How to Calculate ROI on UK Property (Step-by-Step Guide)
Summary
AI-generatedLearn how to accurately calculate the Return on Investment (ROI) for your rental properties, distinguishing it from yield. This guide breaks down the essential formula and factors in all associated costs for a true profit assessment.
Key insights
A 10% ROI might seem acceptable, but it means it would take 10 years to recoup your initial investment, suggesting the real profit often comes from capital appreciation.
Mistakes to avoid
Mistaking mortgage principal repayments as an expense for ROI calculation. Only the interest portion of the mortgage payment is a deductible expense.
Tools & resources
Free Online Trainingcourse
Samuel Leeds offers free online training sessions covering property finding strategies and tax efficiency for investors.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial