A property should be sold when the marginal rate of return falls below the rate at which funds can be reinvested.

Question

Quizplus · Accepted Answer

When the marginal rate of return on a property falls below the rate at which funds can be reinvested, it means that the property is no longer generating a high enough return compared to other investment opportunities. In this case, it would make financial sense to sell the property and invest the funds elsewhere to achieve a higher rate of return.

A Property Should Be Sold When the Marginal Rate of Return