1. REAL ESTATE Investments 12.8

2. Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available at financial institutions Rent – a fee for the use of property however not all of it is profit and must include cost of: mortgage interest taxes repairs insurance depreciation … Cash Investment – Money used to buy the property/Down payment

3. Formulas Needed

4. Find the a) annual rental income, b) annual net income & c) annual yield to the hundredth %.

6. Now suppose Nick wanted an annual yield of 11%. What would he need to charge for rent per month?

7. Now all of our examples were about home rentals. Can you think of other types of real estate investments? Business lease Farmland Vacation home Hotels Time share Storage units