How many years do you need to get your money back from renting and apartment ?
ROI- Return of Investment a strong indicator for investment.
Munich, Hong Kong, and Tel Aviv have the highest price-to-rent ratios, followed by Frankfurt, Geneva, and Zurich. Extremely high multiples indicate an excessive dependence of housing prices on low interest rates. Almost half of the covered cities have price-to-rent multiples above or close to 30. House prices in all these cities are vulnerable to a sharp correction should interest rates continue to rise.
Pric
e to rent in U.S.A
Price-to-rent multiples in some US cities have recently increased despite a strong inflation in rents. Nevertheless, Boston, San Francisco, Los Angeles, New York, and Miami exhibit the lowest multiples among the markets analyzed.
Other Global Cities
These reflect, among other things, higher interest rates and relatively mild regulation of the rental market. Conversely, rental laws in
Conversely, rental laws
France, Germany, and Sweden are strongly pro-tenant, preventing rentals from reflecting true market levels.
However, stratospheric price-to-rent multiples not only reflect low interest rates or strong rental market regulation, but also expectations of rising prices, as is the case in Zurich and Munich.
Low Rental Yields
Investors anticipate being compensated with capital gains for very low rental yields. If these hopes do not materialize and expectations deteriorate, homeowners in markets with high price-to-rent multiples are likely to suffer significant capital losses.
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