Case Study Flashcards

1
Q

You mention the property is not of a tradition build, what is it?

A

Main walls appear to be of a non-traditional single leaf, timber frame design, externally rendered – meaning it was not mortgageable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How was the proposed rental figure of £700pcm determined?

A

Comparable evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How did you calculate the payback period?

A

To calculate the payback period, follow these steps:

  1. Identify Initial Investment: Determine the total initial cost of the investment.
  2. Estimate Annual Cash Flows: Identify the expected annual cash inflows generated by the investment.
  3. Calculate Payback Period: Divide the initial investment by the annual cash inflow.

Formula:
PaybackPeriod = InitialInvestment / AnnualCashInflows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly