Capital investment through the returns achieved on a property

Capital investment – If a property is rented out and the landlord achieves a return through rental income, an important criterion for the possible designation as a capital investment is given. Another criterion of a real estate investment is that the relationship between purchase price and annual rental income must be correct. The purchase price factor must be 10 to 25 times.

Capital investment at a glance: Specification of payments over a certain period of time

• Rented property must earn a return through rental income to be an investment
• Ratio between purchase price and annual rental income must be correct: The purchase price factor must be 10 – to 25-fold

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