Question
You are considering purchasing a flat which can be rented out immediately at $8,000 per year. The duration of each rental contract is ONE year.
You are considering purchasing a flat which can be rented out immediately at $8,000 per year. The duration of each rental contract is ONE year. The rent is expected to be raised by 5% every year.
Assuming that you can rent the flat out continuously and the market interest rate is stable at 2%. How much should the price of the flat be?
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
