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Calculate property capital growth with our yield compression gizmo

Property growth calculator
Feb 17, 2017

Calculate your income at resale

One of the questions we’re most often asked is how much your property will be worth when you sell it on – which is why we’ve put together our yield compression gizmo to help calculate capital growth of your property investment.

Because Purpose Built Student Accommodation (PBSA) is classified as commercial property, its value is based on its income-generating capacity.

As an operational property with a proven income record, your property is all the more attractive to prospective buyers – last year, 80% of all PBSA sales involved operational units (Savills).

Our fully transferable high NET yields and sector-leading long fixed income periods allow you to make capital growth at resale through yield compression.

 

How our calculator works

In order to calculate property capital growth, follow these steps:

First, select your chosen property from the options at the top of the page.

Then, you’ll see that on the resale value calculator Bob is operating the yield compressor; you need to help him move it in and out.

As he pushes, you’ll see that he

1. Decreases the yield percentage you’re selling on
2. Increases your asking price
3. Increases your capital growth

The reverse happens when he pulls the plunger back up.

 

Speed of resale

An important factor to consider when setting a resale price and yield percentage is how quickly you need to sell.

For instance, offering a 10% yield should see the property sold in about a week.

For 8-9%, allow 4-6 weeks; and for 7-8%, 6-8 weeks.

Below 7% is a tougher sell and will take a while longer.

 

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