How to calculate the potential Return on Investment (ROI) of a property
So here’s the important part of investing!
Depending on what you plan to do with your investment property, it can offer two primary sources of revenue as follows:
- Capital Growth: The amount by which a property increases in value between buying and selling it, where York’s market is in the early stages of growth at present.
- Rental Income: High rental demand in York is forcing rental income upwards, offering an attractive investment potential in the current climate.
The InvestorsForum York offers all the resources and expertise to advise potential buyers on secure investment opportunities. We have a depth of experience relating to both current and past market conditions, together with key factors which have or will influence the property market and your potential for capitalising on individual properties within this location.
Our team of Investment Consultants have carried out thousands of rental valuations within the city over more than 20 years. Today they share this knowledge with our members by offering full market and rental appraisals free of charge, to help buyers calculate potential yields as accurately as possible.
Here’s what information you need to calculate an accurate ROI:
STEP 1: Rental Valuation
Once you have a property in mind, get a realistic yearly rental valuation from a specialised letting agent who knows the York market well. Click here to book one today free of charge with the InvestorsForum York – we would love to help!
STEP 2: Associated Costs
Develop a yearly budget for costs associated with the property including items such as: Insurance; Compliance; Wear & Tear; Ground Rent (if applicable); Unoccupied periods; Management Fee; and Mortgage Repayments. Click here if you would like help with budgeting.
STEP 3: Make the Calculation:
a) Rental Valuation – Associated Costs = Net Rental Income
b) Net Rental Income / Property Value x 100 = % Rental Yield
For help with planning your investment or advice with sourcing the best opportunities within the York area, please contact one of the team as below: