REAL ESTATE Investments 12.8. Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available.

Slides:

Advertisements

Similar presentations

Family Economics and Financial Education Take Charge of your Finances

Advertisements

The Difference Between Renting and Owning a Home

Renting vs. Owning The Difference Between Renting and Owning a Home.

UNIT 7: CONSUMER SKILLS Section 4: Buying a House.

All Numbers in this presentation are in United States Dollars.

Agricultural Leases Landlord –Tennant Contracts. Farm Lease Agreements Should be equitable for each party Specific language and clear provisions in the.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

Florida Real Estate Principles, Practices & Law 38th Edition Linda L. Crawford Copyright © 2015 Kaplan, Inc. All rights reserved.

Investment Opportunities in Today’s Real Estate Market.

Managing Your Money Personal Finance. Disposable Income.

 It’s a great feeling when you buy your first house, but it comes with expenses that you didn’t have to worry about when you rented  Despite having more.

BUYING VS RENTING. BUYING Homeowner Advantages  Freedom of use  Pride of ownership  Greater Privacy  Income tax benefits  Opportunity to build credit.

2 8/21/ Chapter 2 Income Concepts. 2 8/21/ Chapter Objectives Upon completion of this chapter, the participant will be able to: –Contrast.

7-1: Buying a Home. Costs of Financing a home: Purchase price = tag price Downpayment = a percentage of the purchase price; between 0% and 30% Interest.

Renting or Owning a Home

Ch 15 Home Purchase Decisions. Outline 1. Rent vs. Buy Decisions 2. How Much Can You Afford? 3. Choosing the property: a) Choosing the Area b) Evaluating.

© South-Western Educational Publishing Ch. 21 and 22 Renting vs. Buying a Residence Rent or Buy? The Rental Process The Home-Buying Process.

Housing The bare basics you need to know.. Vocabulary Lease Mortgage Down-payment Property tax Home Owners Insurance.

Financial Analysis Chapter #3. Net Worth Statement (Balance Sheet) Net Worth = Assets - Liabilities Net Worth (Owner's equity)

Renting vs. Owning Family Economics and Financial Education Take Charge of your Finances.

Vehicle Related Expenses You can claim the following vehicle related expenses: – gas – Oil changes – Repairs – Toll charges – Parking – Insurance – Tax.

Return, Income, Value and Capitalization Learning objectives: –Understand the meaning of investment decision making. –Understand the role of the appraisal.

Engineering Economy Why is Engineering Economy important? Practical everyday questions –Should you finance your car or pay cash? Finance for $6995 –vs-

SAVING AND INVESTMENT BASICS

Personal Finance QUIZ REVIEW – CREDIT CARDS, BANK ACCOUNTS, BUDGETING, ETC.

Research for Monday Night – Your Own Research Housing values Cars values Interest Rate for Cars, Houses, Savings, and Retirement Accounts – Bring your.

Renting vs. Owning. Costs of renting Monthly rent Security deposit Utilities – electricity, water, garbage, etc. Renter’s insurance.

Real Estate Investment Chapter 11 Tools of Analysis © 2011 Cengage Learning.

Home buying Case Study By Arthur Espinoza.

RENTING VS. OWNING FAMILY ECONOMICS AND FINANCIAL EDUCATION TAKE CHARGE OF YOUR FINANCES.

Chapter 9 Rental Activities ©2007 CCH. All Rights Reserved West Peterson Ave. Chicago, IL CCH Essentials of Federal Income.

As a Book-Keeper it is important that you can identify and categorise items of business income and expenditure Income (business receipts) – can either.

Investment Opportunities in Today’s Real Estate Market C & C Financial Services, Inc.

Employability--Chapter 29 Mrs. Sorrell.  At home?  With a roommate?  On your own?

Road to Retirement Course. Introduction to Investing “When you’re making money doing what you love, you are already retired.” “Many describe the new retirement.

