Where the lack of
profitability of an investment in property relates to mismanagement of the property, investors may have grounds to seek oppression remedies under the Condominium Act, if applicable, or the relevant business corporation statutes, which can include statutory urgent injunctive relief or a court - appointed manager to oversee the management of the property.
IRR, or internal rate of return, is a standard metric used to determine
the profitability of an investment.
Comparisons of investments» payback periods, then, will not necessarily yield an accurate portrayal of
the profitability of those investments.
As such, it also fails to account for
the profitability of an investment after that investment has reached the end of its payback period.
An Internal Rate of Return (IRR) is a measure of
the profitability of an investment.
Those two issues can dramatically reduce
the profitability of an investment.
Return on Investment (ROI) is a simple, but limited, way to measure
the profitability of an investment.
If demand for housing in any major city falls, the leverage could doom
the profitability of the investments.
The ALTA survey also details restrictions that impact the future potential and
profitability of an investment.
Down payments typically increase
the profitability of an investment because, since the down payment amount is not being financed, the investor avoids the interest charges that would have been incurred on those funds.
PMI is skilled at ensuring that you are maximizing
the profitability of your investment while taking care of every detail of managing your property, tenants and every aspect of running a successful income property.