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Real Estate Principles, 9 th Edition. By Charles F. Floyd and Marcus T. Allen. Chapter 1. Why Study Real Estate?. 2. Effective real estate decision making A specialty area under business. The Role of Real Estate Studies in Business Education. 3. Personal decisions
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Real Estate Principles, 9th Edition By Charles F. Floyd and Marcus T. Allen
Chapter 1 Why Study Real Estate? 2
Effective real estate decision making A specialty area under business The Role of Real Estate Studies in Business Education 3
Personal decisions Should I buy or lease? In what type of neighborhood should I invest? What type of financing should I use? Should I use a broker? How should I structure the contract for the best deal? How do I decide in which property I should invest? Personal and Business-Related Real Estate Decisions 4
Personal and Business-Related Real Estate Decisions Business decisions • Should the company buy or lease? • Should the company expand the current building or buy a new one? • What type of financing should be used? • Should the company acquire a larger building than needed and rent out the rest? • Should the company consider relocation? 5
Organization of This Book • Part One • Real Estate Legal Analysis Chapters 2-7 • Part Two • Real Estate Service Industries Chapters 8-10 • Part Three • Real Estate Market Analysis Chapters 11-15 • Part Four • Real Estate Finance and Investment Analysis Chapters 16-19 6
Special Characteristics of Real Estate • Fixed location • See Case Study “The Importance of Location” • Uniqueness • Interdependence of land uses • Long life • Long term commitments • Large transactions • Long gestation period • See Case Study “The Gestation of Park Springs” 7
The Economic Importance of Real Estate A vital part of the economy 8
The Real Estate Industry: The Private Sector Real estate brokerage Real estate brokerage specialties Property management Real estate finance Appraisal Counseling Development and construction Asset management Land-use planning 9
The Real Estate Industry: The Public Sector Taxation Acquiring property for public use Government and quasi government financial agencies Time value of money concepts Mortgage mechanics Investment property analysis Development project analysis 10