Assessing the Potential Relative Income to Initial Investment
A booming market may lead to higher property appreciation while a recession may cause values to stagnate or decline and the condition of the property and any renovations or upgrades made to it can affect its future value. To appreciate more over time as the economic factors such as supply and demand, interest rates, inflation rates and overall market trends can impact property values. The future value when purchasing an investment property depends on various factors including the location of the property can greatly influence its future value as properties in desirable areas with good amenities, infrastructure and potential for growth trend. Calculate the net operating income by subtracting the total expenses from the total rental income will give an idea of the property's cash flow potential before accounting for financing costs. To perform a detailed financial analysis and consider potential risks and variables when estimating the steady income from property to buy as informed