What is the term for the ratio of the price of investment property to its annual income before considering expenses?

The correct answer is referred to as the gross income multiplier. This term is used in real estate valuation to assess the value of a property based on its income-generating potential. The gross income multiplier is calculated by taking the price of the investment property and dividing it by the property's gross annual income, essentially providing a quick metric that investors can use to evaluate the potential profitability of real estate investments.

The use of this metric allows for a straightforward comparison between different investment properties without the need to delve into specific expenses, making it a practical tool for initial assessments. By focusing solely on gross income, investors can quickly gauge how many years it might take for the property to pay for itself based solely on income before factoring in any expenses.

Alternative terms, such as the capitalization rate, refer to a different calculation that takes into account the net income (income after expenses), which is not what the question seeks. Similarly, net income ratio and return on investment involve more complex calculations that include various financial considerations beyond the simple property price and gross income. Thus, for evaluating property solely based on its income before expenses, the gross income multiplier is the most appropriate and widely used term.