Introduction to Business and Marketing Chapter 32.1.
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Transcript of Introduction to Business and Marketing Chapter 32.1.
![Page 1: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/1.jpg)
REAL ESTATEIntroduction to Business and Marketing
Chapter 32.1
![Page 2: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/2.jpg)
OBJECTIVES
Identify the three types of residential
property
Discuss aspects of home buying
Determine the difference between
rental property and underdeveloped
property
![Page 3: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/3.jpg)
THE MAIN IDEA
Real estate is an investment
option.
Residential property, such as
single-family homes, is
usually considered a good
investment
Property can also generate
income
![Page 4: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/4.jpg)
INVESTING IN REAL ESTATE
Unlike stocks and bonds, real
estate is something you can
use
A home is considered a good
investment because home
prices rise over the years
Homes fluctuate in value, just
like other investmentsReal Estateland and anything attached to it, such as buildings or natural resources
![Page 5: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/5.jpg)
TYPES OF HOMES
The type of residential property that
people pick depends on their income and
needs
o Single Family Homes
o Multi-Unit Housing
o Manufactured Homes
![Page 6: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/6.jpg)
SINGLE FAMILY HOMES
The most popular type
of property
Usually on its own lot
Separate from other
buildings
Range from two-
bedroom homes to
mansions
![Page 7: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/7.jpg)
MULTI-UNIT HOUSING
Single buildings divided
into various units
Includes:
• Duplexes
• Townhouses
• Condominiums
![Page 8: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/8.jpg)
MANUFACTURED HOMES
Prefabricated houses are
partly assembled at a
factory, and put together at
a building site
Mobile homes are fully
assembled at factories
Cost is lower than other
types of homes
![Page 9: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/9.jpg)
BUYING A HOME
Most people have to
finance the purchase of a
home with a home
mortgage loan
Buying a house requires a
down payment, which is
usually 20 percent
![Page 10: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/10.jpg)
HOUSING COSTS
![Page 11: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/11.jpg)
BUYING A HOME
Home buyers often
obtain a real estate
agent to help them find
a home
Agent makes a
percentage of the sale of
the home
![Page 12: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/12.jpg)
HOME VALUES
Factors affecting home
values include:
oSize
oCondition
oQuality
oLocation
![Page 13: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/13.jpg)
HOME VALUES
The amount of equity
you have in a home is
very important.
Home Equity the value of a piece of property less the amount still owed on the money borrowed to purchase it
![Page 14: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/14.jpg)
INCOME PROPERTY
With income property, the owner can
product income in two ways:
oCollect Rent
oSell for Profit
![Page 15: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/15.jpg)
RENTAL PROPERTY
Apartment buildings
and commercial
properties are two
common types of rental
property
Rental Propertyany type of dwelling unit or other property rented for a length of time
![Page 16: Introduction to Business and Marketing Chapter 32.1.](https://reader036.fdocuments.us/reader036/viewer/2022081506/56649db05503460f94a9e162/html5/thumbnails/16.jpg)
UNDERDEVELOPED PROPERTY
Underdeveloped
property usually does
not have utility
services and cannot
be farmed
Underdeveloped Propertyunused land intended only for investment purposes