Q. Capital Appreciation vs Rental Income

A.  An investor buys a property (Residential or Commercial) which will be rented out until it appreciates sufficiently to sell at a profit. First there is a stream of rental income, which serves the same purpose as the dividend yield in an equity investment, and then there is capital appreciation, or profit on the sale of the building.

Strategy –

With the current interest rates as low as 11%, and expectations of another drop before the year is up, it is the ideal time to invest in a property that provides a yield far greater than that of present interest rates.