Reveals your overall net worth at the moment by illustrating the difference between what you owe and own.

Real Estate and High-Risk Investments Chapter 16.

House Hunting Finding your own place is exciting, but it is also a big responsibility. What are some costs associated with renting or buying a home?

Citizens and The Economy. How do we contribute to the economic common good?? Be productive!!! What does this mean???

Renting vs. Owning G1 © Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home Funded by a grant.

Economics 434 Financial Markets Professor Burton University of Virginia Fall 2015 November 19, 2015.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

Managing Your Money Chapter 23.

Chapter 13, Cost of ownership Mortgage payment (monthly) Property taxes (monthly) Closing costs (one time cost) Points (included in above cost,

Renting or Buying Housing Chapter Choosing Housing Two important factors: Income and Location Income: ▫The housing you can afford depends on your.

LEARN ABOUT THE PROCESSES OF SAVING AND INVESTING YOUR MONEY AND SOUND FINANCIAL PLANING Savings and Investment Planning.

Your Own Home The benefits and pitfalls of renting versus owning Renting Owning Mortgage 3 C’s Pre – Qualification Shop for a Loan Pre-Approval On-Approval.

Chapter 1 Overview of Real Estate Finance. Chapter 1 Learning Objectives Understand the relationship between finance and real estate Understand the relationship.

Renting Vs. Buying a Home. Scenario A renter starts out paying $800 per month with annual increases of 5%. A homeowner purchases a home for $110,000 and.

Renting vs. Owning Economics2015.  Housing is the largest personal expenditure (About 1/3 of a person’s income.)  Choosing where to live is based upon.

Rights and Responsibilities of Renting or Buying a Home.

Renting Vs. Owning What choice will you make?. Show of hands O How many of you plan on owning your own home someday?

Buy vs. Lease a Home Jeffrey Scheinost – Organizer Stephen Casey – “Techie” Omabamid Odubela – Summarizer Mohammad Fazil – “Techie” EGR 403, Summer 2004,

Real Estate Finance Residential decision making: Buy or lease?

HOME BUYING. How Much Can You Afford? Monthly payments – 28% of Gross Income Price of Home – 2-3 X Gross Income Gross Income – total income before taxes.

Modern Real Estate Practice in Illinois Eighth Edition Chapter 18: Property Management ©2014 Kaplan, Inc.

FINANCIAL MANAGEMENT Danielle, Breanna, Trinity, Sarah, Jada.

How to fill out the Parent’s Financial Statement Section 4 – Assets and Liabilities.

Housing Deciding between Renting and Owning a House.

Farmland Purchase Analysis. Resources ISU Ag. Decision Maker; – Farmland Purchase analysis – Farmland values – Costs of production – Price assumptions.

Investment Opportunities in Today’s Real Estate Market.

Planning for the Future

Money Trek Project Module 6: Renting & Buying a House

Florida Real Estate Principles, Practices & Law 39th Edition

Corporation Tax Other income Case III, IV, V, and chargeable gains

Is It Safe to Invest in Real Estate ?

The Difference Between Renting and Owning a Home

13 Income Capitalization Approach

Family Economics and Financial Education Take Charge of your Finances

Valuing Real Estate Return on Investment Calculation (ROI)

Presentation transcript:

REAL ESTATE Investments 12.8

Vocabulary Rental Property – real estate available for being rented and an alternative to investment opportunities available at financial institutions Rent – a fee for the use of property however not all of it is profit and must include cost of: mortgage interest taxes repairs insurance depreciation … Cash Investment – Money used to buy the property/Down payment

Formulas Needed

Find the a) annual rental income, b) annual net income & c) annual yield to the hundredth %.

Now suppose Nick wanted an annual yield of 11%. What would he need to charge for rent per month?

Now all of our examples were about home rentals. Can you think of other types of real estate investments? Business lease Farmland Vacation home Hotels Time share Storage units