How do you calculate net income, returns or yield?

Net income represents the figure that is paid back to you as an investor. It is shown with all fees, costs and expenses deducted. The calculation is made using all of the financial assumptions that we have about a property. These assumptions can be viewed as part of the details for each opportunity. The deductions are all known costs, such as the 5% Property Moose fee, legal costs and insurance.

Initially, these deductible known costs are taken from the projected rental income and projected capital growth. When a property is tenanted, the realised net rent is paid back to investors. The total projected returns figure is calculated by aggregating the projected net property sale price and the projected net rental income. The property value projections are based on market comparables, and Savills’s 5 Year Forecast.

At the end of the investment term, investors will vote upon the exit strategy. If the property is sold on the open market, or if it is sold to the crowd, proceeds from the sale are paid to investors exiting this investment.

We only show projected net figures because we don’t want there to be any hidden costs. This transparency is crucial and we hope it builds trust with our members.