FIN 3351 Study Guide - Midterm Guide: Gross Domestic Product, Asset, Real Estate Investment Trust
Document Summary
Real estate is property (anything that can be owned, or possessed: two types of property, tangible. Can be real or personal: intangible. Non-physical assets such as stocks, bonds, mortgages, leases. The land and it"s permanent improvements (anything that wasn"t naturally there with the land). Virtually all decisions about real estate depend on some assessment of the real estate"s value. The term real estate used three ways: real estate as a tangible asset, structures (improvements on the land)-buildings, fences, walls and decks, improvements to the land. Roads and driveways (infrastructure: raw land. 9 out of 10 have trouble or are unsuccessful: you must know and understand your market and have capital (borrow, cash, investors, re firms are small businesses-70% have assets under 50 million. Land + improvements=real estate: real estate+ bundle of rights=real property, personal property-anything that is not real property (desk, furniture, your phone) Real estate in the economy: half of the worlds" wealth.
