Real Estate Finance and Economics Flashcards
If a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. The statement best explains .
an effect in Macroeconomics
The price of real estate has a tendency to go down in view of the excess in supply vs. the actual demand of the market, is normally referred to as
Buyers Market
The movement of prices will tend to go up because of the higher demand.
a.
Sellers Market
b.
Public market
c.
Buyers Market
a.
Sellers Market
Which occurs because a good becomes relatively more expensive when its price rises?
Substitution effect
When the price of a commodity is raised, buyers tend to buy less of commodity.
Law of downward –sloping demand
Important kinds of market structures are .
Monopoly , oligopoly, monopolistic and perfect competition .
The pag-ibig maximum loan amount. (2017)
6 million
Penalty of the amount due for everyday of delay of pag-ibig loan.
1/20 of 1%
The primary asset of modern commercial banks, accounting for nearly two thirds of assets.
Loans
Take deposits and make loans; they are what most people think of as bank.
Depository Institutions
A financial institution that include brokers, investment banks, under writers and mutual fund companies.
Securities firms
The shares of stock of the REIT must be registered with the Commission and listed in accordance with the rules of the Exchange.
Registration and Listing
Loans over P400 to P3M maybe subject to repricing
Every 3 years but not to exceed 2% from the original rate
Refinancing loan 5% of the loan amount retained to ensure cancellation of mortgage/s prior to PAG-IBIG Fund is referred to
Retail Accounts
A REIT that owns land located in the Philippines must comply with the foreign ownership limitations imposed under the Philippine law.
NATIONALITY REQUIREMENT
Provides and sets of a domino effect on other economic activities which can be referred to the “multiplier effect of real estate”.
The housing or real estate sector
In REIT, A fine of not less than P200,000 nor more than P5,000,000.00 or imprisonment of not less than 6 years and 1 day nor more than 21 years referred as
PENAL PROVISION
Pag-ibig loan charges and deductions processing fee.
3,000.00
Is a stock corporation established in accordance with the Corporation Code of the Philippines and the rules and regulations promulgated by the Commission principally for the purpose of owning income-generating real estate assets.
REIT or Real Estate Investment Trust
Deductions on the first loan release:
6 months interim insurance and 2k processing fee
Interim interest and advance one year insurances.
Deductions on final loan releases
Is by definition equal to price times quantity (PxQ)
TOTAL REVENUE
The practice of charging different prices for the same service to different customers
Price Discrimination
We mean the ultimate economic effect of a tax on the real incomes of producers and consumers by
Incidence
Whether or not the country provides equal health care for all its residents ,health care must be rationed because.
Supply is limited
Takes large individual risks and spreads them so broadly that they become acceptable to a large number of individuals
INSURANCE
Refers to the flow of wages ,interest payments ,dividends ,and other things of value accruing during a period of time .
INCOME
Use as an instrument to help finance and develop infrastructure projects
CAPITAL MARKET
What is the interest rate if the pag-ibig loan amount is over P2M-P3.0M ?
11.5%
Based on the Pag-ibig membership Contribution if the loan entitlement over P1.7 M to 1.8 M ,what will be the monthly contribution ?
850
To be paid upon filing of pag-ibig Housing Loan Application, non-refundable
1000
To be deducted from the loan proceeds of pag-ibig loan
2000
The loan amount retained to ensure cancellation of mortgage/s prior to PAG-IBIG FunD.
5%
Even if a thing has utility, it will not have value if it is overabundant.
SCARCITY
Pag-ibig monthly repayment shall not exceed of the borrowers gross monthly income for loans not exceeding P1,250,000.
35%
REIT act of 2009
RA 9856
REIT distribute at least of its distributable income as dividenD.
90%
Minimum total stock public ownership of shareholders in REIT
50,000 SHARES
Refer to funds of the REIT that can be placed in investment vehicles other than income generating real estate
Investible Funds
