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 is profit gained from purchasing and selling real estate properties.
e.g. 100 million – 90 million = 10 million
Income gain is profit gained from renting out properties such as condominiums, apartments, or commercial buildings.
The relationship between the capital gain and the income gain determines the final profit from real estate invest.