Real Estate Investing
Balloon Payment
Definition
What is Balloon Payment?
A large final payment due after smaller periodic loan payments.
Example in practice
How This Looks in Practice
The propertyLand and buildings held for use, rent, development, or capital appreciation. loan requires a ₦20 million balloon payment in year five.
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Related Terms
Real Estate Investing
Real Estate
Land and buildings held for use, rental income, development, or appreciation.
Real Estate InvestingResidential Property
Property designed mainly for people to live in.
Real Estate InvestingCommercial Property
Property used for business purposes, such as offices, shops, or warehouses.
REIT MetricsFunds from Operations
A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.