28 29
Year 2Year 1 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
25,000
20,000
15,000
10,000
5,000
0
ILLUSTRATIVE ANNUAL GROSS RENTAL INCOME AND RENTAL YIELD PERFORMANCE
7.5%
6.5%
5.5%
4.5%
3.5%
2.5%
1.5%
Rental income Rental yield
Rent (EUR) Rental yield (%)
Illustrative 10 year pro t
0 100,000 200,000 300,000 400,000 500,000
Net profit
Balance of profit
EUR
10-YEAR PROFIT
GROSS PROFIT
329,811 151,927
10-YEAR PROFIT
Property price at purchase: EUR320,700
Property value at sale (year 10): EUR620,519
LTV: 70% (EUR224,490)
Mortgage interest rate: 2.90% (25 years)
10-year gross profit: EUR481,738
Rental income: EUR181,919
Capital appreciation: EUR299,819
Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability
P ro
fi t
WHAT WILL MY GROSS RENTAL INCOME BE?
RETURNS MODEL
DISCLAIMER:
Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee |the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore.
WARNING: Property values and rental yields can fall as well as rise.
1 2 3 4 5 6 7 8 9 10
RENTAL INCOME 14,400 15,358 16,277 17,153 17,985 18,770 19,507 20,196 20,839 21,435
RENTAL YIELD 4.5% 4.8% 5.1% 5.3% 5.6% 5.9% 6.1% 6.3% 6.5% 6.7%
10-year gross rental income: EUR181,919
DISCLAIMER:
Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee |the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore.
WARNING: Property values and rental yields can fall as well as rise.
Rental income Rental yield
ILLUSTRATIVE RETURNS MODEL ILLUSTRATIVE RETURNS MODEL
