Gross Income Multiplier

Filed Under »
Dictionary Says

Definition of 'Gross Income Multiplier'

A rough measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. GIM is used in valuing commercial real estate, such as shopping centers and apartment complexes, but is limited in that it does not consider the cost of factors such as utilities, taxes, maintenance and vacancies. Other, more detailed methods commonly used to value commercial properties include capitalization rate (cap rate) and the discounted cash flow method.

 

 
Investopedia Says

Investopedia explains 'Gross Income Multiplier'

The gross income multiplier can be used to roughly determine whether the asking price of a property is a good deal. Multiplying the GIM by the property's gross annual income yields the property's value, or what it should be selling for.
Search results for

'Gross Income Multiplier'

  • How To Value A Real Estate Investment Property

    http://www.investopedia.com/articles/mortgages-real-estate/11/valuing-real-estate.asp
    ... appropriate discount rate for real estate is similar to discounted cash flow (DCF)
    valuations for stock, while integrating the gross income multiplier model in ...

  • CFA Level 1 Study Guide - Macroeconomics - Gross Domestic Product ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/gross-domestic-product.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Alternative Investments - Real Estate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/real-estate-calculations.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Financial Statements - Income Statement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/income-statement-non-recurring.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Macroeconomics - The Multiplier Effect ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/multiplier-effect.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Equity Investments - DDM and the ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/ddm-dividend-discount-model-earnings-multiplier.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • 4 Ways To Value A Real Estate Rental Property

    http://www.investopedia.com/articles/mortgages-real-estate/11/how-to-value-real-estate-rental.asp
    ... This rate is simply the projected annual income from the gross rent multiplier
    divided by the original cost or current value of the property. ...

  • CFA Level 1 Study Guide - Macroeconomics - Introduction ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/default.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Liquidity ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/liquidity-risk.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Interest Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-risk.asp
    ... Macroeconomics: 4.1 Introduction; 4.2 Gross Domestic Product ... DDM and the Earnings
    Multiplier; 13.5 Developing ... Fixed Income Investments: 14.1 Introduction; 14.2 Bond ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links