Property Investment Basics: Operating Statement

"Accurately recording all cash flows of a property and assessing its income earning capacity is key to evaluating it from an investment point of view. This can be done by constructing the property's operating statement, which typically includes not only the cash inflows and ..."

Property Investment Basics: Return on Equity

"The best way to estimate Return on Equity for a real estate investment held for multiple years is the calculation of the leveraged Internal Rate of Return (IRR) using the Discounted Cash Flow (DCF) model, which takes into account the exact timing of all revenues and expenses over the holding period, including ..."

How to Estimate Future Property Value

"The typical income return for residential, retail and office property in the US ranges from 5% to around 8% depending on the property type under consideration. Within this context, achieving double-digit returns through real estate investments requires ..."

Property investment strategies

Property investment strategies vary depending on the risk and return objectives of the investor.  In terms of returns, we can distinguish two main strands; strategies that give more emphasis on .....

Property Investment Basics: Capital Return

The total return of a property investment is measured as the sum of the income return and the capital return. The capital return measures the percent change in property value.  The one-period capital return can be calculated using the following ...

Why Invest in Property?

Property investments offer several benefits, but also entail several risks of different magnitude depending, on the particular property that is acquired and its location. That is why smart property investors need to first understand and assess as accurately as possible the ...

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