Property Market Flashcards
1
Q
Segments of Property Market
A
- Commercial
- Residential
- Agriculture
Heterogenous - segments
2
Q
Features of Property Market
A
- Decentralised ; no central market to trade
- Indivisible - Liquidity ??
- High transaction costs ; estate agents, stamp duty
- Maintenance costs ; landlords
- Government regulation
3
Q
Property prices influences
A
Supply (inelastic ) Demand (Demographics)
Cost of borrowing
Stamp Duty Land tax
4
Q
Direct Property Investment
A
Investors buy property + rent out
sale and lease back
5
Q
Indirect Property Investment
A
Property Bonds
- issued by insurance companies
Property Funds
- Collective Investment investing in commercial property
- Redemption restrictions if too many liquidations
6
Q
Disadvantage of holding property as Direct Investment
A
Illiquid
difficult to sell at price close to market value
