intro to property and management

Question 1

what happens to the stability of an investment as you go higher up the luxury property market

Answer 1

the investment is less stable as the demand is influenced more by economic fluctuations and trends (affordable housing is always a safe investment option as there will always be a demand

Question 2

why is investing in care homes a safe option right now

Answer 2

the proportion of elderly people above the age of 85 will double in the next 25 years

Question 3

what is a smart city

Answer 3

an urban area that uses different types of electronic internet of things (IoT) sensors to collect data and then uses insights gained from that data to manage assets, resources and services efficiently e.g. monitor crime, waste management, water supply

Question 4

what is the most popular property developer

Answer 4

private enterprise (above local authorities and housing associations)

Question 5

what is Brownfield land

Answer 5

land that has previously been built on

Question 6

what is grey belt development

Answer 6

development over the ugly areas of the green belt

Question 7

how many homes does the current labour government promise to build over the next parliament

Answer 7

1.3 million

Question 8

what is the current labour government’s policy on affordable housing

Answer 8

they promise that 50% of development on the green belt land must be affordable housing

Question 9

how much does the real estate sector contribute to the UK’s GDP annually

Answer 9

£1.7 billion

Question 9

what is the return of the UK property market

Answer 9

7.1% per annum (IPF) with a 5-year average property investment forecast

Question 10

which areas doe the UK act as a leading force in

Answer 10

green building design
green construction
green asset use
repurposing of existing assets
green finance

Question 11

by 2025 what percent of the UK population is predicted to be over 25

Answer 11

20%

Question 12

what is BREEAM

Answer 12

the UK’s Building Research Establishment (BRE) created BREEAM (Building Research Establishment Environmental Assessment Methodology) as a way to rate a buildings sustainability

Question 13

define leasehold and key characteristics

Answer 13

Form of property ownership that gives a person (the leaseholder) the right to occupy land or property for a fixed period, known as the “term.”
Fixed term
obligations to the freeholder
when term expires, ownership renews to the freeholder unless renewal

Question 14

define freehold and key characteristics

Answer 14

The most complete form of land ownership in the UK. You own the building and the land it is situated on.
no restrictions on duration
perpetual ownership - can be passed down to heirs and sold or transferred as see fit

Question 15

define heterogeneity

Answer 15

the quality or state of being diverse in character or content

Question 16

what is ITZA

Answer 16

In Terms of Zone A
a way of valuing retial property.
The Basic principle that the part of the shop seen by passers by (ZONE A nearest to the window) is typically worth more than the inside of the building.
1. Split the shop into zones
2. Take the measurements of zone A
3. Zone B is worth half of zone A
4. Zone C is worth a quarter of zone A
5. Zone D (remainder) is worth 1/8th of zone A

Question 17

what is an exit strategy

Answer 17

A plan for how an investor intends to sell or dispose of the property in the future.

Question 18

what is the current average commercial lease length in the UK

Answer 18

Commercial property leases in the UK typically range between 5 and 15 years in length, with the market average currently being around seven years, compared with 23 years in 1990.

Question 19

what is debt financing

Answer 19

Debt financing is a way for a business to raise money by borrowing funds and agreeing to repay them with interest over time. It’s a common way for businesses to fund growth and cover costs.
example - gearing