Finance and Accounting

  1. Profitability of potential investment to realize for future purchaser of housing intended
    for rental.

  2. To calculate the profitability of an investment, it’s necessary to consider all incoming
    and outgoing cash flows.

  3. Elements to consider:

    1. Turnover
    2. Depreciation
    3. Variable expenses
    4. Fixed charges (excluding depreciation)
    5. Taxation on companies or real estate
    6. Loads of borrowings (interest and fees)
    7. The residual value of the investment in case of resale
  4. To know whether to invest, the Actual Net Value of the investment must be positive (ANV > 0).
  5. The calculations that have been done so far don’t consider all the financial elements.
  6. In this case, you must take the entire cost of acquisition. The acquisition cost corresponds to the purchase price of the investment, plus any work to be carried out, application fees and interest on loans.
  7. To facilitate the calculation of profitability of investments for future buyers, I propose to make an automated Excel file.
  8. To do this, one must first create a database, which lists the price of apartments or houses for rent in Barcelona.
  9. The base must be able to determine the price per square meter per quarter and differentiate between short-term and long-term rentals.
  10. In a second step, you must extract the necessary data from the database.
  11. Thirdly, it is necessary to establish tables to calculate profitability.
  12. All tasks must be automated (exception: fill the database). For that, it is necessary to create links in the file and to realize macros (Excel VBA).