20 Must-Know Terms In Real Estate Investment

Real Estate Investment List To Know

Rose Flores

2 months ago|2 min read

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Delving into real estate can be an excellent venture, even though there are many considerations to look at, such as property types, locations, and amenities. However, those who want to get involved must equip themselves with the basic real estate terms before investing.

Why is this important? Because real estate can be tricky, with so many things to decide upon. It is not just about the properties themselves or the amenities they have. Things such as down payments and taxes are also important to know about.

Having the basic knowledge of real estate can improve one’s decision-making. Not knowing much can lead to bad decisions and poor deals. This can affect the type of lot or location you will get or the gains you can earn from your investment. Understanding things like this can help anyone strike a great deal.

For instance, you need to understand the following terms to budget your investments properly.

1.     Amortization

2.     Earnest Money

3.     Mortgage

4.     Refinancing

As you go through the real estate investment process, you need to learn these things.

5.     Appraisal

6.     Buyer’s Market

7.     Capital Appreciation

8.     Depreciation

9.     Fair Market Value

10.  Pre-Qualification Letter

11.  Seller’s Market

You also need to know a few words to make sure you’re making money off your investments.

12.  Cap Rate

13.  Equity

14.  Net Operating Income

15.  Rental Income

Lastly, these are things that may need consideration from you when you select and look after your property.

16.  Buyer’s Agent

17.  Commercial Real Estate

18.  Heating, Ventilating, and Air Conditioning (HVAC)

19.  Raw Land

20.  Residential Real Estate

There are still many real estate terms out there that you may encounter. The important thing is that if you are unsure of what to do next, it is best to seek advice before making any hasty decisions. This can avoid any ill-advised choices that will be detrimental long-term.

Below is an infographic of 20 must-know real estate investment terms to widen your real estate investment dictionary and serve as your guide into this venture. It tackles words that may not be common to everyone and discuss them in the simplest way possible.

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Rose is a licensed real estate broker and the co-founder of RE/MAX Gold Philippines, a real estate company in the Philippines. Acting and real estate have always been her passions since childhood. She confidently helps close record-breaking deals for residential and commercial buyers while leading her team to success. Check out their website at remaxgold.ph.

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