Real estate returns come from rental income, appreciation, and leverage. Understand all three.
Property investing is different from most businesses because leverage amplifies returns (and losses). You'll learn rental yield (annual rent as % of property value), gross yield vs net yield (net accounts for voids, maintenance, tax), LTV (loan-to-value — how much are you borrowing?), and cash-on-cash return (annual cash flow as % of your actual cash invested). You'll understand void rate (how long between tenants?), and how stress-testing shows what happens if interest rates rise or the market falls.
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Follow this learning path to master property & real estate: yield and risk.
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