Under what conditions might a property with an assumable loan sell for more than comparable properties with no assumable loans available?

Q: Why is a home a good inflation hedge

A: Inflation is a stage or condition in which the price is rising and the value of money is decreasing.…

Q: Why don’t permanent lenders usually provide construction loans to developers? Do construction…

A: Permanent loans: Permanent loans are loans offered by the financial institution for a longer…

Q: Explain the Basic Property Concepts Important in Real Estate Finance and Investment?

A: Financial prediction based on the analysis made by the real estate market which is helpful in the…

Q: Why is the cost of financing with a sale-leaseback essentially the same as the return from…

A: Introduction: Financing costs are nothing but the interest and other costs that the company incurred…

Q: Determine the indifference price for a property that had an assumable below-market-rate loan?

A: Indifference price is the price at which the investor is indifferent to investing in any of the two…

Q: What dangers are encountered by mortgagees and unreleased mortgagors when the property is sold…

A: Borrowers mortgage their properties or assets to provide guarantee for repayment of loan to the…

Q: What does General requirements for loan closing of land development?

A: The last step in financing or buying any land is known as the closing of a loan. The term settlement…

Q: Why should investors be concerned about market rents if they are purchasing a property subject to…

A: Lease is an agreement by which one party agrees to use the property such as land or building of…

Q: onstitutes a large and long-term commitment to an individual. Describe the outcome of taking a…

A: A second home is often used to describe an investment property. However, the two do not always have…

Q: You are considering giving a loan to a prospective commercial property investor. You are concerned…

A: Debt service coverage ratio is the ratio that tells the available cash with the firm to repay its…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: What are the key principles underlying both conventional and Islamic home financing techniques? Who…

A: Conventional home finance - Bank lending i.e. a bank provides a pure interest based loan. in…

Q: What are the primary benefits of investing in real estate income property?

A: Advantages of real estate income property investment are: Tax benefits It helps the investors in…

Q: Which of the following types of interest is not deductible? a.Qualified mortgage interest on…

A: Deductible interest is the amount of interest on qualified mortgage or loans which are deductible in…

Q: What are some of the potential problems with using a “going-in”  capitalization rate that is…

A: Going-in-capitalization rate: Going-in-cap rate is the cap rate originated on the ratio of the…

Q: Discuss whether a Mortgage Reducing Term Takaful can be taken for coverage of a conventional housing…

A: MRTT or Mortgage Reducing Term Takaful is referred as the takaful plan, which offers the home…

Q: How can be Mortgage Transfer to a New Owner?

A: Assumable mortgage refers when a mortgaged property is sold along with the loan. Buyer in this case,…

Q: When selling a property with owner financing, why should you only finance the portion of the…

A: When owner of the property want to sell property quickly, as soon as possible they offer owner…

Q: What are the potential tax consequences of selling an old asset in an asset replacement investment…

A: Calculation of potential tax consequences of selling an old asset::: In the given case if the sale…

Q: Which of the following is not a personal-use asset? ☐  A holiday home on one hectare of land ☐  A…

A: A personal use asset is an asset which is used only for personal use.

Q: True or False If a property’s market value becomes 0, the owner has no right to sell it at a value…

A: As per the Accounting terms , if a property's market value becomes 0 , then…

Q: Which of the following characteristics is most likely to diff erentiate investment propertyfrom…

A: Investment is a process of sacrificing the present income for the future return.

Q: What would cause the rate of return for an investor that purchases real estate and leases it to the…

A: Corporate Tax is a fee for a company (cash outflow) paid by the government that is the principal…

Q: Question: (a) What is a Capital Recovery Amount Factor (b) Write a detailed note on Minimum…

A: Capital recovery in the simplest terms refers to the net amount of initial investment that could be…

Q: You are considering giving a loan to a prospective commercial property investor. You are concerned…

A: Debt Consolidation (DSCR) is a measure of a company's cash flow to pay off current liabilities. DSCR…

Q: What special advantages does a mortgagee have in bidding at the foreclosure sale where the mortgagee…

A: The debt instrument which is issued against some collateral or security is called a mortgage. It is…

Q: Which alternative should the borrower choose, assuming he will own the property for the full loan…

A: Mortgage: It is the loan taken for the purchase of a house or any specific land or other sorts of…

Q: What is the Importance of the Residual Value of Real Estate?

A: RESIDUAL TECHNIQUE IN REAL ESTATE- Residual techniques in business land valuation square measure…

Q: Should liability for rent deposit be amortized? Why or why not?

A: The assets are amortized as they provide benefits for the long period.

Q: How can we determine the amount of property taxes over the machine's depreciable life?

A: Depreciation indicates the fall in the historical cost of fixed assets due to normal business…

Q: When a note payable is exchanged for property, the stated interest rate is presumed to be fair when…

A: When a note payable is exchanged for property, the stated interest rate is presumed to be fair when…

Q: When using the Comparison Method of Valuation to estimate the current market rent of a house, which…

A: Property valuation is the governmental process being conducted when the property need to be sold,…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Monetary principle says that a business should only record transaction if it is measured in monetary…