Definition of "Investment analysis"

Analysis of the risks and rewards to an individual in making a particular property investment. Investment analysis considers the cost of the original investment, the investment return over a period of time, the suitability of the investment and the probability off success. Investment analysis requires many financial methods including:

  1. Capitalization rate.
  2. Break-even formulas>
  3. Cash flow ratios.
  4. Cost of capital.
  5. Cost of credit.
  6. Future (compound) value.
  7. Payback period.
  8. Present value.
  9. Repairs and maintenance ratios.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Conversion of real property into money. The breaking up and selling of a real estate company for cash distribution to its creditors and then owners. Chapter 7 of the Federal Bankruptcy ...

Loose combination of small rocks and pebbles used for a gutter, driveway, landscaping, or roadbed. ...

Decline in the credit status of a prospective homebuyer. ...

An increase in land occurring from the withdrawal of a body of water. Normally, when reliction occurs, the increase in land area belongs to the individual having water rights in the area. ...

What’s the definition of real estate collateral? Could we say it’s like keeping a hostage? No, that would be relatively insensitive. But the idea is similar. In real estate, ...

Structure have two dwelling units under the same roof. Two-story apartment unit. ...

Region or locality that assesses real estate taxes on the properties located within its borders. Frequently, the local county or city is the property taxing jurisdiction which is empowered, ...

Primary horizontal support for a structure such as a house. It may be a large piece of wood, stone, iron, or other material that lies across the walls, and serves as support of the ...

Wondering what is a quitclaim deed? Well, the best quitclaim deed definition is something like a legal document used when someone is transferring a real estate property to another person. ...

Popular Real Estate Questions