Cash-On-Cash Return - Business concept of the day

Cash-On-Cash Return - Business concept of the day

Business Development

GlobalLinker Staff

GlobalLinker Staff

31 Aug 2018, 14:15 — 1 min read

Definition: The cash on cash return measures the annual return the investor gains on the total value of property paid. It measures the percentage of pre-tax inflows received for a year over the total value of the property.

Example: 10,000 rent per month on a 10,000,000 valued property will give you a 1.2% cash on cash return for the year.

Business insight: Comparing this figure between several other real estate investments can help you evaluate performance of your real estate assets and help you make prudent investment decisions.

 

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GlobalLinker Staff

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