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  1. REAL ESTATE Introduction to Business and Marketing Chapter 32.1

  2. OBJECTIVES Identify the three types of residential property Discuss aspects of home buying Determine the difference between rental property and underdeveloped property

  3. 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

  4. INVESTING IN REAL ESTATE Real Estate land and anything attached to it, such as buildings or natural resources 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 investments

  5. TYPES OF HOMES • The type of residential property that people pick depends on their income and needs • Single Family Homes • Multi-Unit Housing • Manufactured Homes

  6. 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

  7. MULTI-UNIT HOUSING • Single buildings divided into various units • Includes: • Duplexes • Townhouses • Condominiums

  8. 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

  9. 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


  11. 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

  12. HOME VALUES • Factors affecting home values include: • Size • Condition • Quality • Location

  13. HOME VALUES Home Equity the value of a piece of property less the amount still owed on the money borrowed to purchase it The amount of equity you have in a home is very important.

  14. INCOME PROPERTY • With income property, the owner can product income in two ways: • Collect Rent • Sell for Profit

  15. RENTAL PROPERTY Rental Property any type of dwelling unit or other property rented for a length of time Apartment buildings and commercial properties are two common types of rental property

  16. UNDERDEVELOPED PROPERTY Underdeveloped Property unused land intended only for investment purposes Underdeveloped property usually does not have utility services and cannot be farmed