- You purchase 10 acres of raw land in an area zoned commercial/office. - Streets and utilities are in the street. - The price paid is $6 per square foot. -Holding time: 5 years. Questions. 1. According to the section 'Introduction to Investing in Land', what comment is made about the risk of investing in land? 2. How many square feet are in your parcel? What is its market value (asking price total)? 3. List any costs that you incur holding the land? 4. List any costs that you incur developing the land for a large office building? (You do not have to build the building.) 5. (10 Points). If you want a 15% annual retum on your land investment, what will you have to sell the land for in 5 years? (Per square foot, not including any costs.) 6. What concept(s) regarding land valuation would you use to decide if this is a good choice for investment based on return? 7. If you divide the parcel into 5 equal marketable. commercial lots in a business park, what would you expect to happen to the land value? This is not assemblage. (See 'Acreage') 8. What ideas do you have to minimize your 'carrying' costs? Criteria for Success Every Module includes a Leaming Activity that serves to reinforce course activities. ALL completed Learning Activities are to be submitted via Canvas. Number all responses. POINTS: This activity is worth 25 points. Note: To receive credit for your work, Learning Activities must be completed by the due date noted on the syllabus. If a Learning Activity is not completed during said period, a grade of -0- will be recorded. LEARNING ACTIVIIIES WILL NOT BE ACCEPTED LATE. June 2021 Edition - You purchase 10 acres of raw land in an area zoned commercial/office. - Streets and utilities are in the street. - The price paid is $6 per square foot. -Holding time: 5 years. Questions. 1. According to the section 'Introduction to Investing in Land', what comment is made about the risk of investing in land? 2. How many square feet are in your parcel? What is its market value (asking price total)? 3. List any costs that you incur holding the land? 4. List any costs that you incur developing the land for a large office building? (You do not have to build the building.) 5. (10 Points). If you want a 15% annual retum on your land investment, what will you have to sell the land for in 5 years? (Per square foot, not including any costs.) 6. What concept(s) regarding land valuation would you use to decide if this is a good choice for investment based on return? 7. If you divide the parcel into 5 equal marketable. commercial lots in a business park, what would you expect to happen to the land value? This is not assemblage. (See 'Acreage') 8. What ideas do you have to minimize your 'carrying' costs? Criteria for Success Every Module includes a Leaming Activity that serves to reinforce course activities. ALL completed Learning Activities are to be submitted via Canvas. Number all responses. POINTS: This activity is worth 25 points. Note: To receive credit for your work, Learning Activities must be completed by the due date noted on the syllabus. If a Learning Activity is not completed during said period, a grade of -0- will be recorded. LEARNING ACTIVIIIES WILL NOT BE ACCEPTED LATE. June 2021 Edition