Analysis of performance

Property performance

The rent you are receiving on your property is $100 per week for 52 weeks, which is $5,200 p.a.

There are expenses of $800 p.a., so your net rent income is $4,400.

In addition your property value has increased by $3,000.

So your total return is calculated as follows:

Rent received        $5,200

Less: expenses       ($800)

Add capital growth $3,000

Total return           $7,400.

The total return is $7,400 on your $100,000.

To express this as a percentage it is $7,400 divided by $100,000. The return for the property is 7.4% (0.074).