I'm considering investing in real estate and have heard about the concept of
market cap rate. I want to understand what constitutes a good market cap rate to make informed decisions about my investments.
6 answers
Martino
Fri Nov 08 2024
Conversely, a cap rate below 5% may be viewed as a relatively safer investment option.
Riccardo
Fri Nov 08 2024
Cap rates for investments typically fall within a range of 4% to 10%.
EchoSeeker
Fri Nov 08 2024
In general, the level of risk associated with an investment increases as the cap rate rises.
SkylitEnchantment
Fri Nov 08 2024
A cap rate exceeding 7% often signals a higher degree of risk to investors.
Michele
Thu Nov 07 2024
Investors should consider the potential payback period when evaluating cap rates.