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

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

A:

Q: When should a property be sold?

A: Sale of property: The act of transferring the title to the buyer by the seller after receiving the…

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: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

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: 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: What factors affect a property’s projected NOI?

A: NOI is the abbreviation used for Net operating income. It is used to analyze the profit which will…

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: would the return on as

A: Return on Assets is net income divided by the average total assets

Q: What are the key differences between real estate property types? How do these differences affect the…

A: Real estate property types refer to the various types of land and buildings that are available for…

Q: what are direct and indirect investments in real estate?

A: Investment refers to payment which is made in order to acquire or purchase or hold the real estate…

Q: What is the initial value of land?

A: Assets: Assets are resources owned by business. It is of two types tangible assets and intangible…

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: 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 does Capital Recovery (Ownership) Cost?

A: Capital recovery cost It is an equivalent annual amount each year an asset must earn to recover…

Q: What are the important properties of real estate as an asset class? How are they similar/different…

A: The real estate investment class is a type of investment class which is focusing upon investing in…

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: 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: What are the advantages and disadvantages of real assets?

A: The question is asking about the pros and cons of investing in real assets. Real assets are physical…

Q: If you are trying to value an income-producing property, what is most important and why?

A: Valuing an income-producing property is an important process that requires careful consideration of…

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: 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: 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: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

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: 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: What is meant by an estate?

A: Estate is  the properties that an individual person owns. Large area or land which is privately…

Q: WHAT IS ECONOMIC LIFE OF ASSET?

A: Asset refers to the useful resource of a business entity that is being owned by it that would help…

Q: How does investing in income property works? Is it worth it?

A: Investment refers to the process of allocating money or resources with the expectation of generating…