FREE PERSONALIZED REPORT
In just a matter of minutes Stellax allows you to receive an insightful investment report that would estimate how much return on your investment you can expect. The report assumes an investment horizon of ten years and includes a detailed cash flow and profit analysis taking into account potential rental income, various taxes, mortgage payments etc. Apart from that Stellax provides additional insights regarding the riskiness of the investment (Stellax Risk Score) by assessing the population trend, vacancy rate, days to find a tenant, population density etc. Fill in the form below and expect your personalized report to arrive at your email address in 2 to 5 minutes!
HOW TO READ THE REPORT
– Gross rental yield is the return to an investor before incurring any costs. It is calculated as annual rental income divided by price;
– Net rental yield is the return to an investor after incurring all the costs (operating, vacancy, taxes etc.) except for financing costs. It also does not account for house price appreciation/depreciation; – – Stellax Risk Score is a proprietery Stellax risk metric, which assesses investment’s riskiness. The score ranges from 1 (highest risk) to 99 (lowest risk). Read more about it here.
– Financing assumptions include percentage of the property price that is financed by mortgage (debt to value); and interest that has to be paid on the mortgage and the amount of time the mortgage is taken for.
– Macroeconomic assumptions include property price growth rate and inflation rate (the costs and revenues are inflated over time).
– Revenue section includes an estimate of the monthly revenue (you can expect to receive from renting out property) and occupancy rate (% of the year a property is expected to be rented out).
– Costs section consists of an initial investment estimate and recurring costs. The initial investment is a one-time expense that happens at the property purchase date. The recurring costs are expected to be incurred through out the projects on the annual basis.
Note that renovation costs are the costs related to additional funds needed to keep the property in a decent state. Even though renovations do not usually happen every year, the costs are spread out across the investment horizon. Such normalization is done to provide a more representative cash flow estimate to the investor. Note that the estimate varies with the construction year of the property, assuming that older buildings have a higher chance of additional renovations. Moreover, a higher renovation spend is assumed for the property owners that do not deposit any money in the VVE account. Management costs are the costs related to finding new tenants, minor renovations, or some other everyday problems that are incurred by the landlord during the course of the project.
– Initial ivestment is the money that has to be paid out of the investor pocket to start the project. It is a sum of transaction costs and the percentage of the property price that is not financed by debt;
– Average annual cash flow is an average amount of money added to the bank account within a year in the next 10 years;
– Total return is the return to an investor that accounts for both cash and non-cash effects. It does not only account for all the costs (incl. financing costs), but also potential property price appreciation.
WHAT ARE YOU EYEING UP?
Disclaimer: The information provided by Stellax is not intended to replace any legal, real estate, tax, or other professional service. Stellax does not guarantee any investment return to the service user. The presented figures are an estimation of the algorithm based on the limited information. Please read the limitations section carefully. Do not make an investment without understanding the risks.