Since property investment deals are often confusing and lack information and transparency, PropertyMenu has created a deal calculator to help provide investors with full clarity on property investment deals, so that they can make more informed decisions.
Increased transparency on property deals enables investors to consistently assess property investment opportunities. This provides investors with the confidence in the numbers to complete a good, profitable investment and can even help them achieve higher returns.
Make informed decisions on property investment deals
Behind property investment deals, each individual sourcer, investor and training company has a different way of calculating rental yields, ROIs and ROCEs. And it’s typically hard to find out how these are being calculated.
It’s important for investors to understand what is behind the numbers in order to make informed decisions on property investment opportunities. Through PropertyMenu, investors will be able to analyse and compare different property deals – an important part of building a sustainable property investment portfolio.
At PropertyMenu, we use a transparent and consistent methodology for predicting ROI. Our deal calculator makes it easy to compare and benchmark property investment deals. The deal calculator can assess the value of each deal and estimate the operating costs involved, allowing investors to invest effectively.
The benefits of PropertyMenu’s deal calculator
When assessing a property investment deal, it’s imperative to do your due diligence and research. The deal calculator makes it easier for investors to receive helpful estimations about property investment deals and provides a consistent way to evaluate different investment opportunities.
The calculator estimates the gross annual rental income and the relevant operating costs for rental investments, such as:
- building and content insurance
- utility costs (based on the number of tenants)
- high speed broadband costs
- TV license fee
- void periods
- maintenance costs
- cleaning costs
- management fee
As the operating costs for a property can make or break a deal, they should be considered and checked. If the property investment deal you’re looking at is missing any of the relevant information, you should go back to the property sourcer and ask for more information and clarification.
PropertyMenu also provides an estimated breakdown of the finance and purchase costs, such as stamp duty, legal costs and sourcing fee. To help you further assess the financial impact of a property investment opportunity, you will be provided with estimated investment projections and figures behind the property deal, such as net and gross yields, ROCE, ROI and projected payback time.
The deal calculator doesn’t provide 100% accuracy but gives the best possible estimation. The structure helps investors look at costs and projections that aren’t typically made clear through property investment deals, so you can make more informed decisions on investment opportunities. The calculator helps reduce risks and gives the most realistic overall picture of a deal.
PropertyMenu’s deal calculations offer a great way to benchmark property investment opportunities and to assess different property deals in detail. This information can help you make informed decisions on if a property investment is right for you and saves you time while assessing deals.
Have full clarity on property investment deals
It’s easy to get wrapped up in rental yields, ROIs and ROCEs you’re promised when looking at a property investment deal, but it’s important to look behind the numbers to see what the deal really means.
Through our deal calculator, we’re removing uncertainty from property deals and taking the fear factor out of property investment. As an investor, you should have full clarity of each potential opportunity because you know the potential it holds for your success better than anyone else.
To learn more about what we’re doing to improve transparency, credibility and professionalism in the property investment industry, visit PropertyMenu.com. And check out our deal calculator if there’s a property investment opportunity you’d like to assess.