Second, the link is about real estate investment trusts. There is various figures and statistics about macro-level trends, but nothing really about residential, self-storage or renting out commercial buildings. It discusses “investment properties” solely in terms of appreciation and REITs.
So what is the difference between CoC and ROI? Besides how CoC doesn’t factor in equity, CoC doesn’t account for appreciation. Therefore, ROI will usually be higher than the CoC return.
Second, the link is about real estate investment trusts. There is various figures and statistics about macro-level trends, but nothing really about residential, self-storage or renting out commercial buildings. It discusses “investment properties” solely in terms of appreciation and REITs.
So what is the difference between CoC and ROI? Besides how CoC doesn’t factor in equity, CoC doesn’t account for appreciation. Therefore, ROI will usually be higher than the CoC return.