[Adrian123]

Originally Posted by QCStone

example:
200k Capital Introduced (CI)

1000 PCM Return on Capital Employed (ROCE)

Take the annual Rental figure of 1000 times 12 months = 12,000

Divide the annual rental income against Capital Introduced

Voila

6%

Thanks. But what about expenses, such as property taxes or any maintenance charges? Should they not be factored in?

Also, at what yield does the property become an attractive buy?