Are the three formulas of real estate investment estimation feasible?

1, investment formula 1: Rent multiplier less than 12 Rent multiplier less than 12 Rent multiplier is a simple formula to compare the sum of total selling price and total annual rental income (rent multiplier = investment/annual rental potential income) less than 12. Investors can compare the total rent multiplier of the target property with the property they require, or compare different properties and choose the smaller one. However, this method does not consider the impact of vacant houses, rent loss, operating expenses, financing and taxes. 2. Investment formula 2: 8- 10 years to recover the investment. The payback period method can recover the investment within 8- 10 years. Considering the rent, price and the main investment in the early stage, it is more suitable than the rent multiplier, and the length of the capital recovery period can also be estimated. The formula is: investment recovery period = (mortgage loan in the first period)/(monthly rent-monthly mortgage repayment) × 12. Generally speaking, the shorter the recovery period, the better, and the reasonable period is between 8- 10 years. 3. Investment Formula 3: 15 Income is higher than the purchase price 15 Income is higher than the purchase price. If the annual income of the property × 15 = the purchase price of the property, the property is worth the money; If the annual income of real estate is ×65438+ the purchase price of real estate in 2005, there is still room for appreciation of real estate; If the annual income of the property is ×65438+ the purchase price of the property in 2005, it is not suitable for investment. Article 37 of People's Republic of China (PRC) Urban Real Estate Management Law refers to the act of real estate owners transferring their real estate to others by buying, selling, giving or other legal means. Thirty-second real estate transfer, mortgage, housing ownership and land use rights within the scope of housing occupation at the same time transfer, mortgage. Thirty-third benchmark land price, demarcation land price and the replacement price of all kinds of houses shall be determined and published regularly. Specific measures shall be formulated by the State Council. Article 34 The State practices a real estate price appraisal system. Real estate price evaluation should follow the principles of justice, fairness and openness, based on the benchmark land price, the calibrated land price and the replacement price of various houses with reference to the local market price, and be carried out in accordance with the technical standards and evaluation procedures stipulated by the state.