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9. Choosing a real estate investment Comparing Real Estate Investments Suppose Deborah wants to invest in real estate and is considering two different residential properties.

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9. Choosing a real estate investment Comparing Real Estate Investments Suppose Deborah wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property property A) has an No of $42,000 and that the other property B has an N of S30.000. I the cap rate is 10%, property A has an estimated value of S In deciding between these two properties, it is important for Deborah to consider other factors. If she is a first-time investor, she is probably better off investing in and property B has an estimated value of s property. (To round your answers to two decimal places.) Alternatively, Deborah might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly mutual fund. Which of the following statements regarding REITs are true? Check all that apply. to They can increase the diversification of individuals who are already invested in the stock market. The value of REITs tends to move in the same direction as the general stock market. They allow individuals to buy shares in a real estate-based stock portfolio. O Income distributed from REIT investments is taxed at 15% 9. Choosing a real estate investment Comparing Real Estate Investments Suppose Deborah wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property property A) has an No of $42,000 and that the other property B has an N of S30.000. I the cap rate is 10%, property A has an estimated value of S In deciding between these two properties, it is important for Deborah to consider other factors. If she is a first-time investor, she is probably better off investing in and property B has an estimated value of s property. (To round your answers to two decimal places.) Alternatively, Deborah might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly mutual fund. Which of the following statements regarding REITs are true? Check all that apply. to They can increase the diversification of individuals who are already invested in the stock market. The value of REITs tends to move in the same direction as the general stock market. They allow individuals to buy shares in a real estate-based stock portfolio. O Income distributed from REIT investments is taxed at 15%

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