ADMS 3810 Chapter Notes -Capital Good, Business Cycle, Ernest Burgess
3 Feb 2014
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The real estate marketplace actually consists of a very large number of separate markets differentiated by: geographic location international; and. Neighborhood, city and region, and national or: type of real estate properties, etc. Indeed, since each parcel of property has a unique location that cannot be duplicated, it might almost be said that an infinite number of markets exist. After the future cash flow that is expected to be generated by the physical asset is estimated, various claims on that cash flow must be considered. Perhaps the largest claim on the net operating income is that of the lender. Another large claimant is the federal government, which takes a share designated income taxes. The residual or remaining portion is termed the equity cash flow. Property refers to things and objects capable of ownership. In other words, things and objects that can be used, controlled or disposed by an owner.
