Formulas for real estate investments - Expert Real Estate Surveyor

ROI is a key measure for assessing the profitability of a project. real estate investment. It is calculated by dividing the net profit (benefit) obtained from the investment by the initial cost of the investment and multiplying by 100 to obtain a percentage.

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The cash yield is used to assess the profitability of a real estate investment based on the net cash flow generated by the property relative to the initial investment.

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The capitalisation rate is a metric that compares the net operating income of a company to the net operating income of a company. property with its value market value. It is used to determine the profitability of the property independent of financing.

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NPV is used to assess the profitability of an investment over time, taking into account future cash flows and the desired discount rate. A positive NPV indicates a profitable investment.

The IRR is the discount rate that makes the net present value of the cash flows of an investment equal to zero. It is a measure of the return on investment over time.

This formula calculates the value of a property based on its surface area. It is especially useful for comparing similar properties.

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The leverage ratio measures the proportion of financing used in an investment. It is calculated by dividing the debt used to acquire the property by the total value of the investment.

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