property or real estate to be a liquid investment vehicles really since the individual properties or real estate are not interchangeable. Thus in determining the land or property in which to invest you can take on a very high amount of time and effort and a lot depends on how investors may become familiar with a certain segment of the market corresponding to their interests. Real estate or land to investors and often using a variety of valuation techniques to make their lives a little easier, by comparing prices. Information could include sources for the price: auctions and private sales, public bodies, and lists the market or real estate agents
real estate assets or land are much more expensive than bonds or stocks. Thus investors often take advantage of a mortgage loan that can be guaranteed by the ground or the same drug. Accordingly, we usually use the terms * stock * or * * pressure with reference to the money paid by the investor rather than a lender the amount by the bank. The proportion of so-called loan-to-value (LTV) which is considered to represent a risk by the investor take. Most banks are considered 20% of the appraised value of shares as a minimum. A good number of pension funds and real estate investment trusts, or REITs, and regularly buy land or real estate with zero * * influence and thus reduce their risks, but capping the return on investment (ROI) as well.
If you were leveraged to buy land or real estate, and monthly premiums necessary or "carrying costs" has created a negative cash flow for the investor immediately after purchase. In addition to the possible elements of a positive cash flow, such as those resulting from consumption, and the accumulation of stock and raise capital, investors may also be partially or completely offset "implementation costs" through the so-called net operating income, or NOI. This technical term usually * means rents less expenses * In countries other than the United States, it is often referred to as net cash flow. And called on the proportion of the Nation of Islam * / * purchase price capitalization rate. It indicates indirectly in the number of years the property or real estate will pay for itself in the financial environment without interest.
E.g. If an investor had bought a piece of land or real estate of $ 800,000 which generates a positive net operating income of $ 40,000 a year, then the capitalization rate of the property is 5%. It shows that investor ownership of land or real estate will pay for itself in 20 years in terms of net cash flows.
0 Komentar