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Real estate values are frequently influenced by factors beyond the control of the owner. For example, interest rates can have a significant impact on property
Real estate values are frequently influenced by factors beyond the control of the owner. For example, interest rates can have a significant impact on property values because most owners of real property borrow money and thus the cost of borrowing money (the interest rate) can have an effect on the price of the property. REE QUESTIONS - MAKE SURE YOU ANSWER ALL FOUR A. Chicago is an attractive and vibrant place for young people and many of those just finishing college in the Midwest move to Chicago upon graduation. Assuming the remaining population in Chicago remains unchanged, briefly explain how the influx of college- educated people could impact the labor market and thus commercial real estate. B. Briefly describe how Political Risk (actions of government or government agencies) can impact real estate values and provide some examples. C. Describe how the existing real estate stock (supply) and the absorption of space (demand) influence property values? D. Based on what you know from the work we have done in class, describe how borrowing money (leverage) can help increase your return on a property you own. Real estate values are frequently influenced by factors beyond the control of the owner. For example, interest rates can have a significant impact on property values because most owners of real property borrow money and thus the cost of borrowing money (the interest rate) can have an effect on the price of the property. REE QUESTIONS - MAKE SURE YOU ANSWER ALL FOUR A. Chicago is an attractive and vibrant place for young people and many of those just finishing college in the Midwest move to Chicago upon graduation. Assuming the remaining population in Chicago remains unchanged, briefly explain how the influx of college- educated people could impact the labor market and thus commercial real estate. B. Briefly describe how Political Risk (actions of government or government agencies) can impact real estate values and provide some examples. C. Describe how the existing real estate stock (supply) and the absorption of space (demand) influence property values? D. Based on what you know from the work we have done in class, describe how borrowing money (leverage) can help increase your return on a property you own
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