Final answer:
The Gross Income Multiplier (GIM) for a property with an annual income of $33,600 and a value of $312,480 is calculated as the property value divided by the annual gross income, resulting in a GIM of 9.3.
Step-by-step explanation:
The Gross Income Multiplier (GIM) is a real estate valuation metric that is used to compare the relative value of different properties. It calculates the ratio of the property's sale price (or value) to its annual gross rental income. To find the GIM, the formula used is:
GIM = Property Value / Annual Gross Income
For a commercial property with an annual income of $33,600 and a value of $312,480, the computation would be as follows:
GIM = $312,480 / $33,600
After performing the division, the GIM for the property is:
GIM = 9.3
This indicates that the value of the property is 9.3 times the gross annual income.