Question
You have the opportunity to purchase a small apartment in Grenoble, that you think you will be able to rent perpetually at a rent of
You have the opportunity to purchase a small apartment in Grenoble, that you think you will be able to rent perpetually at a rent of 6 000 (per year). You want to make a 5% return, and the proposed purchase price is 130 000. Is the price acceptable?
Suppose now that you will be able to increase the rent by 2% every year, starting year 2. Will you accept the price?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
