infrastructure investment. This is an example of which

Unit 1: Characteristics of Real Estate Flashcards

Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property?ScarcityImprovementsPermanenceArea preference PermanencePermanence of investment means that some improvements will remain stable long term, with stable returns over time.Which physical characteristic of land contains the concept that while improvements may deteriorate over time, the land itself cannot be destroyed?ImmobilityUniquenessIndestructibilityPermanen ce of investment Indestructibility Permanence of investmentInvolves improvements, such as sewer, roads, and utilities, that are long-term, stable investments with relatively stable returns over time What are some considerations that make location so important to the price of the land?A The topography and use of the landB The local communityC The viewD The availability, placement, or cost of installing utilitiesE Access to waterF Access and placement of roads, dwellings, and other structures immobilityThe geographic location of a piece of land is fixed; it can never be changed.Which physical characteristic of land contains the concept that the geographic location of a piece of land is fixed and can never be changed?ImmobilityUniquenessIndestructibilitySitus (location) Immobility Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn't one prior and immediately increase the value of his investment. Which economic characteristic of real property is this?ScarcityImprovementsPermanenceArea preference Improvements UniquenessLand isn't interchangeable. One piece of land isn't exactly like another.Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, in six months Lewis' condo will be worth much more. Which economic

characteristic does this demonstrate?ScarcityImprovementsPermanenceArea preference Area preference Location or area preferenceA property's value is impacted by where it's situated and how interested people are in buying or living in the area ImprovementsA land's value can be affected by the changes that are made to it

ScarcityThe concept that there's a finite amount of land Topographywhat are parts of the land's topography?the dimensions and contours (curves of the land as it slopes up --or down --hill) of the landTrees, forests, and other vegetationWetlands and water sourcesContoursDimensions IndestructibilityWhile improvements may deteriorate over time, the land itself can't be destroyed.