If you are investing in real estate then you generally need to calculate your expected gross rent return on investment. This is the basic method;
Annual rent received, divided by the purchase price = The final figure will be your gross rent return. Multiply this by 100 if you wish to express this as a percentage.
For example, $18 200 annual rent received ($350 per week) on a $300 000 property purchase shows a 6 per cent gross rent return. The sum is worked out as follows:
$350 (per week) x 52 = $18 200 divided by $300,000 (purchase price) = 0.0606 and multiply this by 100 = 6.06%. That is at the end of the year you will have received a 6.06 per cent gross return on your $300,000 purchase price. If you do this for each of your alternative property choices, you will quickly see which one offers the highest return.
Natalie and Jodi the sales team @ Real Estate Yeppoon would love to help you find a suitable investment property and Troy the Property Manage @ Real Estate Yeppoon will be able to ensure you maximize your return on investment. Call the office on 07 4819 9676 to discuss your requirements.