What is Real Estate Investment?

The purpose of Real Estate Investment is to obtain profit by leasing or selling the property such as a condominium that you purchase.
There are two basic ways to obtain profit from Real Estate Investment.

Capital Gain

Capital gain is profit gained from purchasing and selling real estate properties.

Selling Price – Purchase Price = Profit

e.g. 100 million – 90 million = 10 million 

Income Gain

Income gain is profit gained from renting out properties such as condominiums, apartments, or commercial buildings.

e.g. Purchased a property that yields 9%APR for 100 million.
100 million x 9% = 9 million profit every year

The relationship between the capital gain and the income gain determines the final profit from real estate invest.

What is Real Estate Investment?
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