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What are the investment standards for office buildings? What kind of office building is worth investing in?

Whether the office building invested in the early stage is valuable can be estimated by the following three formulas:

Estimation formula of investment value of office building;

The rent multiplier is less than 12, which is a simple formula for comparing the total selling price with the total annual rental income (rent multiplier = investment amount/annual potential rental income), which is less than 12.

Two formulas for estimating the investment value of office buildings: 8- 10 years to recover the investment.

The payback period method considers the rent, price and the main input in the early stage, which is more suitable than the rent multiplier and can also estimate the length of the payback period. Its formula is: investment recovery period = (first mortgage repayment)/(monthly rent-monthly mortgage repayment) the purchase price of the property, so the value of the property has been overestimated.