FINA 210 Lecture Notes - Lecture 1: Real Estate Broker, Real Estate Appraisal, Capital Asset Pricing Model
Document Summary
After completing this lesson you will be able to: define real estate investment (rei, name the major participants in rei, explain the interrelations between rei participants. The return on real estate is usually higher than stocks and bonds and it comes with lower risk. Major profit from real estate = capital gain. The longer you keep the real estate investment, the higher will be your capital gain. The purpose of real estate investment (rei) is to buy land and all physical properties attached to it, such as houses, trees, fences, and so on, in order to generate income by selling or renting it. For example, some people might buy a house to sell it in 10 years when property value has increased; others might buy an apartment building and rent the apartments to create profit. As other investments, rei comes with risk and return that depend on the market"s cycle.