... APPLYING THE RIGHT MINDSET TO
INVESTING IN REAL ESTATE
As professionals in the realestate markets, we have worked with thousands
of realestate investors and businesspeople, and we know that there ... buying USrealestate today,
wisely.”
— Hunter Milborne, chairman (ret.) and partner,
Sotheby’s International Realty Canada
“Anyone thinking about making an investment into USrealestate will ... you are going to achieve success in
real estate investing in the United States.
We know that Canadian realestate investors like you are watching US
property markets and looking for tried-and-true...
... the results of the local realestate markets more transparently for
citizens and experts.
The main jobs – ordered by law – are the following:
to public realestatemarket reports (“Grundstücksmarktberichte”) ... valuation
experts to observe and know this development on the realestate markets in geo-risk areas –
for more transparency in the realestatemarket and for risk assessment for banks (for
mortgages). ... Washington / USA, April 19-26 2002
MÜRLE, Michael, 2001, Assessment of the market value of realestate with private
housebuilding derived from the summation method of valuation with adjustment...
... them as early as possible
in your realestate career so you can avoid costly mistakes later on.
Special Bonus Chapter: Four Wealth-Preserving Secrets of RealEstate Masters 83
file all the appropriate ... will determine how
successful you are in real estate.
A Story from the Early Career of Donald J. Trump
When Donald J. Trump was starting his career in real estate, he could
have chosen a safer ... he ultimately took. His father’s
real estate company had already developed impressive properties in
Queens, New York. He could have built an enviable realestate empire
there without ever...
...
Space Market:
Stock Adjustment
Asset Market:
Construction
Space Market:
Rent Determination
Asset Market:
Valuation
Q*
R*
P*
C*
D
0
D
1
MIT Center for RealEstate
Real Estate Micro-economics: ...
P*
C*
D
D
Construction (SF)
Stock Adjustment
Asset Market:
Rent Determination
Asset Market:
enter for Real EMIT C state
The Value of USRealEstate Assets (1990)
$, in billions % of ... for Real EMIT C state
Week 1: Introduction
ã The space versus asset market: 4 Quadrant
math.
ã RealEstate Micro Economics: Hedonics,
Location, density, government regulations.
ã Real Estate...
... street and seen a house that just does
NOT fit in. They are often referred to as “that bubble house” or “that
George Jetson house.” Don’t be that house.
There are much less obvious trends that can ... allowing me
to use some company resources and drawings. Dennis Dahm, Real
Estate Courses, Inc. was helpful in providing information on real estate
and financing. Dawn BeVard created the illustrations. ... the market will not be interested in your home! Market studies are
never this cut and dried. However, the trends are usually obvious if you
drive the new communities and look carefully. Ask realtors...
...
Goes Here
WHAT HAS BEEN DRIVING THE PROPERTY MARKET
SINCE 2003?
ãLimited capital markets
ãAn emerging condo market in Hanoi and HCMC
ã Conspicuous consumption
ã Ability to borrow from local ... C
ourt
City View
Units
0
10
20
30
40
50
Supply Average Rent ( $US/ sqm/mth)
CB Richard Ellis | Page 40
Client Logo
Goes Here
HCMC RETAIL MARKET
unit: US$ /sqm/month
COMP AR IS ON OF R E T AIL R E NT S IN ... times
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2000 2007
Market cap
Market cap: increased by 300 times
CB Richard Ellis | Page 50
Client Logo
Goes Here
Hotel Market HCMC
68.00%
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
82.00%
84.00%
5...
...
for us to say. The point here is not that real- estate agents are bad peo-
ple, but that they simply are people—and people inevitably respond
to incentives. The incentives of the real- estate business, ... his house.
In truth, Duke had already sold his house for a solid profit. (It isn’t
known whether he used a real- estate agent.) And most of the money
he raised from his supporters was being used ... a house is, on some level, truly fantastic.
“Fantastic,” meanwhile, is a dangerously ambiguous adjective, as is
“charming.” Both these words seem to be real- estate agent code for a
house that...
...
Construction (SF)
Space Market:
Stock Adjustment
Asset Market:
Construction
Space Market:
Rent Determination
Asset Market:
Valuation
Q*
R*
P*
C*
D
0
D
1
MIT Center for RealEstate
Forecast ... Determination
Asset Market:
Valuation
Q*
R*
P*
C*
D
0
D
1
R**
P**
C**
R
1
P
1
enter for Real EMIT C state
Week 1: Introduction
ã The space versus asset market: 4 Quadrant
math.
ã RealEstate ...
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Total Employment Growth (L)
Real ADR (R) Supply Growth Rate (L)
enter for Real E
U.S. RealEstate
MIT C state
Ownership, 1990
All RealEstate Residential Only Nonresidential Only...
... real property being financed.
REALESTATE FINANCE
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate,
Notary, Nurse, Food Handlers, Tax and Securities
1-8
real estatemarket ... paramount importance to the realestate industry, for without the
availability of money to reach effective levels of realestate sales and development,
significant realestate activity ceases. Since ... Participation 1-2
Housing Cycles 1-3
Recent Developments 1-4
THE 1989 S&L Bailout 1-5
THE IMPORTANCE OF FINANCE TO REALESTATE 1-7
Real Estate Finance 1-7
Development 1-8
Real Estate Brokerage...
... versus quantity
changes?
P
Output
Market
Q
Q
D
C=α
K
R + α
L
W
Q’
D
W/P
Labor
Market
R
Real Estate
Market
L
K
L
D
=α
L
Q
K
D
=α
K
Q
L
S
K
S
W’/P’
C’=α
K
R’ + α
L
W’
R’
MIT Center for Real Estate
Week ...
Price, wage versus
quantity changes.
C=α
K
R + α
L
W
Q
Q
D
C=α
K
R’ + α
L
W’
W/P
Labor
Market
R
Real Estate
Market
L
K
L
D
=α
L
Q
K
D
=α
K
Q
L
S
K
S
L’
S
W’
R’
MIT Center for Real Estate
Study ... Rents do the same
in structures market.
Q
D
Q
C=α
K
R + α
L
W
W/P
Labor
Market
L
D
=α
L
Q
L
S
R
Real Estate
Market
L
K
K
D
=α
K
Q
W
K
S
R
MIT Center for Real Estate
In the Long run:
1). If...