Return on Investment

In general terms, return on investment (ROI) refers to the amount of money gained versus the amount of money spent on an investment, whether realised or unrealised.

If you are renting, ROI refers to the property’s yield - a percentage of income return against the amount financed.

When you’re developing a property, the main goals are affordability, income potential (for rentals) and capital growth. Firstly you must be able to afford the property, and secondly you must look for maximum possible income potential and capital growth to optimise your return on investment.