Study Guides (238,613)
Canada (115,253)
REAL 1820 (10)

Midterm #1 Notes.docx

4 Pages
Unlock Document

University of Guelph
Real Estate and Housing
REAL 1820
Douglas Adlam

Midterm #1 Notes Characteristics of Real Estate Real estate has many distinctive characteristics  Both a consumption good and investment good o Consumption good: provides service o Investment good: single largest investment for many families/businesses o House prices generally go up over time  Fixed Location: no two homes share a single location o Location – Specific goods/services – access to jobs, school quality, neighborhood, etc. o Implications: Real estate markets segmented and localized.  Heterogeneity: No two units are exactly the same. o Many reasons: Physical characteristics o Implications: High search costs/brokerage fees are generally 3%  Durable: Long life of real estate o Price of a building decreases over time to a certain point, and then begins to increase due to historical value.  Large Economic Unit o infrequent purchase; Access to capital markets and mortgages are usually required. o Implication: mortgage market condition influence housing prices.  Extensive Government Regulations: o E.g. zoning law, building codes o Implications: Government can affect real estate supply and demand Types of Real Estate Classification of Real Estate by Use Residential Type  Residential is defined by zoning bylaws  Definition of residential dwelling – must contain self contained set of rooms.  Must be used as residential premises, and contain bathroom/kitchen facilities  Must have a means of egress to the outside of the building  There are three sub-categories depending on density o Low density  Single family, semi-detached o Medium Density  Row housing, Town houses, Apartment (Low rise 1-4 stories, mid rise 5-9 stories o High Density Commercial Type Office Buildings  Class A: Excellent location, high quality tenants, competitive rents, professional management.  Class B: Good location and management; good tenants; very little functional obsolescence (little need for upkeep)  Class C: 15-25 years old but maintains steady occupancy. Retail  Enclosed Malls: A shopping centre enclosed within a large structure, having numerous stores/entertainment  Strip Malls Mixed-Use Building  Combine Office, retail and sometimes residential  Popular in core business areas. Two considerations, one long commuting and convenience Hotel:  1-5 Star Hotels  Motel: Located along highways, have orientation to outside (doors usually face interior hallways, but motels have exterior)  Bed and Breakfast: Short Term lodging Industrial Types Warehouse  Store goods and materials  Plants or Factories: Often custom built to meet demand or particular process or production line.  Large variations in building materials and structures. Hard to convert to another factory. Property Types classified by Tenure Ownership  You own the real estate Condominium  A form of housing tenure where you own a unit and share the common area with other owners.  Self governing: have
More Less

Related notes for REAL 1820

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.