Officetel Yield Calculator

Officetel Yield Calculator helps compare Korea-related property income, yield, purchase cost, and holding-period scenarios in English.

Officetel yield calculator

Uses the Korean officetel yield model for business or residential use, acquisition tax, VAT refund, property tax, vacancy, loan leverage, rent, and optional sale analysis.

Korean source inputs

Total acquisition cost

₩264,000,000

Acquisition tax rate 4.6%.

Net yield

0.4%

Gross yield 3.5%.

Equity ROE

0.8%

Leverage effect -1.7%.

Monthly net income

₩97,292

Annual vacancy loss ₩420,000.

Break-even rate

5.4%

Loan rate where annual net before loan becomes zero.

Sale profit

N/A

Sale analysis disabled.

This English calculator calls the same pure Korean calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

Related calculators

Officetel yield calculator

This guide follows the Korean officetel yield calculator for business-use and residential-use officetels.

Use type changes tax

Business-use officetel acquisition tax is modeled at 4.6 percent including acquisition tax, local education tax, and special rural tax. Residential-use officetel follows the housing acquisition-tax branch and can be affected by house count and regulated-area status.

For presale business-use officetels, building VAT can be included and refunded when the buyer is VAT-registered and the source conditions are met. The English calculator exposes both includeVAT and vatRefundable instead of hiding this cash-flow difference.

Yield calculation

Gross yield uses annual rent plus deposit opportunity yield against purchase price. Net yield deducts vacancy loss, management fee, repair cost, property tax, and loan interest.

The source returns net yield, equity ROE, monthly net income, annual effective income, payback period, leverage effect, and break-even loan rate. A headline monthly rent can look strong while equity ROE is weak if acquisition cost and loan rate are high.

Sale and vacancy risk

Vacancy sensitivity tests 0, 3, 5, 8, 10, 15, 20, and 30 percent vacancy. This matters for officetels because small rent changes can erase the margin after property tax and loan interest.

Optional sale analysis estimates sale price, capital gain, capital gains tax, local income tax, sale brokerage fee, cumulative rental income, total profit, total yield, annualized yield, and long-term deduction rate.