Real Estate Cheat Sheet

In reality property development is complex, often taking place over a considerable time frame. The end product is unique, either in terms of its physical quality and/or its location. The development process can be divided into multiple stages which are; Initiation, Evaluation, Acquisition, Design, Permission Commitment, Implementation and Let/manage/dispose.

This chapter helps to define some elements that may represent a city. For example, when

Know the three different kinds of agglomeration economies – what is the difference between them? which one is significant for innovation?

6. When considering a real estate investment opportunity, which of the following issues need to be addressed?

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

Throughout history, the evolution of communities and societies has been influenced by the local and global economy. Large cities emerged from vibrant business activity and flow of products and services. For the most part

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010).

Threshold affects the central place theory because, the larger cities have all of the goods and services available in smaller towns, plus additional services which have higher thresholds and only appear in large cities when they reach a certain population. 1c) The hierarchy of market centers that settlements

Well, before we dig into SimCity 2013, maybe it would be beneficial to see how another game tackles the same material. Cities: Skylines uses the traditional SimCity residential/commercial/industrial model where jobs, workers, and produced goods all push and pull on one another. But where SimCity was fascinated primarily with how those raw forces drive city growth, Skylines takes that model and uses it as a basis for examining cities as defined by both their physicality and their public policies. More than SimCity (and certainly more than SimCity 2013), cities exist in a physical space. The flow of water determines where you want to dump your sewage or pull your water from, you need to make decisions about what directions to expand your city limits; power and water are only assumed to extend so far requiring investment in extending utilities for long distance expansions, bodies of water and mountains force players to build around them. Cities aren’t just a big jumble of roads and buildings that create aggregate demand, they’re an organism that grows to fit its environment and resources.

There are three primary routes to establishing a real estate property values and these methods differ significantly. The most common for residential real estate is the determination of market value or the sales comparison approach. This method utilizes sales data to determine what other similar properties in the local market have sold for. Another method of determining value is through a cost approach which is more typical in new construction. For example, when a contractor builds a new house or structure they might charge for the materials and labor that was used plus some amount of

as well as the mechanics of commercial real estate leasing. The asset types we will consider

There has been a significant increase in the use of AVMs in valuing properties for taxation purposes (RCIS 2013, Adair and McGeal 1988). This is primarily due to the somewhat cumbersome nature of the traditional single parcel appraisal method adopted by valuers, which is also very cost intensive (O’Neil, 2004).

Land is the property that can be used for the construction of building or flats, apartments, office, malls, etc. These have higher value than manufactured homes or buildings as these can be manufactured at the wish of the owner of the land. The methods used for valuation of land are cost of development approach and comparison method.

What factors do you expect from a city? Easy public transport? easy to access food? Decent entertainment and community centres? A large city would be an easy place to find all these.

Cities are places which have huge amount of gathering of people, collection of economic activities and complex infrastructure for people which all together are supported by transport systems.