REE-3043 Chapter Notes - Chapter 1: Income Tax
31 Jan 2017
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Chapter 1: the nature of real estate markets. Real estate can also be called: tangible asset, bundle of rights. Real estate in the economy: half the worlds wealth, generates. Nearly 70% of local government revenue (property tax) jobs for 9 million people. Characteristics of re markets: re values are determined by interactions in 4 markets/sectors. Market for physical real estate: demand & supply. S: re owners who rent out: segmentation. Markets are specific to location and building type, so the rental prices vary. Provide financial resources for development and acquisition of re assets. Receive roi thought rent and appreciation: debt investors. Hold claims to interest on borrowed funds. Market for ownership claims to re assets: buyers/owners receive rights to cash flows generated by leasing space to tenants. Local: zoning, land use regulation, building codes, provision of roads, schools, utilities, mass transit, property taxes. Small homogeneous units of ownership in assets trade in public exchanges.
