REIT Property Representative Practice Exam

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What is the net return for a property if the gross return is $20,280 and total outgoings amount to $4,846.6?

$15,433.4

To determine the net return for the property, you can use the formula:

Net Return = Gross Return - Total Outgoings.

In this case, the gross return is $20,280, and the total outgoings amount to $4,846.6. Plugging in these values:

Net Return = $20,280 - $4,846.6 = $15,433.4.

This calculation shows that the net return, which represents the actual amount of income remaining after deducting the expenses associated with the property, is $15,433.4. This value accurately reflects the financial performance of the property after accounting for total outgoings, making it the correct choice.

Understanding this calculation is essential in property investment as it helps assess the effective income generation attributed to the property after necessary costs.

$20,000

$16,700

$14,700