FINC 371 Final Exam (New Material) || All Questions Answered Correctly.
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Course
FINC 371
Institution
FINC 371
Types of residential development: correct answers 1. single family detached
2. single family attached
3. multifamily
4. manufactured homes
5. second homes
Single family detached houses: correct answers - most sought after by American families
- provides more privacy
- "elbow room"
- bes...
FINC 371 Final Exam (New Material) || All Questions
Answered Correctly.
Types of residential development: correct answers 1. single family detached
2. single family attached
3. multifamily
4. manufactured homes
5. second homes
Single family detached houses: correct answers - most sought after by American families
- provides more privacy
- "elbow room"
- best resale value
Patio or zero-lot-line houses: correct answers - construction is from lot line to lot line
- outdoor living area in an interior garden court enclosed by the house
- smaller yard, but very private
- generally one story and L shaped and may have a side yard
Single family attached houses: correct answers - clustering requires less road frontage and
shorter utility lines
- lower development costs per unit
- higher density.. lower land costs
- less ecological impact
- reduced yard work
Types of single family attached homes: correct answers - town home: has own door, shares a
wall(s), front and rear yards, face street or common area
- plexes: contains two or more units in one building, shares characteristics of town home and
single family detached
- patio or zero-lot-line houses
Multifamily residences: correct answers - cheaper alternative
- empty nesters, young couples, single person households
- no down payment
- allow you to live in certain areas you couldn't normally afford
- no maintenance/yard work
- tenants can change residences easily
Condominiums and cooperatives: correct answers - ownership alternatives
- condo: owner holds title and shares ownership of common areas
- co-op: owner owns stock in co. that holds the title
Manufactured homes (mobile home): correct answers - single wide, double wide, triple wide
- assembled on site (24ft-36ft)
, - bad reputation in the past, but design has been improved to resemble a conventional house and
improved construction
Pros of manufactured homes: correct answers - economies of scale and controlled environment
in construction
- affordable ($40 psf vs $90 for site built)
- trend towards owner occupied manufactured home subdivisions (rather than rental parks) has
led to better lending standards with 30 year FHA-insured loans
Cons of manufactured homes: correct answers - reputation
- typically decrease in value over time
- lenders treat as personal property: short term, high interest (10-15 year, 2% higher interest than
conventional loans)
- difficult to get zoning in a city
Second homes: correct answers - used for leisure time enjoyment
- access to amenities (mountains, beaches, golf, ski)
- occupied only part of the year
- "time shares"- sold to a number of buyers, each gets exclusive ownership for certain time
period
Steps in market and feasibility analysis: correct answers 1. delineation of the market area
2. analysis of recent economic trends in the local market area
3. determination of possible changes in demand
4. analysis of potential supply
Absorption rate: correct answers the number of units that are being absorbed by the market
Delineation of the market area: correct answers - describe the housing submarket in which it will
compete
- explain employment opportunities and commuting ranges
- in large city, must determine extent of employment within commuting ranges
- public transportation can expand market area and commuting range
Analysis of recent economic trends in the local market area: correct answers - past and current
trends
- vacancy rates, absorption rates, rent vs. own
Determination of future demand: correct answers - such as: employment, disposable income,
population, absorption rate, household characteristics
- what changes in economic base or in national/regional/local conditions will affect demand?
- pipeline of new development
- legislation changes
Analysis of future supply: correct answers - long gestation period so must analyze supply during
that period
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