25/08/2023
In real estate, ROI is the metric that real estate investors use to determine their profitability from an investment property. The profit and gain in the investment is measured after comparing it to the original cost of the property, and the income it generates from the percentage of the price. What factors affect the return on real estate investment? Real estate investment returns in Turkey differ radically according to a set of data, for example: First: the location and importance of the property: it is likely that selling a property in a desirable location will be higher than the property in a less desirable location, its proximity to schools, parks, or Markets, as well as its proximity and distance from the city center or the seashore, its views, and the location of the property in a serviced residential complex or in an ordinary building, are all factors that affect investment. Second: Property type: residential (villa, apartment...) - or commercial (office, shop, hotel...). Third: The size of the property: it is natural that the space plays a role in determining the price and return on investment, whether it increases or decreases. Fourth: The age of the property: Of course, modern real estate is more popular than its old counterparts, and the sale of real estate that needs to be repaired
How to calculate the return on real estate investment In short, we can say: Total investment return: It is the amount of money you earn from selling or investing the property, minus any closing costs or other expenses. For example: If someone buys a property for $200,000, then sells it for $250,000, but after doing $10,000 worth of repairs, the total profit will be $40,000, and the return on investment will be approximately 19%.