Measures annual cash income relative to cash invested in a property.
Annual pre-tax cash flow — Annual tax cost. Added to housing or business cost; verify with local authority. Example: 0.1.
Annual pre-tax cash flow is required
cash invested — Financial input. Directly drives affordability, yield, or cost; small changes compound over time. Example: 0.101.
cash invested is required
Measures annual cash income relative to cash invested in a property.
Formula
cocReturn = annualPreTaxCashFlow ÷ cashInvested