Rate of Return on Real Estate

The Domesday Book - William's control of England - KS3 History - homework  help for year 7, 8 and 9. - BBC Bitesize

What is the rate of return on real estate?

Basically: 5% per annum!

And, that’s measured over long periods of time. Sometimes, it’s less and sometimes it’s more, but over the long run it’s fairly close to 5%.

There’s about 1,000 years of history to go with this. In 1066, William the Conqueror took over England. He brought in the Domesday Book which was the first tax roll. A property in Essex was assessed as having a value of 30 pounds. Twenty years later it was reassessed. There were no major improvements to the property. It was then worth 60 pounds. It doubled in value in twenty years. That’s a 5% annual rate of return.

The same thing is true today. In major urban areas which are higher sought after, this rate can be slightly more. For the GTA, we might reasonably be up to 6 To 6.5%.

Brian Madigan LL.B., Broker


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