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29 Cards in this Set
- Front
- Back
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When viewed as a tangible asset, real estate can be defined as the land and its permanent improvement. Improvements on the land include: a. fences b. walkways c. sewer systems d. streets |
a. fences walkways, sewer systems, and streets are improvements to the land |
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Real Estate is property, which can be either a tangible or an intangible asset. Which of the following is considered an intangible asset? a. land b. building c. mortgage d. motor home |
c. mortgage land, building, and motor homes are considered tangible assets |
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tangible asset |
physical things |
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what is considered a tangible asset |
cars, clothing, land, or buildings
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intangible asset |
nonphysical things including contractual rights, financial claims, interests, patents, or trademarks |
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when the value of land is considered, it is important to distinguish between land and raw land. Raw Land refers to a a. building site b. structure on the land c. property's infrastructure d. area that does not include any improvements |
d. area that does not include any improvements
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the size of a single family residential lot is typically |
less than one acre |
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as of 2008, the single largest asset category in the net worth portfolios of households is: |
housing |
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as of December 2008, the market value of outstanding real estate mortgage debt was |
greater than the market value of corporate, foreign, and US Treasury debt securities combined |
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real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds? a. user market b. capital market c. government d. local market |
b. capital market
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the demand for real estate service from the need that participants in the user market have for shelter and convenient access to other locations. the primary participants in the user market include all of the following EXCEPT a. owner occupants b. tenants c. renters d. pension fund managers |
d. pension fund managers |
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in 2007, the housing market was widely viewed as |
the primary cause of a major economic downturn |
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capital markets can be divided into four main categories... |
private equity, public equity, private debt, and public debt |
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equity is |
owners |
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debt is |
lenders |
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capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is: a. real property b. home mortgages c. equity REIT's d. mortgage backed securities |
a. real property
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primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values |
local government |
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competition in the __________, where households and firms compete for the currently available supply of locations and space, determines the level of rental income for each submarket and property |
user market |
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discounting |
the expected stream of rental income is capitalized into value by converting expected cash flows into present value through a process called |
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what is an investment-grade property |
large commercial properties valued well over $10 million are often referred to as |
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each property has unique features, whether it is its age, the building design of its structure, or its location. As such, real estate markets, in contrast to other goods, are considered |
heterogenous |
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the national government can have a significant impact on the value of real estate through a. property tax policy b. income tax policy c. building codes d. real estate licensing requirements |
b. income tax policy property tax policy is local government building codes and real estate licensing requirements are state government |
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The market in which required rates of return on available investment opportunities are determined is referred to as the |
capital market |
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the market for buying, selling, and leasing real estate can be characterized by all of the following except: a. localized market b. highly segmented markets c. privately negotiated contracts d. low transaction costs |
d. low transaction costs |
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a market where tenants negotiate rent and other terms with property owners or their managers is referred to as a |
user market |
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the market in which required rates of returns on available investment opportunities are determined is referred to as the |
capital market |
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approximately, what portion of US households own their own home |
two-thirds |
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storm water drainage systems are best described as |
improvements to the land |
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what is the attribute of a home that is the most difficult to observe and value |
location attributes |
