How To Work Out the RETURN ON INVESTMENT on Properties | Samuel Leeds

Folks, one of the most important things to remember when buying a property is to buy with logic, not emotion. What I mean by this is to work out the ROI to ensure that the property you plan on buying is worth it in the long term.  


I bet you are sitting there thinking, Samuel, how do I do this?


  1. You need to consider how much money you are putting IN the deal, for example: deposit, any refurbishments, legal fees, stamp duty etc.


  1. How much annual PROFIT are you going to be receiving from the property.


Take the annual profit minus the expenses (typically 20%) which can be anything from management fees, mortgage, maintenance, divide it by the total investment x 100


Write this down…


Annual Profit



Total Investment






There you have it, your annual ROI!


Before considering to buy any property, you need to ensure that the ROI is 20% or above and on top of this, you are going to benefit from capital appreciation.


Thanks for reading guys, catch you next time!


FOLLOW ME on social media:

Get Sharing!