The value of a rental property is estimated on the basis of several criteria, in particular the amount of rent received, and the expenses associated with the management and maintenance of the property. The rent is generally the most important criterion for estimating the real value of an investment property, as it is this amount that will determine the potential income that the new owner can expect to receive.
The return on a property is calculated according to the ratio between the amount of rent received and the purchase price of the property. The higher the ratio, the more attractive the return.
To calculate the rental yield of a property, the amount of rent received per year is divided by the purchase price of the property. If the property was purchased for CHF 10,000,000 and the rental income received is CHF 500,000 per year, the yield will be 5%.
It is important to take into account several factors to determine whether a property has a good rental yield, as the purchase price is not the only element to take into account. You also have to look at the management costs, the work to be done, the tax system, etc.
A property can produce a return on investment without being profitable. This means that the rent received covers the costs, but the property does not generate a profit. For a property to be profitable, the rent received must be higher than the costs of running it.
If you want to sell your rental property at the best price, there are a few things to consider. First, it is important to estimate the value of the building. This can be done by consulting a real estate broker or by using a property valuation tool. It is also important to find out the price per square meter of similar investment properties in the area or city in question.
Once you have obtained a value estimate for your investment property, it is important to maximise it before putting the property up for sale. This means that you may have to do some renovation work to make it more attractive to potential buyers.
Finally, it is important to choose the right time to sell and, above all, to be accompanied throughout the process by a professional. A real estate broker or an agency specialising in commercial property transactions will help you set a realistic price based on the local market conditions and will introduce you to qualified investors in order to make a sale at the best price and in the shortest time possible.
RealAdvisor experts are experienced and qualified real estate professionals. They all have extensive knowledge of the real estate market and are able to provide the most appropriate advice to sellers and investors.
RealAdvisor real estate professionals are committed to providing quality service to their clients and do their utmost to enable them to sell or buy their investment property at the best possible price and under the best terms. They are also available to answer any questions you may have throughout the sale or purchase of your investment property.
By entrusting your real estate investment project to a RealAdvisor expert, you are assured of a professional and personalised service, support and expertise widely recognised in the real estate market.
