real estate property investment 101
TRANSCRIPT
THE AMERICAN DREAMTOGETHER, WE MAKE IT A REALITY!
REAL PROPERTY INVESTING 101
Dwight Copeland/Realtor®Point Home Realty - Temecula Valley
$300,000. PURCHASE PRICEThis represents the average price single family home which should carry a breakeven rental value
20% DOWN PAYMENT this would be the initial investment amount that would be required. You can utilize a 401K, retirement fund or savings account
4.0% INTEREST RATE this rate is the rate we will use to calculate profitability of your investment. Contact your lender for current rates based on your financial situation
The Scenario Calculations
The Equity GrowthWith every payment made by the tenant, your principal balance is reduced and your equity increases.
YearEquity 5
YearEquity 10
YearEquity 15
$25,000.00
$60,000.00
$96,000.00Equity calculations are rounded to the nearest $5,000.
EQUITYPrincipal Reduction & Appreciation
NationalAssociationof Realtors
Data
Projected AppreciationMean percentage appreciation by home price expectation survey 2014 Q3.
The Appreciation GrowthThe National Association of Realtors annual appreciation rate nationally. Year
Equity 5Year
Equity 10
YearEquity 15
$40,000.00
$85,000.00
$135,000.00
2.5%Conservative
rate
Appreciation calculations are rounded to the nearest $5,000.
Equity
Growth 2 $96,000.00
Initial
Investment1 $60,000.00
ASSETCalculations
Equity + AppreciationOverall asset growth calculated based on a “Hold15” strategy.
HoldTotal Asset Value
15
Appreciation
Growth
3 $135,000.00
$291,000.00
Savings ComparisonHere we analyze your initial investment gain if invested in a high yield investment portfolio.Year
Growth5
YearGrowth
10
YearGrowth
15
$8,000.00
$17,000.00
$27,000.00
$60,000At 12% APR
Total 15 Year ComparisonWith every payment made by the tenant, your principal balance is reduced and your equity increases.Real Estate
Gain
$231,000.00Savings Gain
$27,000.00
$60,000Initial Investment
HistoryRates byDecade
Lets Talk Rate HistoryThe history of our rates going back 5 decades shows we are at a historical low.
ProjectedRates by
Freddie Mac
Projected Rate IncreaseHere Freddie Mac is predicting that by the end of 2015 we will be averaging over 5%.
Buyer’sPurchase
Power
Effect of Higher RatesAs you can see here, with every upward tick of the interest rates your ability to qualify will lower.
PaymentDifferences
Effect on Asset CostTaking the Freddie Mac rate projections, you can see that a $250K mortgage will cost $60,000 more over 30 years.
12mo Projected Rate
Total Growth
5.5 $218,000.00
Current Rate
Total Growth4.0 $231,000.00
GrowthWith rate variances
Effect on Equity Growth Today its all about buying the interest rate. Every Projection is that rates will rise and as they rise, your growth decreases.
20yr Average Rate
Total Growth
7.0 $206,000.00
calculations are rounded to the nearest $1,000.
Legal and Licensing InformationDwight Copeland is licensed by the California Bureau of Real Estate (License Cal BRE 01943729) and is a full-time Realtor® doing business with Point Home Realty (licensed by the California Bureau of Real Estate -License Ca. BRE #01957516), principal office located at 27247 Madison Ave #200, Temecula, California 92590. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.
714-598-7407(Mobile Direct)
www.soldbydwightcopeland.com
www.temeculavalleyhomes.info
*used with permission
PERFORMANCE FOR MY COUNTRY PERFORMANCE FOR MY CLIENT