You have decided that you will sell off your house, which is currently valued at $300,000, at a point when it appreciates in value to $540,000. If houses are appreciating at an average annual rate of 5% in your neighborhood, for approximately how long will you be staying in the house?
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You have decided that you will sell off your house, which is currently valued at $300,000, at a point when it appreciates in value to $540,000. If houses are appreciating at an average annual rate of 5% in your neighborhood, for approximately how long will you be staying in the house?
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- A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rate of 6%. How much should an investor be willing to pay for this property? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.You are considering buying a condo as an investment property. The condo will generate $20,000 a year for 10 years in rent, after which you expect to sell the property for $275,000. What is the maximum you should pay for the property if your cost of money is 7%?You are considering investing in a rental property. Market rent for similar properties is 1, 500 a month (18,000 a year). Maintenance costs, property tax and insurance add up to 4, 000 a year. You expect rent and cost to increase at 5% a year. You plan to hold the property for 10 years and expect to sell it at the end of 10 years for $250,000. How much should you pay for it now if you're asking for a return of 15% ?Question 13 options: $152, 134.01 $132, 058.94 $169, 321.37 $145, 426.88
- Please Show me the calculations!! A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rateof 6%. How much should an investor be willing to pay for this property?Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 1% 1.010 1.020 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 1.020 1.040 1.040 1.082 1.125 1.170 1.217 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.030 1.061 1.060 1.124 1.070 1.145 1.225 1.311 1.403 1.110 1.232 1.368 1 1.080 1.090 1.100 1.166 1.260 1.360 1.469 1.188 1.210 3 1.030 1.061 1.093 1.191 1.295 1.331 1.041 1.126 1.159 1.194 4 1.082 1.262 1.412 1.464 1.518 5 1.104 1.126 1.338 1.611 1.772 1.685 1.870 1.051 1.539 1.062 1.072 6. 1.265 1.419 1.501 1.587 1.677 1.316 1.949 2.144 1.149 1.230 1.504 1.606 1.714 1.828 1.993 2.076 2.305 1.594 1.689 8 1.083 1.172 1.267 1.369 1.477 1.718 1.851 1.305 1.344 1.384 2.358 1.423 1.480 1.094 1.195 1.551 1.838 1.999 2.172 2.558 2.839 3.152 10 1.105 1.219 1.629 1.791 1.967 2.159 2.367 2.594 1.710 2.105 2.252 2.410 11 1.116 1.243 1.539 1.898 2.332 2.580 2.853 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 2.813 3.138 3.498 1.138 1.149 2.720 3.452 3.797 4.177 4.595 5.054 5.560…You are trying to evaluate the feasibility of purchasing a land. You plan to rent the plot of land to receive after-tax receipts of $2,500 per month. You are hoping to sell the land in the next ten years to receive after-tax proceeds of US$2.0 million to purchase a building containing at least four apartments. Assume the funds for purchasing the apartment will be drawn from your savings account which is currently earning 2% after taxes and that inflation rate is currently 5%. a) Identify the cash flows, their timing and the required rate of return applicable to calculating the maximum value you should pay for the land. b) Showing all calculations state if you should purchase the land for $1.6 million, justify your decision. What is the maximum price you should pay to acquire the single dwelling unit?
- You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year mortgage at 3.25% annual interest rate for the cost of the house after they receive a 20% down payment. At the end of the 15-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $415,000.00 house really cost the couple?2. You plan to purchase an office space in Chamblee's Chinatown for $50,000 at the end of year 2021. You estimate that by renting out that office space, you will receive a stream of rental income for the coming eight years at the end of each year as shown in below. After eight years, you estimate that you can still sell the office space for $45,000 at the end of the eighth year. Is this project a good investment if you project that the normal rate of return in this line of business is 12%? How about if the general rate of return is 15% ? 8%? Year 1 $6,000 Year 5 $7,500 Year 2 $6,500 Year 6 $8,500 Year 3 $7,000 Year 7 $8,500 Year 4 $7,500 Year 8 $8,500 3. Based on the information provided in Step 2 above, compute the Internal Rate of Return for the investment. 4. While you were waiting for your first job interview results to come, you spent several dollars to buy a Georgia Educational Lotto and were lucky enough to win a $1 million prize. The prize is to be awarded in 20 annual payments…An apartment will generate $8,000 a year for 5 years, after which you expect to sell the property for $100,000. What is the maximum you should pay for the property if your cost of money is 10% ?
- You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 3.25% annual interest rate for the cost of the house after they receive a 20% down payment. How much interest will they have paid? How many of her monthly payment go toward the interest? What percent increase over the cost of the home does this interest represent? Redo and re-answer all questions, but this time for 15 years?You estimate that you can save $9,000 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 6 percent? I need help to use appropriate factor(s) from the tables provided when it comes to rounding the time value factor to 3 decimal places and final answer to 2 decimal places. Future value= ???Refer the attached Case Study to solve, Enrico has planned to have $40,000 at the end of 10 years to place a down payment on a condo. Property taxes and insurance can be asmuch as 30% of the monthly principal and interest payment (i.e., for a principal and interest payment of $1,000, taxes and insurance would be an additional $300).What is the maximum purchase pricehe can afford if he’d like to keep his housing costs at $950 per month?