What are Rent to Buy Homes?

The rent-to-price ratio refers to the ratio between the house price per square meter and the monthly rent per square meter, which roughly reflects the investment return obtained by the house by rent.

Rent-to-price ratio

A 90-square-meter house in a residential district in Shanghai is currently priced at 18,000 yuan / square meter, with a monthly rent of 2700 yuan (without furniture), or 30 yuan per square meter. The rent-sale ratio is about 1: 600, which is half of the international standard line of 1: 300. It means that the value of real estate investment in Shanghai has become relatively small, and a real estate bubble has already appeared.

Attachment: Its practical rent-sale ratio describes the price of the house, which is not as good as using the rent-sale ratio, which is about to reverse the value. This is the reciprocal (1 / x) just mentioned.