Economic characteristics of land Flashcards
1
Q
What are the four economic characteristics of land?
A
- ) Scarcity
- ) Modification
- ) Fixity
- ) Situs
2
Q
What is scarcity?
Economic characteristics of land
A
Supply and demand: when there is a shortage of something - the price goes up.
3
Q
What is modification?
Economic characteristics of land
A
The value of land is affected by man-made changes to the land. (These changes can be on-site or off, i.e. better transportation to and from the site, good schools, etc.)
4
Q
What is fixity?
Economic characteristics of land
A
Land and additions to the land take long periods to pay for themselves. (Because of this, investors must analyze the long-term nature of owning an investment property).
5
Q
What is situs?
Because of this, investors must
A
