ABSTRACT
In this chapter … • Types of investment and investors. • Nominal and real returns on an investment, how they are calculated and the importance
of distinguishing between them. • What is the ‘ideal’ investment and does it exist? • How risk and reward determine yields. • What is the reverse yield gap and when has it occurred? • The benefits and drawbacks of real estate as a form of investment. • Deciding which investment best suits an investor and how the performance of investments
is measured. • Methods of purchase or sale of land and buildings and their advantages and disadvantages.
