FINA 210 Lecture Notes - Lecture 1: Cash Flow, Income Approach, Canadian Real Estate Association
25 Apr 2016
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Document Summary
Real estate investment is largest investment in the world. Stock and bond is higher risk and lower return than the real estate investment. Major players: tenant, government, banks, investor. Minor players: notary, lawyers, contractor, broker (real estate agent, whole inspector. Major portion of the profit that you make from real estate capital gain. Capital gain is selling price of your investment minus original cost of your investment. Longer you keep the real estate investment the higher will be capital gain. The purpose of real estate investment (rei) is to buy land and all physical properties attached to it, such as houses, trees, fences and so on, in order to generate income by selling or renting it. For example, some people might buy a house to sell it in 10 years when property value has increased; others might buy an apartment building and rent the apartments to create profit.
