I'm considering an investment property and the listing shows an 8% cap rate. I'm wondering if this is a good cap rate for a potential investment. Should I be satisfied with this rate or should I look for something higher?
            
            
            
            
            
            
           
          
          
            6 answers
            
            
  
    
    Valentino
    Fri Dec 06 2024
   
  
    They suggest that a cap rate falling within the range of five to ten percent is generally considered desirable.
  
  
 
            
            
  
    
    NavigatorEcho
    Fri Dec 06 2024
   
  
    Market analysts often discuss the concept of an ideal cap rate in the real estate industry.
  
  
 
            
            
  
    
    HanjiArtistry
    Thu Dec 05 2024
   
  
    When a cap rate is lower than five percent, it typically indicates a lower level of risk associated with the investment.
  
  
 
            
            
  
    
    Luigia
    Thu Dec 05 2024
   
  
    The specific figure within this range can vary depending on various factors.
  
  
 
            
            
  
    
    Valentina
    Thu Dec 05 2024
   
  
    One of the primary considerations is the type of property being evaluated.