Real Estate Investing
Loan-to-Value Ratio
Definition
What is Loan-to-Value Ratio?
A loan balance divided by the value of the propertyLand and buildings held for use, rent, development, or capital appreciation. securing it.
Example in practice
How This Looks in Practice
A ₦30 million mortgageA loan secured by real property. on a ₦50 million property has 60% LTV.
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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.