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

Q: What are land improvements?

A:

Q: What costs should be capitalized for a self constructed asset?

A:

Q: Give an Examples of Leasehold Estates?

A: The question is based on the concept of lease, which is consider as special type of time bond…

Q: Discusses various alternative real estate financing and investment vehicles?

A: Note this is exclusive question we can’t count or limit number of strategy. I will try to explain…

Q: Example or what are the transactions that will increase "land"?

A: The balance sheet represents the financial position of the business with its assets and liabilities.…

Q: Give an Examples of Freehold Estates?

A: Free hold estate Firstly we understand what is free hold estate? Freehold property means an estate…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

Q: Explain Growing Income from Existing Properties?

A: The income from existing properties grows due to the following reasons: 1. Demand and supply of the…

Q: What is meant by depreciable base? How is it determined?

A: Depreciable base: The word depreciable base is used to depict the value that is divided by the…

Q: why is land being depreciated

A: Given in the question: Land was purchased on September 1, 2016 for $150,000 for cash by Hand Creamy…

Q: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: How can the marginal rate of return be used to decide when to sell a property?

A: Answer: The following are the factors that cause a change in marginal rate of return over time, An…

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: When valuing specific properties investors must consider?

A: Valuation of the real estate properties includes the estimation of the rental payments that are…

Q: What are the advantages/disadvantages of real estate as alternative investments?

A: Following are the advantages and disadvantages of real estate as alternative investments:…

Q: What is sensitivity analysis? How might it be used in real estate development?

A: Answer: A real estate development is the ongoing reconfiguration of the “built environment” to suit…

Q: Explain Due Diligence in Real Estate Investment Risk Analysis?

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

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: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: What factors would result in property increasing in value over a holding period?

A: One holding period is the length of time a creditor retains or the time between purchasing and…

Q: Definition of Estate?

A: Estate: Definition of estate is similar to definition of Assets. Assets owned by an individual in…

Q: What are those long-lived assets?

A: Long lived assets are those assets that a business retains for long periods of time for use in the…

Q: What does Lender Requirements in Financing Land Development?

A: The question is based on the concept of lend development loan provided by financial institution.…

Q: What will be the Simultaneous Effects of Real Market Forces and Interest Rates on Property Values?a

A: There are various factors which affect the long term trends and short term trends in values of…

Q: How do land improvements differ from land?

A: Land improvement:   Improvements are made on a plot of land in order to make it more usable. These…

Q: What are some of the difficulties in obtaining data to measure real estate investment performance?

A: Introduction: Real estate investment data is the pricing data for all investment property purchases,…

Q: Explain the Effect of Below-Market Financing on Property Prices?

A: When interest rate for financing the property is less than the normal interest rate in economy, it…

Q: Why It’s important to distinguish between the cost of land and the cost of land improvement?

A: The cost of land and cost of land improvements are to distinguished and are to be recorded…

Q: Explain the Nature of Real Estate Investment Data?

A: Introduction: Real estate investment data is the price data for all purchases of investment…

Q: What kind of activities typically have the greatest impact on property values? a.​Federal b.​Local…

A: Factors to consider when pricing a home are: historic sales price, quality of the neighborhood, the…

Q: Why does the so-called distressed property situation exist?

A: Distressed property refers to those which have value less than the market value. This situation…

Q: Explain Land Acquisition and Development Costs?

A: Land acquisition: It is the process by which the government acquires private property for a public…

Q: What are the factor payments for land, labor, and capital?

A: The question is based on the concept of factor payment ,in financial economics factors are consider…

Q: Explain Diversification by Property Type and Location?

A: The question is based on the concept of diversification in field of real estate investment.…

Q: Which sources of data are used to produce investment returns on real estate in this chapter is based…

A: Introduction: Real estate investment trust (REIT) is a company that owns or primarily operates real…

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: What is the cost of right of use of asset?

A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…

Q: Explain Real Estate Performance and Inflation?

A: Inflation is an overall increase in the price level.  Inflation has an extensive effect on the…

Q: What will be the Motivations for Investing in Income Properties?

A: Income properties are the real estate properties that provide income in the form of rents, leases,…

Q: Which are Non residential properties?

A: Fixed assets are the long-term fixed assets purchased by the firm to increase the productivity of…

Q: What the characteristics of Real Estate Market and Investment Strategies?

A: Introduction: Real estate generally refers to land along with various types of improvements which…

Q: In view of the investor, what is the best type of depreciation method? Justify your answer in terms…

A: solution declining balance method of depreciation                 Declining balance of method is a…

Q: Why is it favorable to invest in different investable assets?

A: Diversification is very important in investment to achieve the consistency.

Q: What is different between land and land improvements?

A: The land is a fixed asset that does not depreciate just like other fixed assets.  Any improvement…