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Rex R. Wei

08 Oct 2019

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Can anyone help me check an internal rate of return calculation?

I'm currently evaluating the feasibility of an investment in property. I found a spreadsheet for calculating property returns, and I thought that I will share it here for some feedback.

Link to a PDF of the calculation made using the spreadsheet: https://gofile.io/?c=X63R9i

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Hariz Arthur Maloy

05 Oct 2019

Independent Financial Advisor at Promiseland Independent

You did the calculations already. Seems pretty accurate, I didn't really scrutinize it.

But I'm sure you can find a better loan than 2.88% p.a. That's way too high. Try again with a conservative 2.1% p.a mortgage rate.

But even then, such a high quantum for a non guaranteed 15% markup over 3 years? What's the point? And as you can see you're right, after levies and fees to the agent to help sell the property, it makes barely any sense.

There are 3-year endowment plans giving 2.3+% p.a guaranteed for 3 years.

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I have been servicing a limited pay whole life policy for 15 years. How do I compute the internal rate of return of the policy to help me with my next policy selection?

How do I calculate with financial calculator the effective annual return rate for an endowment of 10 years tenure with yearly payment of $500 (for 10years) and illustrated yield of $70000 at maturity?

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