Return on investment (ROI) is a measure of how much profit or value an investment generates relative to its cost, expressed as a percentage.
In real estate, ROI accounts for factors like property appreciation, rental income, tax benefits, and the costs of ownership including mortgage interest, maintenance, and management fees. A complete ROI calculation for a second home should also consider the personal value of using the property — something spreadsheets often miss. Higher ROI is better, but realistic projections require honest accounting of all expenses.
GoForth, a luxury co-ownership company, helps owners think about ROI holistically. On the financial side, owners benefit from appreciation on a luxury asset at a quarter of the buy-in. On the lifestyle side, 12 weeks per year in a professionally managed home delivers personal value that a purely financial investment cannot match. GoForth's transparent cost structure makes it straightforward to calculate your real return.