05-Mar-09 NEW: Sell or Rent Out Calculator
This "Sell or Rent Out" calculator was created specifically for a friend of mine (we'll call her Anthea) who came to me with a problem:
"I bought a buy to let property... Should I sell it now or rent it out ?"
Here's a screen shot: 
The big killer for her is the fact that the service charge is so high, and the rent so low that the mortgage is not even covered thus creating a cash black hole. She's also locked into a fixed rate mortgage with a redemption penalty.
Even assuming a property boom in 5 years time, she's still better off selling now.
There are 2 files here...
One with EXAMPLE values that we played with
One with zero values that you can download and enter your own numbers
Training Video explaining how to use the calculators on ExcelExperts.com:
- This one is for the "Buy or Rent" calculator but the principles are the same
Sell Or Rent Out Training Video:
Enter your own values, make your own market assumptions, and use at your own risk !
| Attachment | Size |
|---|---|
| sell-or-rent-out-zero-values.xls | 63 KB |
| sell-or-rent-out-example-values.xls | 75 KB |
Mortgage Payment
Since the Rent recieved is in a weekly figure does that meen that the "extra income/cost" number would be a weekly figure as well?
extra income is yearly
extra income is yearly
Sell or rent out calculator
I just found this calculator on Google search. It is a really great tool for me as I am a Realtor with a great knowledge of real estate trends and values but I dont know how to build a proper spread sheet.
However, it appears that it is not based on US tax law. My sellers can take the first $500K in capital gains tax free. If they rent for more than 3 years they will loose this advantage and will also need to pay taxes on the amount they depreciate while they are renting. How can I adjust your spread sheet to compensate for these US tax codes?
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happy to create a customised solution for you
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Property taxes, mortgage deductions, depreciation
I do not see any column for property taxes. have you considered property taxes? Also have considered deductions on mortgage and depreciation deduction on rental income?
property taxes
For property taxes, use the annual maintenance field if it's a percentage.. or put a negative number in the "Extra cost / income" column.
the calculator assumes that only the mortgage repayments are offsettable against tax. If you think you can offset more, put the "Tax rate on rental "profit" (if any)" to 0, and calculate the new cost in the "Extra cost / income" column.
Weekly Rent ?
Great spreadsheet. quick questionm. The "initial weekly rent" is this correct? Or should it be monthly??
Thanks.
Why weekly? Rent is paid
Why weekly? Rent is paid monthly in almost all scenarios other than vacation rentals here in the United States. Is this positioned for some other market?
weekly rent
the reason why it's weekly is because I prefer to look at it like that...
(very) roughly, if rental yields are around 5%, your weekly rent allows you to quickly value your house... just multiply it by 1000
So if you're paying 100 per week, the value of the house is around 100,000.. if the price is more than that, you're normally getting a good rental deal.
weekly
it's weekly