The Expected Total Return displayed on the Piece platform is a projected rate calculated as the sum of the expected interest return (income component) and the expected appreciation return (property price appreciation component).
1. Expected Interest Return (Income Component)
This calculation projects the annualized income generated by the property based on rent, minus all operating costs.
2. Expected Appreciation Return (property price appreciation component)
This calculation projects the percentage increase in the property's value over the entire investment period, converted into an annualized rate.
Gross vs. Net Return Clarification
The displayed expected return on the Piece platform is calculated on a gross basis (before taxes). To calculate your final net return, you need to deduct any tax withheld in accordance with applicable German and local tax laws.