Pivotal to building a successful property portfolio is knowing whether or not your rental property has got the potential to generate a strong return on investment once you have invested in it.
As we say this we do not mean the monthly positive cash flow your property generates. It is slightly more complicated than that...
To gain a real awareness of your properties return on investment you need to look at its annual cash flow in correlation with the properties altering value. A task which at Property Mentor we can help you with.
Using our Property Mentor Finance Team, we can calculate - on your behalf - your properties annual positive cash flow and help you to determine the true profitability of your property.
Alternatively, you can take advantage of our return on investment calculator...
Through the use of a return on investment calculator, the only information you will need to be aware of is the number of properties you want to invest in; the average cost per property and its expected net return.
Return On Investment Calculator
No. of properties
Average cost of each property (£)
Expected Net return
Your Return On Investment Results
Annual Positive Cash Flow
ROI after 5 Years (Partner Discount)
Current Value of Property Portfolio
Value of Property Portfolio in 10 years
To acquire this information, simply make sure - when you are researching and stacking your properties - that you take into consideration the following:
The number of properties you want to invest in - at times opportunities will come your way that will involve a multiplex of properties. If that is the case, a return on investment calculator can help you to assess the profitability of these properties as a whole unit.
The average cost per property - property values are expected to double every 10 years. With this information in mind it is important to have an awareness of how much your property is worth and its possible future capital gains.
Their expected net return - this deducts the monthly repayments of the property and focuses on the passive income that is left (per property).
Need help stacking and structuring your properties?
By simply signing up to one of our FREE 2 hour taster sessions today you too can discover how to efficiently stack your properties and ensure that your ALL your property investments produce strong return on investments, each and every time!
Call us today on 01908 309274 and experience the difference of quality expert advice.