Anybody seen this before? (Risk assessment tool)

[realityjason]

Came across this website HouseMiners.com. They claim that putting rent and other readily available information together can help determine if it's best-timing to buy/sell. And they claim that they're able to help general buyers and sellers to tackle uncertainties with sophisticated tool combined with local professionals who are real persons.

Thoughts? Suggestions? Can any sophisticated user(s) out there try to make sense out of it? Particularly how rent and other information relate to home value and buying strategy?

 

[AKS]

I did a rough estimate of some houses and condos and the ROI doesn't seem so good. roughly around 5% return a year. With the condo prices so high, I think it will be less than 5% return. The rent isn't high enough to justify buying and renting. Unless rent rates go up, it's not really worth it.

 

[cdr108]

Okay, i'm obviously not using the tool correctly since it's saying that I should be paid several million to take it off their hands ...

Now I do think prices are inflated, but that's ridiculous ... LOL
Maybe it's the utilities and maintenance that's killing it ???

What is "House's Price Volatility (standard deviation per year)" ?

 

[realityjason]

First, you need to established a sound so-called Rent-Implied Value, which represents a series of rental income that you'll receive, before you want to move on to estimate your timing strategy.

Standard deviation of house price growth is a standard statistical measure that captures how volatile a housing market is. Simply put, you can plot the growth data of the past and use standard functions in Excel or other software to calculate it. Many people don't have adequate knowledge to do it, but I think the default value for each area is usable.

Hope it helps.