and explore nearby.

Benefits of Self-Driving Gharrys

Get ready to fasten your seatbelts and experience the ultimate travel revolution – Taipei Self-Driving Gharry! These charming vehicles combine vintage vibes with modern technology, making them the coolest way to explore any city. Still not convinced? Well, hold onto your hats because we’ve got a list of benefits that’ll blow your mind and have you itching to hit the road:

  • Freedom on Wheels: Say goodbye to strict schedules and hello to spontaneity! With a Gharry at your disposal, you’re the captain of your adventure. Roam the city streets at your own pace, stop wherever you please, and make every moment count.
  • Off-the-Beaten-Path Exploration: Tired of tourist traps? Gharrys are your ticket to uncovering hidden gems that most visitors miss. Escape the crowds and venture into charming alleys, serene parks, and quaint neighborhoods that only the locals know about.
  • Gastronomic Delights: Foodies, rejoice! Gharrys are the perfect food-tripping companions. Park near famous food stalls, sample street delicacies, and indulge in a gastronomic journey like no other. From savory treats to sweet delights, your taste buds are in for a treat.
  • Cultural Immersion: Immerse yourself in the rich tapestry of the city’s culture and traditions. Visit ancient temples, witness traditional ceremonies, and experience the city’s vibrant art scene – all on wheels!
  • No Driving Stress: Don’t fret if you’re not an expert driver. Gharrys are designed for urban exploration, making them easy to handle even for beginners. Plus, their user-friendly navigation systems are a breeze to use.
  • Eco-Conscious Adventure: Do your part for the planet while having a blast! Gharrys are eco-friendly, running on electric power and emitting zero carbon emissions. It’s guilt-free exploration at its finest.
  • Flexibility and Convenience: Forget about waiting for public transportation or booking pricey tours. Gharrys offer the ultimate flexibility, allowing you to design your adventure exactly as you wish.
  • Capturing Picture-Perfect Moments: Every corner of the city is a potential photo op. With a Gharry, you can pull over and capture stunning snapshots whenever you come across a picture-perfect view.

So, what are you waiting for? The world of Self-Driving Gharrys is calling your name, ready to whisk you away on an adventure filled with freedom, fun, and unforgettable memories. Get behind the wheel and let the exploration begin.

How to Rent a Self-Driving Gharry in Taipei

Are you ready to embark on an epic adventure through the lively streets of Taipei? Well, you’re in luck because we’re about to spill the beans on how to rent a Taipei Self-Driving Gharry and unlock the city’s hidden treasures at your own pace. It’s as easy as pie, and we’ve got all the juicy details right here:

  1. Choose Your Rental Service: First things first, you’ll need to find a reputable Gharry rental service in Taipei. A quick online search will reveal several options, so take your time to compare prices, reviews, and available vehicle models. Look for a service that offers well-maintained Gharrys with user-friendly navigation systems.
  2. Check the Requirements: Before you get too excited, make sure you meet the rental requirements. Most rental services require drivers to be at least 21 years old and possess a valid driver’s license. Some may also ask for additional identification and a credit card for security purposes.
  3. Reserve Your Ride: Once you’ve found the perfect rental service, it’s time to make a reservation. Popular Gharrys tend to get booked quickly, especially during peak tourist seasons, so don’t wait until the last minute. Secure your ride in advance to avoid any disappointment.
  4. Pick-Up Location: Before you hit the road, confirm the pick-up location with the rental service. Some companies may have multiple pick-up points across the city, so choose the most convenient one for you.
  5. Be Prepared with Documentation: On the day of pick-up, don’t forget to bring all necessary documentation, including your driver’s license and any additional identification the rental service requires. It’s better to be safe than sorry, so double-check everything before leaving.
  6. Vehicle Inspection: When you arrive at the pick-up location, a representative from the rental service will guide you through a vehicle inspection. Take your time to inspect the Gharry thoroughly, noting any existing scratches or damages. It’s crucial to document these to avoid any disputes when returning the vehicle.
  7. Familiarize Yourself with the Gharry: Now that you’ve got the keys to your Gharry kingdom, take a moment to familiarize yourself with the vehicle’s features and navigation system. Ask the rental representative any questions you may have, ensuring you feel confident before hitting the road.
  8. Explore at Your Own Pace: With the formalities out of the way, it’s time to embark on your self-driving adventure! Remember, there’s no rush – take your time, enjoy the freedom to explore, and make unforgettable memories at every turn.
  9. Follow Traffic Rules and Parking Etiquette: While the Gharry is all about fun, safety should never be compromised. Obey traffic rules, be cautious of pedestrians and cyclists, and park in designated areas to avoid fines.
  10. Return the Gharry with a Smile: As your Gharry adventure comes to an end, return the vehicle to the rental service with a smile. Be sure to fill up the tank and return the Gharry in the same condition you received it to ensure a smooth and pleasant experience.

