In the excel spreadsheet what does the Estimated Pre-Tax Profit Per Deal mean? Is it the capital growth or annual income per property? Can someone explain? Many thanks
Mate a couple of pieces of advice - quote the page number of the module and be specific with what table (as you call it "excel spreadsheet") you are asking about.
I would guess that is why no one has replied - they have probably considered your question but not sure exactly what you are talking about.
I looked it up, and for anyone else, I believe you are talking about Page 8-10 (Mod 2, Wheel of wealth) first table at the top of the page. Also I think you are talking about "after tax profit" not pre-tax profit as you mention in your question. If I am incorrect please let me know as I am trying to help, just guessing exactly what you are after.
If I assume what I have mentioned above, then to answer you question (I'll try and keep it simple) - it is a "quick turn deal" which infers that you have bought an investment - done some kind of value addition to it (e.g. renovation/subdivision/development) and then sold it to make your "estimated after-tax profit per deal".
It isn't necessarily about capital growth - capital growth is typically considered in a generic buy-hold sense of investing, and this is about quick turn deals - see page 8-5, "4.2.2 The quick turn approach - property" which discusses renovations, subdivisions and developments prior to you getting to the table.
So its neither the capital growth or the annual income you mentioned - its the PROFIT you want to get after you sell a property (after you have done some sort of value addition typically).
Hi Andrei,
Mate a couple of pieces of advice - quote the page number of the module and be specific with what table (as you call it "excel spreadsheet") you are asking about.
I would guess that is why no one has replied - they have probably considered your question but not sure exactly what you are talking about.
I looked it up, and for anyone else, I believe you are talking about Page 8-10 (Mod 2, Wheel of wealth) first table at the top of the page. Also I think you are talking about "after tax profit" not pre-tax profit as you mention in your question. If I am incorrect please let me know as I am trying to help, just guessing exactly what you are after.
If I assume what I have mentioned above, then to answer you question (I'll try and keep it simple) - it is a "quick turn deal" which infers that you have bought an investment - done some kind of value addition to it (e.g. renovation/subdivision/development) and then sold it to make your "estimated after-tax profit per deal".
It isn't necessarily about capital growth - capital growth is typically considered in a generic buy-hold sense of investing, and this is about quick turn deals - see page 8-5, "4.2.2 The quick turn approach - property" which discusses renovations, subdivisions and developments prior to you getting to the table.
So its neither the capital growth or the annual income you mentioned - its the PROFIT you want to get after you sell a property (after you have done some sort of value addition typically).
Hope this helps and clears it up.
Ben