introduction to business and marketing chapter 32.1
TRANSCRIPT
REAL ESTATEIntroduction to Business and Marketing
Chapter 32.1
OBJECTIVES
Identify the three types of residential
property
Discuss aspects of home buying
Determine the difference between
rental property and underdeveloped
property
THE MAIN IDEA
Real estate is an investment
option.
Residential property, such as
single-family homes, is
usually considered a good
investment
Property can also generate
income
INVESTING IN REAL ESTATE
Unlike stocks and bonds, real
estate is something you can
use
A home is considered a good
investment because home
prices rise over the years
Homes fluctuate in value, just
like other investmentsReal Estateland and anything attached to it, such as buildings or natural resources
TYPES OF HOMES
The type of residential property that
people pick depends on their income and
needs
o Single Family Homes
o Multi-Unit Housing
o Manufactured Homes
SINGLE FAMILY HOMES
The most popular type
of property
Usually on its own lot
Separate from other
buildings
Range from two-
bedroom homes to
mansions
MULTI-UNIT HOUSING
Single buildings divided
into various units
Includes:
• Duplexes
• Townhouses
• Condominiums
MANUFACTURED HOMES
Prefabricated houses are
partly assembled at a
factory, and put together at
a building site
Mobile homes are fully
assembled at factories
Cost is lower than other
types of homes
BUYING A HOME
Most people have to
finance the purchase of a
home with a home
mortgage loan
Buying a house requires a
down payment, which is
usually 20 percent
HOUSING COSTS
BUYING A HOME
Home buyers often
obtain a real estate
agent to help them find
a home
Agent makes a
percentage of the sale of
the home
HOME VALUES
Factors affecting home
values include:
oSize
oCondition
oQuality
oLocation
HOME VALUES
The amount of equity
you have in a home is
very important.
Home Equity the value of a piece of property less the amount still owed on the money borrowed to purchase it
INCOME PROPERTY
With income property, the owner can
product income in two ways:
oCollect Rent
oSell for Profit
RENTAL PROPERTY
Apartment buildings
and commercial
properties are two
common types of rental
property
Rental Propertyany type of dwelling unit or other property rented for a length of time
UNDERDEVELOPED PROPERTY
Underdeveloped
property usually does
not have utility
services and cannot
be farmed
Underdeveloped Propertyunused land intended only for investment purposes