If a brand new building 5 blocks from the White House leases for $1 million per year, what is its value?
Answers: if you don't worry about property taxes & upkeep maintenance, then to find its value, figure out how much you'd have to invest in a bond or other nice little investment to capture the 1mil income each year.
lets say you could get a nice AA bond at 6%... and that the building will go up in value 3% each year for appreciation, that means that the 1mil would be 3% of what the building is worth ( all approximate!)
so, 1000000/.03 = 35million
of course, property taxes & maintenance and whatever are real, so maybe out of the million$ lease you get to keep 600,000, so then you divide 600k / .03 and get a value of 20mil...
or maybe property appreciation is 10% year, so the million is just the nice litte icing to the cake, then it might be only 1% of the value: 600k / .01 = 60mil!
so many variables.
this would generally by over 10 times the yearly rent so say 11-12 million
this is a very rough guide however and many other factors may affect this
Real estate valuation is tricky. One method is looking at replacement cost.
Another is looking at current market prices of surrounding similar buildings.
Since you have provided the rent the only method we can use to analyze the value is buy looking into the income the building generates. Having said that let us assume the building is occupied and we can keep the cash flow from10 months out of the year and we wish to earn 10%. The building would then be worth 100 times its monthly rent. Depreciation will shield much of the cash flow from rent.
Since real estate is such a poor investment UNLESS one puts down to speculate on the trend of inflation as small a down payment as possible I would figure 5% return on equity value per year, as a rule of thumb so this property is worth roughly $20 million. Like they say value is in the eye of the beholder. What are you actually willing to pay once the seller accepts the buyers funds to complete the deal. Being in a very tough real estate market now I would say this price is not far off the mark.
Any body cool enough to give info on analysis in stock picking in an emerging market.(nigerian capital market)
Answers: I don't know anything about Nigeria's capital market.
Be careful, this is the fraud capital of the world.
Good luck.
In the case of the Nigerian capital market, it's all about how many more identities you people can steal or how many more poor old ladies you can convince to send you merchandise you have bought with stolen credit card numbers.
How much is the total amount after 3 years of investment if US 5,000?
was invested at the interest rate of 2% per annum, compounded every partially a year.Answers: INFLATION RATE IS 3.4%
YOU'VE EARNED NOTHING1
Better put your money in Belarusian hill. You will get a 13% rate of interest beside NO RISK AT ALL because all deposits are state insured.
Put $10,000 and acquire back $18,424 within 5 years (compound interest). No fees.
For more details please email me at bestinvest(a)land.ru (with your runeye.com nickname).
Good luck!
$5,307.60
. oh wait...
thats $4,832.83 AFTER taxes! heh heh
If my math skills are correct this morning it should be
$5630.81 compound si-annually.
It seem I'll try to teach you how to fish today, instead of only just giving the fish over.lol Go to any prominent investment company's website, click on the calculators icon on their homepage. Insert your information and hit "calculate". Using these free tools you should be capable of figure any sort of returns. Actually I judge Yahoo finance might know how to help you too.
$5,307.60
Assuming No Fees. After 1 year 5000X1.02=5100
after 2 years 5100X1.02= 5202
after 3 years 5202=5306.04 and so on respectively year.
TWO PERCENT... someone was in actuality DUMB enough to invest their money at simply TWO PERCENT?... he,he,he... that's PATHETIC.