Retirement Property Calculator
How to Calculate Retirement Property Metrics
Here are the primary calculations involved:
- Affordability: Affordability (%)=(Property PriceAvailable Savings+Monthly Income Allocated for Property)×100
- Rental Income: Rental Income=Monthly Rent×12
- Net Retirement Property Cost: Net Cost=Property Price+Annual Maintenance Costs−Rental Income
Example:
You are considering purchasing a retirement property priced at $250,000. You plan to rent it out for part of the year and expect the following:
- Savings: $50,000
- Monthly income allocated for property expenses: $2,000
- Expected monthly rent: $1,200 (for 10 months/year)
- Annual maintenance costs: $3,000
- Affordability: Affordability (%)=(25000050000+(2000×12))×100=136%
- Rental Income: Rental Income=1200×10=12,000USD/year
- Net Cost: Net Cost=250000+3000−12000=241,000USD After rental income, the effective cost of owning the property is reduced.