COMMERCIAL PROPERTY INVESTMENT
A considered view
of opportunity.
Retail investments, commercial freeholds, tenanted premises and income-producing assets. Assess the property, the information and your own assumptions.
Tell us about your plans
Your ambition. Your next chapter.YOUR ASSUMPTIONS
Run the numbers.
The starting values are hypothetical. Replace them with your own figures. No return is guaranteed.
ILLUSTRATIVE RESULTS
- Gross rental yield
- 8.00%
- Net operating income
- £19,800
- CAP rate (NOI ÷ price)
- 6.60%
- Net yield including purchase costs
- 6.29%
- Annual debt service
- £0
- Estimated annual cash flow
- £19,800
- Cash invested
- £315,000
- Cash-on-cash return
- 6.29%
Formulas and assumptions
Gross yield = rent ÷ price. NOI = rent × (1 − vacancy %) − operating expenses. CAP rate = NOI ÷ price. Net yield = NOI ÷ (price + purchase costs). Cash flow = NOI − annual debt service. Cash-on-cash = cash flow ÷ (price + costs − loan).
Repayment uses monthly amortisation at a fixed interest rate. At 0% interest, debt service = loan ÷ term. Interest-only debt service = loan × rate. Excludes tax, capital growth, sale proceeds, financing fees and costs you have not entered. Enter SDLT or applicable purchase taxes, legal fees and other acquisition costs in purchase costs; these are not calculated automatically.
YOUR INVESTMENT REQUIREMENTS
Start with your goals.
Tell us about your preferred location, budget, property type and timescale. Returns depend on the property and your actual costs.