PROFITABILITY OF A REAL ESTATE INVESTMENT

Mirtha Burgoa
Aug 24
1 min read

Updated: Aug 23

A property is considered to be all those assets considered real estate, having in common the circumstance of being intimately linked to the land, inseparably linked, physically or legally to the land, such as plots, whether urbanized or not, houses, industrial warehouses, That is, the so-called farms, in short, which are assets that are impossible to move or separate from the ground without causing damage, because they are part of the land or are anchored to it.

For legal registration purposes, in some legislations, ships and aircraft are considered similar to that of real estate.

CALCULATION OF RETURN OF AN INVESTMENT

Regarding investments, although historically investments in real estate have been the most profitable even than stocks, the truth is that it is a type of investment that requires more capital in most cases or intelligent debt in most cases. Others.

Risk is a basic principle in all investments that in many cases depends on factors that are not predictable or that are beyond the control of the investor.

The return is the profit obtained from the investment. Performance should not be confused with the profitability of an investment. Profitability refers to the monetary capital invested in relation to the return obtained and is expressed in percentages.