How to calculate the return on investment in office buildings?

According to the current general calculation formula: the return on investment after renting = monthly rent × 12 (month)/selling price.

For example, there is a writing room with an area of about 1 10 square meter and a price of about 7000 yuan/square meter. According to the property analysis around the office building here, the monthly rent is around 4,000 yuan, and the return on investment of this office is calculated to be 6.2%. Investors can control their own capital flow according to the return on investment.

Extended data:

In addition to buying real estate, investors often have financial options such as bank deposits, government bonds, real estate trust products and stocks of listed real estate companies. By comparing the rate of return of specific real estate investment with the rate of return of various financial management methods, investors can be helped to measure the actual rate of return of real estate projects.

Mainstream real estate investment return rate index

Real estate investment return indicators are also varied. As an investment behavior, investors are concerned about income and risk. Through the analysis of internal rate of return method, it is found that the highest correlation is house price and rent. Here are three indicators, mainly used in housing prices and rents.

1, the return on investment (rental return) we often see is more static rental return. It is the ratio of rental income to real estate market price in a year. Rental income during the year is net rental income after deducting housing operation, management, relevant tax rates and vacancy rate. The greater the ratio, the more worthwhile the investment.

2. The long-term rental rate of return is based on the static rental rate of return, considering the dynamic growth of rent. Total income from long-term rental after the owner purchases the property.

3.5 The resale rate of return after lease refers to the rate of return obtained by purchasing real estate and renting it out for sale at the end of the fifth year, including the rental income and value-added income of real estate in these five years. Considering all the investment and income during the investment period, investors can judge the best time to sell back according to the rate of return.

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