Search results

I have decided to revamp my worksheet to actually amortize for 12 years, and got new numbers that should be more accurate. Based on that, we need to shave another $55K off of the 2-yr horizon, and $60K off of the 5-yr on Owen's place. That puts us at breakeven price of $975K or 1.02M...

<p>IR,</p> <p>The 7.7% annual is based on OFHEO HPI Index. I just do a growth of a dollar and then annualize, and that's what it comes out to. But as I said before, that's beside the point, since the calculation does not use house appreciation rate. It is based purely on what the rental...

<p>Owen,</p> <p>I plugged those numbers into my calcs (including 1.8% tax rate + mello roos) and I show a price of $1.03M for a 2-year time horizon and $1.08M for a 5-year horizon. So that house is about $160K to $210K overpriced in my opinion. To put it another way, you will be down about...

<p>IrvineRenter,</p> <p>I agree with you, and as I said, the number are based on assumptions, but my calculations aren't very complex. It's just based on those assumptions and simply discounting back to present value. The 7.7% is pre-run up, and covers 1981-2001. With the run up, it's 9%+...

I have done quite a bit of calculating on that, and there’s not a “simple” calculation or “rule of thumb” that can be used. There are a number of assumptions you must make, and those assumptions can sway things drastically. First of all, you must factor in assumptions for the different rates...