So, there you have it – a step-by-step guide on how to rent a Self-Driving Gharry in Taipei. Now, get ready to unleash your inner explorer and dive into the heart of the city, uncovering its secrets one adventure at a time.

Conclusion

Taipei is a city of wonders, where tradition and modernity dance in harmony. Embrace the spirit of exploration with a Self-Driving Gharry, and you’ll unlock a world of hidden treasures. So, why wait? Let your adventure begin

Continue Reading

International

Deck Building Tips and The Best Materials To Use

Published

on

Deck Building Tips and The Best Materials To Use

Homeowners are always looking for ways to boost their property value and aesthetics. One of the ways to achieve this is to build a deck. In this do-it-yourself (DIY) era, deck building has become one of the most common home improvement projects. 

However, you can waste your money or be disappointed if it’s not done correctly. Thus, ensuring you’re equipped with the right skills and know-how is necessary before starting the project. You can get a quality and low-maintenance deck that boosts the beauty of your home. This blog discusses what you need to know about deck building. Keep reading. 

Choose The Right Building Materials 

The building materials ultimately affect the outcome of your project. Gone are the days when your only option was wood. Today, there are many types of products to choose from. They include: 

  • Composite 

The popularity of composite has increased notably over the last few years. Recycled plastic and wood dust are bound to create long, dense boards. Composite decking boards are generally eco-friendly and require little to no maintenance. Additionally, they are dust and weather resistant; thus, they have a longer lifespan. 

 You can use composite material to build different sections of a deck. For instance, you can erect composite deck stairs to allow people to move from one level to another. However, you must avoid spending on low-quality products by purchasing your building materials from a reputable manufacturer. 

  • Aluminum 

Aluminum has become a popular alternative to wood. Many homeowners use aluminum because it has a lower maintenance cost. Additionally, it can last for years and is fire-resistant. This might be ideal if you live in wildfire-prone areas. You can choose from various aluminum options to meet your needs and preferences. Remember that aluminum decking materials have different strength properties, corrosion resistance, and workability.  

Other building materials, such as concrete, grass deck tiles, and hardwood, are available. The type you choose depends on several factors. You should consider your budget and expectations, the required upkeep, and the durability of materials. 

Follow The Appropriate Building Codes 

The local administration has rules and policies surrounding any home improvement project. These building codes are enforced to ensure safety and protection. Some of the guidelines include the following:

  • Start With A Proper Foundation 

Building a deck on a weak foundation may compromise the stability of the whole structure in the long run. Visit the local building authorities to learn more about how you should build your foundation. Adhering to this requirement can prevent accidents and other hazards. 

  • Obtain Necessary Permits

You may be violating a local ordinance or zoning law if you don’t have the authorization to build a deck. Ensure the paperwork is complete before starting the project to prevent unannounced visits from the local authority. To obtain a permit to create or renovate a deck, the homeowner should submit the construction plan to the concerned agency for approval. You can avoid unnecessary downtime in deck construction by securing a license to build. You’re also confident that you’re following safety protocols and sustainable practices.

However, it’d be best to understand that these building codes may change over time. Thus, ensure you’re up to date with construction rules and regulations to avoid any conflicts. 

