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 |
How to adjust to reflect new BTL / tax landscape
Thanks for the very helpful tool. What would you suggest as adjustments to reflect change in UK BTL tax setup since 2016? In particular, move towards taxing full rental after deductions rather than residual profit? Can you suggest a way to reflect this in extra cost, or how to change formula for Tax Rental on rental profit box?
Thank you
BTL
prob best done via the "Tax on rental profit" %.. try a few values to see what makes sense.
HOA Fees
Townhome is caught up in a flooded market. Home is NOT mortgaged. There are a number of homes adjacent to ours for sale, so we are trying to decide whether to hold on to sell or rent. There are steep HOA fees at $720 a quarter. Where do I enter those into the spreadsheet?
Sounds like you can put it in
Sounds like you can put it in service charge
What is Annual Service
What is Annual Service Charge?
for managed blocks of flats,
for managed blocks of flats, the management company charges a service charge for maintaining the building and amenities...
Adding some Calculations
Really it is a great tool, and im injoying using it.
but i would like to ask if i can add the following missing calculations:
1- Selling and reinvestment in other property wither in cash or mortgage
2- personal deductions or monthly expenses deductions from rental and post tax investemnt.
3- increass on inflations rates on those expenses.
Mortgage Payments
In the US, we use an amortization table to determine mortgage payments. So, your calculation for the Mortgage Payment column only includes the interest portion of the payment, not the principal.
I'm assuming interest only
I'm assuming interest only mortgages.
Instead of using
Instead of using "-mortgage_amount*mortgage_interest_rate" use
"PMT(mortgage_interest_rate/12,360,mortgage_amount)*12" for a 30-year fixed in the US