08.10.2025 • 6 min. reading time
Content of this article
The purchase price factor is a key figure in real estate valuation that describes the relationship between the purchase price and the annual net cold rent.
Formula:
Purchase price factor = purchase price / annual net cold rent
Example:
A house costs €1,000,000, the annual rent is €50,000
→ Purchase price factor = 20.
The lower the purchase price factor, the faster the investment is amortized through rental income.
Calculating the purchase price factor - step by step
Formula
von Poll Immobilien GmbH is a company steeped in tradition and, with over 400 stores and more than 1,500 colleagues, is one of the largest real estate companies in Europe. The head office of our company is located in Frankfurt am Main. Our clients are owners and prospective buyers of properties of stable value in prime residential and commercial locations.
