Cash flow

First of all, in order to make decisions it is necessary to know what the status quo looks like. Of course, this also applies to investments in existing buildings. Assumptions on the future rental income, fluctuation and vacancy can only be made based on information on the structural condition and facilities of the buildings. Another important condition of the investment calculation is the decision in which year the various measures should be implemented. As the cash flow has to be set as realistic as possible for this purpose.

Cash flow and investment calculation

This cash flow represents all deposits and withdrawals generated by an investment project. Accordingly, it consists of the expected rental income minus ongoing management costs (e.g. operating costs, administrative costs, maintenance costs, rental loss risk) and the planned investment costs. These are forecasted over a certain period of observation. At the end there is a clear presentation of the cash flow. With this the profitability of investments can be determined by so-called dynamic investment calculation methods.

The investment module enables the IT-supported implementation of these procedures. For this purpose, customer-specific calculation logics can be established in the software. And the return on investment is determined using either the DCF method or a Visualization of Financial Implications.