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REAL ESTATE Investments 12.8. Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available.

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Presentation on theme: "REAL ESTATE Investments 12.8. Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available."— Presentation transcript:

1 REAL ESTATE Investments 12.8

2 Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available at financial institutions Rent – a fee for the use of property however not all of it is profit and must include cost of: mortgage interest taxes repairs insurance depreciation … Cash Investment – Money used to buy the property/Down payment

3 Formulas Needed

4 Find the a) annual rental income, b) annual net income & c) annual yield to the hundredth %.

5

6 Now suppose Nick wanted an annual yield of 11%. What would he need to charge for rent per month?

7 Now all of our examples were about home rentals. Can you think of other types of real estate investments? Business lease Farmland Vacation home Hotels Time share Storage units


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