RE 306 Exam1 Study Guide

RE 306 Exam1 Study Guide - Real Estate-EXAM 1 STUDY GUIDE...

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Real Estate-EXAM 1 STUDY GUIDE Chapter 1: The Nature of Real Estate and Real Estate Markets Real Estate has been estimated to represent approx. one-half of the world’s total economic wealth Property=anything owned Tangible assets : physical things vs. Intangible assets : nonphysical things such as contracts, interests, patents, trademarks, etc. Real estate’s three fundamental uses: Identify tangible assets of land and buildings Referring to industry or business activities related to acquisition, operation, and disposition of physical assets Real estate: the land and its permanent improvements (including land above/below the ground) Improvements on the land: any FIXED structures such as buildings, fences, walls Improvements to the land: components necessary to make the land suitable for building construction or other uses; “infrastructure” such as streets, walkways, storm water drainage systems, etc. Raw land: land that does not include any improvements Real property: a “site built” house Personal property: things that are “movable” and not permanently affixed to land Industry Issues 1-1 “Skyscrapers: A Shift in Development Trends” In the past, religious and spiritual motives have driven developers to super-tall skyscrapers Modern times have been motivated by economics, mainly beginning in the US in the late 19 th century Starting in Chicago, although New York evolved into the leading skyscraper city during the 20 th century The height of the building is related to the value of the property Shifts have been to the Far East due to global economic scene (China) Concept Check 1.1 and 1.2 The major difference between real and personal property is whether or not the property is movable or permanently affixed to land Tangible assets are physical assets and intangible assets are nonphysical assets. Real estate is a tangible asset, but a bundle of intangible rights is also associated with the ownership and use of the property.
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Real Estate and the Economy Real estate generates over 28 percent of U.S. GDP, creates jobs for nearly 9 million Americans, and is the source of nearly 70 percent of local government revenues Total contribution of the housing sector alone is about 20 percent of GDP United States represents about 6 percent of earth’s land area, approx. 2.3 billion acres Acre: 43,560 feet, about 209 feet square Single family lot is between 1/5 and 4/5 of an acre 48 states compromises 1.9 billion acres and that 71 percent of this acreage is in nonfederal, rural land uses Undeveloped US Land is separated by: Water areas and federal lands (23 percent) Cropland and Conservation Reserve Program (21 percent) Range land (21 percent) Forest land (21 percent) Pasture and other rural land (6 and 2 percent) Developed land has increased by 34 percent over a 20-year period
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This note was uploaded on 04/06/2008 for the course REAL ESATE 306 taught by Professor Mccabe during the Fall '08 term at Wisconsin.

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RE 306 Exam1 Study Guide - Real Estate-EXAM 1 STUDY GUIDE...

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