How to Use a Mathematical Model to Find the Most Profitable Unit in the Entire Condo Development
Did you know that within a condominium, different units can have different profitability – some more than others? With such a difference, how can you tell which particular units can allow you to earn the most profits then?
Not to worry, I have tried and tested this proven mathematical model bell curve to find which units are the most lucrative and beneficial. In fact, this bell curve has even helped my clients achieve 20 to 30 to 40% more profits than neighbouring units! Check out our track record. Read on on how we use the bell curve to help our clients choose the most profitable units to buy in an entire condo development.
How to Calculate the Bell Curve?
To calculate the bell curve, first, you need to collect all the data of the entire condominium. This means you need to collect data on every unit’s pricing and size. Just like the image above, you can input the pricing into the C column and the size into the D column.
Doing so in an excel sheet can help you automatically generate the square foot pricing (PSF) in column E. In another excel sheet, input the PSF data into the B column (as seen later) to create the normal distribution data and table.
This is what you should see in the second sheet on excel – the finalised bell curve which can help you better understand the units in a condominium.
Understanding the bell curve
So, let’s interpret this graph. Through my experience and numerous research, I’ve found that the most profitable units in a condominium are actually the ones between the 25th and the 55th percentile of this bell curve! That’s right – when you buy a unit property that’s between this range, it will actually give you the most profitable transaction.
With that said, here are my recommendations using this bell curve in the above video example. I would recommend you purchase a unit that is between 1098 psf. (25th percentile) to 1129 psf. (55th percentile).
This is because this range is extremely safe and can guarantee your profits. However, if you are buying a property for your own state, I recommend buying close to $1129 psf. or slightly lesser to maximise your profits.
But, do not go over $1129 psf. On the other hand, if you are buying a property for an investment where you want to purchase a cheaper unit, you should be looking at buying something that is $1098 psf. But not any less than that.
All this will give you the highest possible profit.
Bookmark this page so that you can always find the most lucrative units with this tried and tested mathematical model bell curve! Or, check out our Property P.L.U.S System on how we use other models to help our clients find the most profitable units to invest in.