FINA 210 Study Guide - Quiz Guide: Contract, Fiduciary, The Employer
Document Summary
One of four markets that need to be examined to assess the investment climate and market conditions. Not often studies by people investing in real estate. Have to spend money up-front before investing in real estate. Market conditions force market to change on a continuous basis. Value is not equal to cost, despite what most people think. Look at gap between demand and supply, projects in market. Market conditions: very few people analyze the market. Local and federal conditions change due to monetary and fiscal policy. Yes (cid:271)e(cid:272)ause there"s a li(cid:373)ited # of sto(cid:272)ks a(cid:374)d (cid:271)o(cid:374)ds i(cid:374) the (cid:373)arket. Rei = higher return with lower risk, return comes from capital gains. Reduce market risk from inflation, 20% reduction if 20% portfolio in rei. Very few turnovers in commercial market, limited # of buys/sells: depend of appraisals: undervalue asset to overrate return. If liquidity is not an issue, invest in rei because of studies done by experts.