FIN 3351 Chapter : Chapter 1 Book Notes
Document Summary
Improvements on the land include any fixed structures such as buildings, fences, walls, and decks. Improvements to the land include the components necessary to make the land suitable for building construction or other uses: personal property refers to things that are movable and not permanently. A motor home is personal property, while a custom. Participants in the capital markets invest in stocks, bonds, mutual funds, private business enterprises, mortgage contracts, real estate, and other opportunities with the expectation of receiving a financial return on their investment. Although it is sometimes physically possible to move a building from one location to another, this is generally not financially feasible: real estate markets tend to be localized. We mean that the potential users of a property, and competing sites, generally lie within a short distance of each other: real estate markets tend to be highly segmented due to the heterogeneous nature of the products.
