I am not sure what the inflation rate and capital growth rate are for the area where the property is located. How can I determine what percentage rate to enter for these two parameters?
You may find information about the inflation rate by contacting your city/state government offices. They keep statistics for the regions they govern. You may also be able to locate this information on the Internet or by referring to a librarian. As for the capital growth rate, a real estate brokerage or realtor should be able to help you obtain an accurate figure. Remember the inflation rate is not necessarily the national rate, but specific to the particular region in which the property is located. For example, a city might have a different inflation rate than the state it is in, and that state’s inflation rate might differ from the inflation rate of the nation. Capital growth rates also vary from country to country, state to state, etc. Q: I would like some clarification regarding the REAP index. Which number is good and which is bad? There doesn’t seem to be a finite range like 1 to 10. A: The REAP Index report presents ratings on three aspects of the investment property. The first
