Scheduled gross income is a type of rental income projection. It forecasts potential earnings from real estate assets before considering expenses.
This concept centers on properties in Bangkok, catering to foreign investors and home buyers.
Scheduled gross income differs from net operating income fundamentally. Net operating income subtracts expenses from the scheduled gross income, providing a clearer profit margin picture.
For instance, condominiums along Sukhumvit road may generate significant scheduled gross income, but high management fees reduce the net operating income.
Scheduled gross income features anticipated rent as its backbone. Properties such as luxury villas in Ekkamai and high-rise apartments in Thong Lor exemplify assets with high anticipated rent.
Scheduled gross income also includes fixed increases in rent from long-term leases, seen in commercial spaces in Sathorn. Moreover, it accounts for fees from amenities and services, common in upscale condominium complexes in Ratchada.
Common features of scheduled gross income include its reliance on market demand and location desirability. Prime locations like Silom and Asoke attract higher rents, boosting scheduled gross income.
The calculation also presupposes full occupancy, a standard yet optimistic assumption. It operates on the current rental market rates, subject to fluctuations in Bangkok’s dynamic real estate market.
Unusual features of scheduled gross income involve speculative projections from undeveloped properties. Projects in early development stages in areas like Bang Na offer potential high returns on paper.
It may include income from billboard or cell tower leases on the property, not common in central Bangkok but possible in peripheral districts. Future developments, like planned mass transit extensions, can significantly affect these projections, albeit unpredictably.
Unique features of scheduled gross income encompass income adjustments based on currency exchange rates, crucial for foreign investors in Bangkok. It includes potential tax incentives offered for specific investments, such as in designated economic zones.
It may factor in income from short-term rentals through platforms like Airbnb, a growing trend in tourist-heavy areas like Phra Nakhon.
Scheduled gross income provides a broader revenue outlook than actual income, highlighting potential rather than realized earnings. While similar in structure to other income projections, its inclusion of speculative and non-traditional income sources sets it apart.
This distinct approach allows investors to gauge the maximum financial potential of real estate assets in Bangkok, setting a benchmark for comparison with actual performance over time.
For further details on terminology used in this context, interested parties can refer to our glossary about Bangkok real estate.