Comparing Real Estate Investments Suppose Kenji wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, he estimates that the first property (property A) has an NOI of $48,000 and that the other (property B) has an NOI of $36,000. If the cap rate is 10%, property A has an estimated value ofs In deciding between these two properties, It is important for Kenji to consider other factors. For Instance, in general, only seasoned investors should and property B has an estimated value ofs invest in property. (Note: Round your answers to two decimal places.) Alternatively, Kenji might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to mutual fund. Which of the following statements regarding REITS are true? Check all that apply. O They pay dividends. They allow individuals to buy shares in a real estate-based stock portfolio. O All REITS own income-producing real estate such as office buildings and hotels. O They can increase the diversification of individuals who are already invested in the stock market.
Comparing Real Estate Investments Suppose Kenji wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, he estimates that the first property (property A) has an NOI of $48,000 and that the other (property B) has an NOI of $36,000. If the cap rate is 10%, property A has an estimated value ofs In deciding between these two properties, It is important for Kenji to consider other factors. For Instance, in general, only seasoned investors should and property B has an estimated value ofs invest in property. (Note: Round your answers to two decimal places.) Alternatively, Kenji might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to mutual fund. Which of the following statements regarding REITS are true? Check all that apply. O They pay dividends. They allow individuals to buy shares in a real estate-based stock portfolio. O All REITS own income-producing real estate such as office buildings and hotels. O They can increase the diversification of individuals who are already invested in the stock market.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:9. Choosing a real estate investment
Comparing Real Estate Investments
Suppose Kenji wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating
expenses of each, he estimates that the first property (property A) has an NOI of $48,000 and that the other (property B) has an NOI of $36,000.
If the cap rate is 10%, property A has an estimated value of s
and property B has an estimated value of s
In deciding between these two properties, it is important for Kenji to consider other factors. For instance, in general, only seasoned investors should
invest in
property. (Note: Round your answers to two decimal places.)
Alternatively, Kenji might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to
mutual fund. Which of the following statements regarding REITS are true? Check all that apply.
They pay dividends.
O They allow individuals to buy shares in a real estate-based stock portfolio.
All REITS own income-producing real estate such as office buildings and hotels.
They can Increase the diversification of individuals who are already invested in the stock market.
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