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.