As a real estate investor, I can tell you how much return on investment property is good. But before that, let me tell you a bit about return on investment (ROI) in real estate. ROI is a percentage that represents the profit or gain on an investment relative to its initial cost. A good ROI for a rental property is usually considered to be between 8% and 12%.
What is a Good ROI on an Investment Property?
12% or higher ROI is considered outstanding for investment property in India. However, it varies based on the following factors.
- Type of Property You Acquire:
The return on investment of various properties, such as single-family homes, apartments, and commercial real estate, will vary.
- Your Property Location:
ROIs are often greater for properties in sought-after areas with strong rental demand.
- Latest Market Conditions:
Rental rates and property values get impacted by local market conditions as well as the situation of the real estate industry as a whole.
- Property Management Expenses:
Costs like insurance, maintenance, and property taxes can impact on net operating income and, in turn, profitability.
To calculate ROI on a real estate rental property, use this formula:
ROI =
(Gain on investment – Investment Cost) / Investment Cost
I hope you found this information useful.
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How much Return on Investment Property?
Krush4
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6 months
2025-07-11T08:20:14+00:00 2025-07-11T08:20:15+00:00Comment
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