11:58 AM, 24th February 2014, About 10 years ago 9
I’m preparing some spreadsheets to identify which local properties might offer good returns on investment but I’m getting conflicting advice on how to calculate that return.
I’ve been told that 8% is the minimum ROI, 10% is good, 12%+ great. However the calculations i’m getting from existing BTL investors, books and the interweb are conflicting. Can you help?
The basic formula is ((income/investment) x 100). But how do you define the income – is it net income, gross income? And how can we define investment – is it the purchase price, the deposit?