By Gerald Tay (guest contributor)
This post requires a basic understanding of using a financial calculator. Explaining how to use it is beyond the scope of this post as I don’t want to turn it into a bed-time lullaby if you’re one of those who has never touched a financial (not scientific) calculator. It’s impossible to learn math by reading!
Rather, I’ll try to explain in layman terms so you can grasp the basics of what Internal Rate of Return (IRR) and Time Value of Money are, respectively, as well as why they are essential for property investment.
Tip: Cash flows are worth more today than they are tomorrow.
One reason why I’ve not lost money in 13 years
The Internal Rate of Return (IRR) is arguably the most holistic measure of an investment property’s return potential. That said, many investors fail to utilize this key metric, or underestimate its ...
