Job Recruitment Website - Property management - When analyzing the breakeven of real estate investment projects, is it correct that the higher the highest operating expense ratio, the stronger the risk resistance of investment projects?
When analyzing the breakeven of real estate investment projects, is it correct that the higher the highest operating expense ratio, the stronger the risk resistance of investment projects?
correct
Operating expenses ratio refers to the ratio of operating expenses of investment properties to total rental income. The higher the ratio, the lower the net operating income of the investment project, which will affect the investment performance of the investment project. The maximum operating expense ratio refers to the operating expense ratio when the investor's expected income target is reached. The higher the highest operating expense ratio, the stronger the risk resistance of investment projects.
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