At Vaal Real Estate, our team of experienced property advisers offer expert advice on maximising Return on Investment (ROI) in the real estate market. With a thorough understanding of the industry and access to the latest data and analysis, our advisers provide clients with insights that enable them to make informed decisions when buying, selling, or managing real estate.
VAAL Real Estate stands out as the preferred option, making it the perfect partner for local and international investors seeking peace of mind and high returns on their investments. We have an impressive track record of completing projects globally, earning us a sterling reputation for delivering quality and timely outcomes.
Our presence in Kenya, Turkey, Ghana, and Uganda as well as strong relationships in other markets, offers clients a wider reach for diverse property options. In Ghana, we currently have two ongoing projects: Harmonia Residence, a 17-story mixed-use apartment complex consisting of studios, 1, 2 and 3 bedrooms, and a five-bedroom sky villa at Airport West.
The second project is Harmonia Villas which consists of eight units of elite five-bedroom townhouses in Cantonments. Each townhouse is equipped with private amenities, including private swimming pools.
In November 2023, VAAL is set to launch two new projects: Legato Heights, a luxury high-rise apartment building made up of 20 floors & Nirvana Villas; a gated community of 8 elite townhouses. Both projects are located in the prime location of Ridge.
WHAT IS ROI?
In real estate, ROI measures how effectively an investor’s capital is utilised to generate income. It determines the success of an investment and helps investors to assess the worth of their investment.
THE IMPORTANCE OF ROI FOR REAL ESTATE INVESTORS
- PROFITABILITY EVALUATION: Investors can decide whether an investment is financially sustainable by comparing the original cost of acquiring a property to the income earned from it.
- RISK MANAGEMENT: This is done by considering related factors such as location and market conditions as this helps investors to make informed and balanced decisions. It is important to note that a high ROI does not necessarily indicate a lower level of risk, as the two factors do not always correlate with each other.
- COMPARISON OF INVESTMENT OPTIONS: It gives a common criterion for analyzing and selecting the most promising alternative when picking between two properties or assessing various investment techniques.
To calculate ROI in real estate, compare the amount you invested in the property, including the initial purchase price plus any further costs, to its current value. This is done by dividing the PROFIT [investment gain – cost of investment] by the cost of investment and multiplying by 100%.
ROI & VARIOUS INVESTMENT STRATEGIES
- Rental Properties: The return on investment (ROI) for rental properties is calculated by comparing rental revenue to expenses and property acquisition costs.
- Fix-and-Flip: For fix-and-flip properties, the ROI is determined by subtracting the costs of purchasing and remodelling a property from the profit earned by selling it at a higher price.
ROI is a crucial indicator that guides real estate investors toward financial success by helping them make informed decisions, measure profitability, manage risks, and modify strategies to achieve long-term financial goals. While the ROI percentage is valuable.
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