Here are some key terms that will help you get more familiar with the world of real estate investing.


Appreciation/Depreciation:

  • Appreciation or depreciation refers to an increase or decrease in the asset's value over time. The appreciation ratio is calculated by dividing the asset's current value by the initial acquisition cost.


Asset Value:

  • An investment fund's assets less its liabilities. Liabilities would include items such as a loan.


Market Cap:

  • The total market value of each asset's outstanding shares expressed in dollars. It is calculated by multiplying the total number of the property's outstanding shares by the current market price of one share.


Net Return Percentage:

  • The total return of investment determined by the share's price appreciation plus the dividend income.


1Y Gain Percentage:

  • A property's change in value over a 1-year period expressed as a percentage.


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