# 05-Mar-09 NEW: Sell or Rent Out Calculator

This "Sell or Rent Out" calculator was created specifically for a friend of mine (we'll call her Anthea) who came to me with a problem:

"I bought a buy to let property... Should I sell it now or rent it out ?"

Here's a screen shot:

The big killer for her is the fact that the service charge is so high, and the rent so low that the mortgage is not even covered thus creating a cash black hole. She's also locked into a fixed rate mortgage with a redemption penalty.

Even assuming a property boom in 5 years time, she's still better off selling now.

There are 2 files here...

Training Video explaining how to use the calculators on ExcelExperts.com:

• This one is for the "Buy or Rent" calculator but the principles are the same

Sell Or Rent Out Training Video:

AttachmentSize
sell-or-rent-out-zero-values.xls63 KB
sell-or-rent-out-example-values.xls75 KB

### What is Annual Service

What is Annual Service Charge?

### for managed blocks of flats,

for managed blocks of flats, the management company charges a service charge for maintaining the building and amenities...

Really it is a great tool, and im injoying using it.
but i would like to ask if i can add the following missing calculations:
1- Selling and reinvestment in other property wither in cash or mortgage
2- personal deductions or monthly expenses deductions from rental and post tax investemnt.
3- increass on inflations rates on those expenses.

### Mortgage Payments

In the US, we use an amortization table to determine mortgage payments. So, your calculation for the Mortgage Payment column only includes the interest portion of the payment, not the principal.

### I'm assuming interest only

I'm assuming interest only mortgages.

"PMT(mortgage_interest_rate/12,360,mortgage_amount)*12" for a 30-year fixed in the US

### Mortgage Payment

Since the Rent recieved is in a weekly figure does that meen that the "extra income/cost" number would be a weekly figure as well?

### extra income is yearly

extra income is yearly

### Sell or rent out calculator

I just found this calculator on Google search. It is a really great tool for me as I am a Realtor with a great knowledge of real estate trends and values but I dont know how to build a proper spread sheet.

However, it appears that it is not based on US tax law. My sellers can take the first \$500K in capital gains tax free. If they rent for more than 3 years they will loose this advantage and will also need to pay taxes on the amount they depreciate while they are renting. How can I adjust your spread sheet to compensate for these US tax codes?

### Request a quote

happy to create a customised solution for you