Return on Investment (ROI)

September 9, 2019

Investors constitute around 50% of general south all market. This episode looks into the return on investment (ROI) and maintenance.

The main goal when calculating numbers on an investment property is to reach a ROI of 5% on residential property and higher on commercial property. Anything over 4% in the current market is quite good and the property basically ends up paying for itself. With the current very low interest rates, the ROI can be lower and still might perform well. Remember, investment is a long term game with long term gains. It is important not to get too bogged down with the ROI though as there are a few more things to consider e.g. maintenance. Look at the condition of the property and make sure there is a balance between the cost of maintenance and return of investment.