Most of my classmates and friends have started purchasing houses. This coupled with the fact that I am in coveted DINK (double income no kids) group now have prompted me to do some preliminary research on buying a house. In my quest few things became obvious,
- Any house worth its tiles costs more than a million rupees.
- For a first house 2bhk is ok, 3bhk is good.
- An apartment with 2bhk in Chennai (where we would be based for a while) costs atleast 15L (that is on the lower side, it might be upwards of 20L)
- Making a quick decision on whether or not to have your own roof is not so easy.
So I have come up with a way to decide it based on pure numbers (obviously using excel). Here it is.
At the outset the choices are whether (1) to invest in house or (2) to invest the money somewhere while paying the rents.
The cash flows associated with (1) are: EMIs, One time down payment, tax benefits on interest and principal. And at the end of the period house value if I decide to sell. I have assumed that I would sell it off.
The cash flows for (2) are: rent, tax benefits on HRA, any appreciation of money (EMIs) through investments and tax paid on the same
The variables that control the net present value (npv) of these investments are,
- monthly rent
- basic & hra (to calculate the tax benefits on hra)
- growth rates in basic sal and rent YoY
- cost of the house
- loan %age & tenure
- interest rate (assumed to fixed through out)
- house value appreciation %age YoY
- maximum allowed tax free interest & principal payments
- tax rate
- returns on your investments if you invest it elsewhere
- returns on 5 yr. bank FD.
A sample set of values are shown aside.
My guess is you need about 4 seconds for each of these 15 values. Once you know them, you can generate the cashflow for both buy and rent options. As you can see, for this set the npv of rent is higher than buy.
Some observations:
1. House value need to appreciate at really high rates for it to become attractive. Something like 12% YoY. Given the current property prices, 12-15% growth may be unreasonable over a horizon of 12-20 years.
2. On the contrary even if your investments generate a modest 11% return they could be worth so much more than the house.
3. As house cost goes up so is the attractiveness of the rent option.
My conclusion:
I have decided not to buy a house although not entirely based on this. I want to give some more time to myself and that little freedom of having a bulging savings account or whatever.
But if you want to play around and find out if the house is actually working out for you can download the excel sheet I have made. Just use the sliders to change the values, have fun. And let me know how it is. Download the house investment decision maker excel sheet
13 Responses to “Using pivot tables to find out non performing customers”
To avoid the helper column and the macro, I would transpose the data into the format shown above (Name, Year, Sales). Now I can show more than one year, I can summarize - I can do many more things with it. ASAP Utilities (http://www.asap-utilities.com) has a new experimental feature that can easily transpose the table into the correct format. Much easier in my opinion.
David
Of course with alternative data structure, we can easily setup a slicer based solution so that everything works like clockwork with even less work.
David, I was just about to post the same!
In Contextures site, I remember there's a post on how to do that. Clearly, the way data is layed out on the very beginning is critical to get the best results, and even you may thinkg the original layout is the best way, it is clearly not. And that kind of mistakes are the ones I love ! because it teaches and trains you to avoid them, and how to think on the data structure the next time.
Eventually, you get to that place when you "see" the structure on the moment the client tells you the request, and then, you realized you had an ephiphany, that glorious moment when data is no longer a mistery to you!!!
Rgds,
Chandoo,
If the goal is to see the list of customers who have not business from yearX, I would change the helper column formula to :
=IF(selYear="all",sum(C4:M4),sum(offset(C4:M4,,selyear-2002,1,columns(C4:M4)-selyear+2002)))This formula will sum the sales from Selected Year to 2012.
JMarc
If you are already using a helper column and the combox box runs a macro after it changes, why not just adjust the macro and filter the source data?
Regards
I gotta say, it seems like you are giving 10 answers to 10 questions when your client REALLY wants to know is: "What is the last year "this" customer row had a non-zero Sales QTY?... You're missing the forest for the trees...
Change the helper column to:
=IFERROR(INDEX(tblSales[[#Headers],[Customer name]:[Sales 2012]],0,MATCH(9.99999999999999E+307,tblSales[[#This Row],[Customer name]:[Sales 2012]],1)),"NO SALES")
And yes, since I'm matching off of them for value, I would change the headers to straight "2002" instead of "Sales 2002" but you sort the table on the helper column and then and there you can answer all of your questions.
Hi thanks for this. Just can't figure out how you get the combo box to control the pivot table. Can you please advise?
Cheers
@Kevin.. You are welcome. To insert a combo box, go to Developer ribbon > Insert > form controls > combo box.
For more on various form controls and how to use them, please read this: http://chandoo.org/wp/2011/03/30/form-controls/
Thanks Chandoo. But I know how to insert a combobox, I was more referring to how does in control the year in the pivot table? Or is this obvious? I note that if I select the Selected Year from the PivotTable Field List it says "the field has no itens" whereas this would normally allow you to change the year??
Thanks again
worked it out thanks...
when =data!Q2 changes it changes the value in column N:N and then when you do a refreshall the pivottable vlaues get updated
Still not sure why PivotTable Field List says “the field has no itens"?? I created my own pivot table and could not repeat that.
Hi, I put the sales data in range(F5:P19) and added a column D with the title 'Last sales in year'. After that, in column D for each customer, the simple formula
=2000+MATCH(1000000,E5:P5)
will provide the last year in which that particular customer had any sales, which can than easily be managed by autofilter.
Somewhat longer but perhaps a bit more solid (with the column titles in row 4):
=RIGHT(INDEX($F$4:$P$19,1,MATCH(1000000,F5:P5)),4)
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