Outsource The Building Services 

Despite the growing popularity of DIY projects, it’s advisable to outsource the services from a reputable contractor. The service provider possesses the right skills and tools to ensure you build the deck of your dreams. However, getting the right provider is challenging, especially for new homeowners. Consider utilizing the following tips to ensure you employ a reputable local company: 

  • Credentials 

Before hiring a contractor, check whether they’re certified to offer the services in your area. It would help if you also asked for their documentation. Most providers post their certifications on their sites. If a contractor is unwilling to share their documents, that might be your cue to move to the next provider on your list. 

Besides licensing, reviewing the service provider’s liability policies is crucial. Understand how it’ll cover you, your property, or your workforce in case of an accident. Otherwise, you risk getting stuck with the bill if your house gets damaged or someone gets hurt. 

  • Experience 

You’ll get high-end deck designs when you outsource the services from an experienced third party. Also, a competent contractor can keep up with evolving construction policies, ensuring your safety and workforce. 

In Summary

Over the years, homeowners have built decks to boost their property aesthetic and value. However, constructing one is daunting for many. Therefore, it’s crucial to research extensively to understand how to go about it, including outsourcing a reputable contractor.

Continue Reading

International

Report: 55 of the top 100 banks by assets under management have invested in crypto or a blockchain company; Barclays and Citigroup are the most active investors (Report Barclays Citigroupavannomayocointelegraph)

Published

on

Report Barclays Citigroupavannomayocointelegraph

Report Barclays Citigroupavannomayocointelegraph: During a time of unprecedented volatility in traditional marketplaces, a new investment trend has emerged: crypto. When the price of bitcoin has been increasing exponentially and new cryptocurrencies are cropping up by the day, it’s clear that cryptocurrency is quickly becoming an important topic to know about. This article highlights 55 of the top 100 banks by assets under management that have invested in crypto or a blockchain company; Barclays and Citigroup are the most active investors. The article also mentions that these investments can help hedge against volatility in traditional markets.

While cryptocurrencies are becoming more and more mainstream, the methods of investment are still limited. You can buy cryptocurrency on an exchange, but you cannot hold it there. At most exchanges, cryptocurrency can be held in online wallets for a short period of time before being withdrawn to a personal digital wallet. Some banks have been willing to act as custodians of crypto assets and to provide accounts denominated in cryptocurrencies; however, most banks have still not entered this market yet. Banks that have been most active in entering this market have been Barclays and Citigroup.

Figure 1: The top 100 banks by assets under management (in billions)

I did some digging to find out which banks had the highest levels of crypto exposure, and found that there were two groups who had cryptocurrency exposure. The first were banks that are regulated in the US; the second, regulated by UK and EU laws, would not be subject to US regulations. The top banks by assets under management (as of June 30, 2017) were Barclays and Citigroup.

Bank Name Total Assets Under Management % of Assets Under Management* % of total AUM in Companies with Crypto & Blockchain Investments Citigroup $859.7 billion 2.65% 2.45% Barclays $868.3 billion 3.84% 1.89% BNP Paribas $831.5 billion 5.18% 0.73% Société Générale $785 billion 4.68% 0.39% Wells Fargo $1.4 trillion 2.27% 2.27% Credit Agricole $419 billion 4.64% 0.39% Royal Bank of Canada $735 billion 5.03% 1.18% JP Morgan Chase $2 trillion 3.06% 1.12% UBS Group $1,349 billion 4.55%-5.5 % 0 0 Deutsche Bank Group $1,049 billion 5%-10 % <0 .01% Morgan Stanley $916.5 billion 9.77% <0 .01% Bank of America $1.3 trillion 6.61% 1.12% Bank of Montreal $650 billion 7.71% 0.39% Goldman Sachs $1,041 billion 4%-6% <0 .01% HSBC Holdings $1,185 billion 2%-4 % <0 .01:1 * % of Total Assets Under Management are calculated as AUM divided by Total Assets Under Management for Banking & Insurance Companies (June 30, 2017). Total Assets Under Management are obtained from World Bank. AUM in Companies with Crypto & Blockchain Investments got from our previous article ‘Where is Cryptocurrency exposure the Largest in Banking?’.

Continue Reading

Trending