What does the faster roi improvement of auto mean?

Faster return on investment means return on investment. ROI stands for Return on Investment.

The rate of return on investment refers to the economic return obtained by investment in investment and business activities, which is a ratio used to measure the profitability of a project or enterprise, and also a comprehensive index to measure the operating effect and efficiency.

return rate

Generally speaking, shops can recover their investment in about 8 years, and then the annual rental return rate can generally reach 8%, and good commercial shops can reach more than 16%. Of course, different shops have different situations. There are two formulas that can be used to calculate.

The first method is mainly suitable for one-time investment and does not require loans. The calculation formula is: (monthly rent after tax-monthly property management fee) × 12 = annual rental income. Annual rental income ÷ total price of shops purchased = annual return on investment. On the contrary, the total purchase price of shops ÷ annual rental income = investment payback period.

The second method is mainly applicable to the income calculation of loan investment. The calculation formula is: (monthly after-tax rent-monthly mortgage interest-monthly property fee) × 12 = annual rental income. (Down payment+mortgage loan) Annual rental income = years of return on investment. On the other hand, investing with annual rental income ÷ (down payment+mortgage loan) = annual investment return rate is of course to make money.