Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
The Term “Real Estate” is Used Three Ways – Tangible Assets |
Real estate as a tangible asset takes one of three forms:1) “Raw” land 2) Structures (improvements on the land) 3) Improvements to the land• Excavation and fill• Sewers and other utilities• Roads and driveways• “Upzoning” |
|
|
Thedifference between improvements on and improvements to land |
Land has an indefinite life and is not usually used up over time. Land Improvements such as parking lot surfaces, driveways, fences, shrubs, andlighting systems have limited useful lives and are used up |
|
|
Bundle of Legal Rights of a Real Estate Owner |
the right of control - within the laws, the owner controls the use of the property; the right of exclusion - others can be excluded from using or entering the property; the right of enjoyment - the owner can enjoy the use of the property in any legal manner; and the right of disposition - the title holder can sell, rent or transfer ownership or use of the property at will. |
|
|
Biggest source of income for for local municipalities |
Property Tax accounts for in NJ almost 70% of income for towns. |
|
|
Implications for Real Estate Markets |
Importance of “Location, Location, and Location” Real estate markets are local• Real estate markets are segmented
Two type of market segmentation: Segmented by property type Segmented by location• Infrequent transactions and limited market information• |
|
|
Characteristics of Real Estate vs. an “Ideal” Economic Good |
Ideal Economic Good: Fully mobile Homogeneous No spillover effects Many buyers and sellers Real estate: Immobile Heterogeneous Every location is unique. Few buyers and sellers |
