One of the essential tools that any property investor needs is a good calculator to help them work out whether you are offering the right amount for a property purchase.
At Partbnb we have been working on a set of tools to help us evaluate prospective purchases, and make the right offer price.
The calculator takes the following inputs
- Potential purchase price
- Stamp Duty / chattels (to calculate correct stamp duty prices)
Checkout our article on Stamp Duties in the Caribbean here
- Legal Fees
- Renovation Costs
- Other Costs
- Expense breakdowns
You must then make an assessment of what the range of nightly rental rates & occupancy will be. This is a hugely important set of figures to get right as it will greatly impact your revenue to have a lower occupancy or nightly rate than that you predict. We recommend analysing the market for your rental property, using tools such as Airdna.
You receive the following outputs from the calculator, and this should really assist you with figuring out if the offer price is reasonable, or whether you may wish to move on to another property. In our example we have set a minimum benchmark of a 10% return. Depending on the nightly rate we expect, we can see the impact of the different of $19k on the offer price.
You will see us using this calculator in all of our property comparisons, and we will detail this in future videos.
If you want to have a play with our calculator, please drop us a note on our Social Media channels, and we will be happy to share!