What is the rent-to-sale ratio?
1, the specific meaning of rent-to-sale ratio. Rent-to-sale ratio generally refers to the ratio of housing rent to selling price summarized by ordinary consumers. Usually, the rent-to-sale ratio refers to the ratio of monthly rent to total house price. The concept of rent-to-sale ratio is one of the international indicators to measure whether the property market in a certain area is running well. The international standard is usually 1: 100 to 1: 200. The higher the ratio, the greater the demand in the house price.
2. Example: the rental ratio of houses and the rental ratio of equipment of leasing companies. The so-called "rent-to-sale ratio" refers to the ratio of monthly rent per square meter of usable area to house price per square meter of construction area. In the normal real estate market, there is a relatively fixed proportional relationship between rent and selling price, and its rent-to-sale ratio is roughly 1: 100.
What should the rental-to-sale ratio be?
1. According to international standards, the reasonable rental-sales ratio of house prices should be within 1: 250. This ratio means that if you rent a house at the current rent, it will take 100 to 250 months (roughly equivalent to 10 to 20 years) to recover the house payment, which is cost-effective. The higher the ratio, the greater the demand in the house price. If the payback period is longer than this, renting a house will be more cost-effective. People often use this indicator to measure the value of real estate.
2. According to the statistics of real estate agencies such as I love my family and Jia Lian Real Estate, the "rent-to-sale ratio" in urban areas such as Beijing, Shenzhen, Shanghai and Hangzhou has reached 1: 270 to 1: 400. Because renting a house reflects a real housing demand, when the real estate price of a city rises rapidly but the housing rental market price does not rise obviously, it shows that there is inflated price or speculation in the real estate market in this area.
Conclusion: This paper analyzes what is the rental-to-sale ratio and how much is reasonable. The explanation of relevant knowledge tells us that the rent-to-sale ratio generally refers to the ratio between the rent and the selling price of houses by ordinary consumers. Usually, the rent-to-sale ratio refers to the ratio of monthly rent to total house price. What should the rental-to-sale ratio be? Generally, it is reasonable to be within 1: 250. I hope this article can bring you some help.