How To Calculate The Return on Investment (ROI) of Real Estate & Stocks
The Organic Chemistry Tutor・9 minutes read
Various individuals engaged in real estate and stock investments resulting in significant returns, with Susan achieving an impressive 250% total return on investment over a 10-year period through rental income and property sale, averaging a 25% annual return.
Insights
- Susan achieved a remarkable 150% return on investment solely from rental income over ten years on a $80,000 condo, showcasing the potential of real estate investments for long-term gains.
- Susan's total return on investment of 250% over ten years, with an average annual return of 25%, highlights the significant financial growth that can be attained through a strategic combination of rental income and property appreciation.
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Recent questions
What is the average return on investment for Susan's condo?
25%
How much did John sell his home for?
$325,000
What was Karen's return on investment for the stock?
35%
How much did James earn annually from his condos?
$48,000
What was the total return on investment for Susan's condo?
250%
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Summary
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Real Estate and Stock Investment Success Stories
- John purchased a home for $250,000 in 2019 and sold it for $325,000 five years later, resulting in a 30% return on investment.
- Karen bought 500 shares of stock at $20 each, totaling $10,000, and sold them for $13,500, achieving a 35% return on investment in three months.
- Luke invested $100,000 in a two-bedroom condo, earning $12,000 annually in rental income, equating to a 12% return on investment.
- James bought four two-bedroom condos for $100,000, earning $48,000 annually in rental income, resulting in a 48% return on investment.
- Susan purchased a two-bedroom condo for $80,000 in 2019, earning $120,000 in rental income over 10 years, yielding a 150% return on investment solely from rental income.
- Susan sold the condo for $160,000 in 2029, doubling her investment, resulting in a 100% return on investment from the sale of the property.
- Susan's total return on investment, considering both rental income and property sale, was 250%, with an average annual return of 25% over the 10-year period.
