How we can arrive a price of a Residential Property?
Method1
One old and powerful methodology to arrive a price of a particular property is calculating its "Rental Yield Per Year". For example a property which fetches rent amount as 3000 rs per month (A). The property owner is asking around 1500000 rs (B), Then the Rental Yield is (A*12/B)*100 -> 2.4%. If the rental yield is 5% or morethan 5% then the property is worth to buy or best to wait for another property
Method2
If the current price is 15% more than 2004 or 2005 then you can surely go ahead with that
Method1
One old and powerful methodology to arrive a price of a particular property is calculating its "Rental Yield Per Year". For example a property which fetches rent amount as 3000 rs per month (A). The property owner is asking around 1500000 rs (B), Then the Rental Yield is (A*12/B)*100 -> 2.4%. If the rental yield is 5% or morethan 5% then the property is worth to buy or best to wait for another property
Method2
If the current price is 15% more than 2004 or 2005 then you can surely go ahead with that
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