How to determine a property’s value? Calculating return of investment?
Monanasuniverse Monanasuniverse
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 Published On May 5, 2024

#Condo #Adulting101 #realestateph #ofwlife
Hello,
So you're probably here because you're starting your condo business journey.
In this video: 6 things to be cautious about and looking out for property score and ROI.

What is Property Score?
In simpler terms, a property score is like a grade or rating that tells you how good or desirable a property is as an investment. It takes into account things like location, size, potential returns, marketability, and other factors that can impact its value and appeal.

For example, if a property has a high score, it means it's considered very desirable and likely to be a good investment. On the other hand, a low score might indicate that the property has some drawbacks or risks that make it less attractive as an investment.

Overall, a property score is a helpful tool for investors, buyers, and sellers to quickly assess the relative merits of different properties and make decisions based on their individual needs and preferences.

Return on Investment (ROI) is a simple way to measure the profitability or success of an investment. It tells you how much money you've made or lost relative to the amount of money you initially invested.

Assuming:

Initial investment (property value) = PHP 4,900,000
Long-term monthly earnings = PHP 25,000
Short-term earnings (annual) = PHP 70,000

To calculate the ROI, we'll first determine the total profit generated over a certain period (let's use one year for this example). Then, we'll divide the profit by the initial investment and express it as a percentage.

So, based on the given setup, the total profit generated over one year is PHP 370,000, and the ROI is approximately 7.55%. This means that for every PHP 1 invested in the property, the return is approximately PHP 0.0755 after one year.

I hope the following tools would help you.

Property score and ROI calculator: https://docs.google.com/spreadsheets/...

If you're interested in Cebu properties, you can send me an email at [email protected]

Blessings!
#PhilippinePropertyInvestment

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