Re: patio villas decreasing??
Assuming a 5% rate of return in perpetuity is one of the reasons we have collapsed. But for planning purposes only i guess it's fine.
I actually just put things in today's dollars - For example I'll say that my home is worth 500k and i won't change that figure and then look up a TV house and let's say i get it for 400K. By doing that, as long as the houses move together in the same fashion, you don't need to do future return analysis. It works for me and i haven't changed the value of either house for 3 years in my spreadsheet even though i know that they have both gone down.
I'll get there - someday!
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