Post by asadul7172 on Feb 15, 2024 6:21:23 GMT -5
It's a query you should be prepared for. Remember that if this type of client has reached the door of your office it will surely be because they have investigated how you operate in the market; Chances are, winning that negotiation is closer than you imagine. But... do you consider that whoever will invest in bricks (not to take the property for use as a habitual residence, but to offer it for rent) will be a simpler client? Being attentive in advance to the different vicissitudes that may arise throughout this type of procedure will be key for it to reach a successful conclusion, and in a short time. The main thing, in advance, is to be able to estimate at least approximately what the profitability of that rental will be, in the medium future. Why? Well, because that is the main concern among clients Clients who buy to rent. To do this, it is advisable to carry out a thorough analysis of the expenses that will be involved in carrying out this real estate action. Calculating the profitability of a property that has not yet been acquired involves a series of essential calculations. Let's see them in the following paragraphs.
Buy-to-let clients To calculate and finally know the expenses that the operation will involve, you must consider three fundamental points: Your fixed expenses: pre-set taxes (depending of course on the Community or even the neighborhood); garbage rate, home insurance, IBI, etc. Repairs and maintenance: To quickly recover the investment and at the same time achieve greater profitability, it is advisable to look for a home at Azerbaijan Email List the lowest possible price, but in balance with the costs of repairs that it will surely need. In turn, future maintenance costs must be considered; such as breakages of appliances or other expenses in building repairs that must be borne by the owner. Investment level: To calculate the level of investment necessary to undertake this real estate operation, a global calculation is made, in part considering the two previous points. Total taxes and fixed expenses, VAT (10% in the case of real estate sales), notary offices, real estate commissions, etc. What will be the rental profitability? It is the question that the client will have in his head from the moment the consultation begins.
As we said, being clear about fixed expenses, maintenance and investment levels will help you offer an ideal budget and calculate the closest result with your client. Let's see in a brief example, what is the most applied formula to easily and without fear of making mistakes, reach the result of the profitability of the property to be acquired: Rental income (measured annually): 10,000 euros. This means that the rental contract will stipulate a monthly payment of 833 euros. Fixed annual expenses: 2,000 euros. Consider here the maintenance and repair costs that the owner of the property, that is, your client, must take care of. Investment levels: 200,000 euros. This includes expenses for sales, taxes, advice, real estate, notary offices, etc. Let's do the calculation together Once we have these clear numbers (remember that in the previous paragraph we have provided a mere example), we can perform the calculation. The same eventually does not fail; and it is the one applied by the vast majority of real estate companies and the offices of independent real estate agents.
Buy-to-let clients To calculate and finally know the expenses that the operation will involve, you must consider three fundamental points: Your fixed expenses: pre-set taxes (depending of course on the Community or even the neighborhood); garbage rate, home insurance, IBI, etc. Repairs and maintenance: To quickly recover the investment and at the same time achieve greater profitability, it is advisable to look for a home at Azerbaijan Email List the lowest possible price, but in balance with the costs of repairs that it will surely need. In turn, future maintenance costs must be considered; such as breakages of appliances or other expenses in building repairs that must be borne by the owner. Investment level: To calculate the level of investment necessary to undertake this real estate operation, a global calculation is made, in part considering the two previous points. Total taxes and fixed expenses, VAT (10% in the case of real estate sales), notary offices, real estate commissions, etc. What will be the rental profitability? It is the question that the client will have in his head from the moment the consultation begins.
As we said, being clear about fixed expenses, maintenance and investment levels will help you offer an ideal budget and calculate the closest result with your client. Let's see in a brief example, what is the most applied formula to easily and without fear of making mistakes, reach the result of the profitability of the property to be acquired: Rental income (measured annually): 10,000 euros. This means that the rental contract will stipulate a monthly payment of 833 euros. Fixed annual expenses: 2,000 euros. Consider here the maintenance and repair costs that the owner of the property, that is, your client, must take care of. Investment levels: 200,000 euros. This includes expenses for sales, taxes, advice, real estate, notary offices, etc. Let's do the calculation together Once we have these clear numbers (remember that in the previous paragraph we have provided a mere example), we can perform the calculation. The same eventually does not fail; and it is the one applied by the vast majority of real estate companies and the offices of independent real estate agents.