Hi Christine,
Annualised Capital Gains means the capital gains you made in your property divide by the number of years you held it for.
An example of a simple calculation would be:
Purchase @ $1,000,000
Held for 10 years.
Sold @ $2,000,000
Total Profits $1,000,000
Profits per Year (Annualised Capital Gains) = $1,000,000 divide 10 = $100,000.
Of course, you might want to take into consideration other factors into the calculation, which may include some of these:
Stamp Duty paid during Purchase
Legal Fees paid during Purchase/Sale
Agent Fees paid during Purchase/Sale
Maintenance fees paid throughout
Property Tax paid throughout
Rental gains throughout
It depends on how you want to see it, but ultimately, I do not believe this should be the main basis for your decision to buy a property. Afterall, these are all historical data, and is in no way a representation for future gains.
In my opinion, if you're looking into purchasing a property, you should study the potential of capital gains in the future instead. I think this is much more important than studying historic data.
Should you need any further assistance in matters relating to property, please contact me at my mobile
9748 6305
. I will be happy to assess and share with you the possibilities for you and your partner in the current market.
Thank you.
Best regards,
Robbie Chen
9748 6305
PropNex Realty
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