Oct 19, 2010 - 16:24

According to Yates: Formula to buying a house

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On this mornings breakfast show on Newstalk Ivan Yates gave out his formula on how to calculate

how much you should pay for a house. According to him….“If buying a house find out what houses in the same area in similar condition are renting for per month. Multiply that number by 12. Multiply that number by 20. DON’T Pay much higher than the number you get! For example:

Houses renting in area for €2000 per month

€2000 x 12 x 20 = €480,000 = Don’t pay much more than that"

(Ivan’s numbers are based on 5% return per year on your investment)

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So Ivan Yates formula to buying a house: Mathematically sound or?