Sunday, March 11, 2007
After tax investment yields
When considering an investment property, please consider the after-tax view. Cap rates are hardly useful in analysing a true investment over time. With cost recovery (depreciation) making such a huge impact on the IRR (internal rate of return), this makes the investment far more attractive. What is also very important is the cost of your money. Waiting 60 or 90 days to do a conduit loan to acheive excellent rates is worth all the effort. The stock markets are faltering, time to get into 10 year loan money before cap rates adjust.