SearchCalculating potential ROI
Poornaka asks:
(updated on Friday, August 10th 2018)
I am thinking about building additional dwellings on my existing plot to rent out. But how can I figure out my return on income? Is there a professional entity that provides forecasting on what the return could look like based on some basic input assumptions? My goal is to back-calculate how much I should be spending to build based on the potential rental gross income from the area.
Our Experts Answer:
You probably need to start with ascertaining what your additional dwellings will cost. Once you have information pertaining to that you should then be able to show any plans to both a registered valuer to ascertain end market value and a couple of property managers who could then estimate likely rental returns. But do note that the numbers are likely to move around a bit as the estimates will be on the current market and the market may move slightly by the time the dwellings are actually completed and ready to take to market.
Most Read
| Unity First Home Buyer special | 4.09 |
| SBS FirstHome Combo | 4.19 |
| ICBC | 4.49 |
| Kainga Ora | 4.59 |
| Co-operative Bank - First Home Special | 4.59 |
| ANZ Special | 4.65 |
| AIA - Go Home Loans | 4.65 |
| ASB Bank | 4.65 |
| TSB Special | 4.69 |
| Co-operative Bank - Owner Occ | 4.69 |
| SBS Bank Special | 4.69 |
| China Construction Bank | 4.95 |
| Kainga Ora | 4.95 |
| ICBC | 4.99 |
| Nelson Building Society | 5.09 |
| Westpac Special | 5.19 |
| SBS Bank Special | 5.19 |
| AIA - Go Home Loans | 5.25 |
| TSB Special | 5.25 |
| ASB Bank | 5.25 |
| BNZ - Std | 5.29 |
| ANZ Special | 5.29 |
| Westpac Special | 5.49 |
| BNZ - Std | 5.49 |
| ICBC | 5.65 |
| Kainga Ora | 5.69 |
| SBS Bank Special | 5.79 |
| Co-operative Bank - Owner Occ | 5.79 |
| ASB Bank | 5.89 |
| AIA - Go Home Loans | 5.89 |
| Kiwibank Special | 5.99 |
| TSB Special | 5.99 |
| China Construction Bank | 5.99 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 3.95 |
| Co-operative Bank - Owner Occ | 4.99 |
| Co-operative Bank - Standard | 4.99 |
| ICBC | 5.39 |
| Kiwibank - Offset | 5.75 |
| Kiwibank Special | 5.75 |
| Kiwibank | 5.75 |
| Unity Standard | 5.79 |
