How can the marginal rate of return be used to decide when to sell a property?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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How can the marginal rate of return be used to decide when to sell a property?

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The following are the factors that cause a change in marginal rate of return over time,

An increase in valuation properties and an increase in rentals are expected to increase the marginal rate of return. The equity builds up from cost growth and debt servicing however, helps to lower the marginal rate of return.

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