Investment Property

Investment property is real estate acquired primarily for capital appreciation and rental income generation rather than personal occupation, evaluated based on financial returns, yield metrics, and market positioning.


Classification by StrategyApproach
Cash flow focusMaximize rental yield
Capital appreciationTarget high-growth areas
Value-addRenovate and reposition
Core-plusStable with upside potential
Performance MetricsInvestor Targets
Net rental yield6-8% for standard residential
Cash-on-cash return8-12% with leverage
5-year IRR12-18% target
Occupancy rate90%+ desired
Risk FactorsConsideration
Market cycle timingEntry price critical
Tenant riskVacancy and default exposure
Liquidity30-90 day sale timeline typical
LeverageAmplifies returns and losses

Related Terms

Rental YieldCash-on-Cash ReturnOff-Plan PropertyResale Property

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