Iaao 102 assessment - Study guides, Class notes & Summaries

Anticipation Value is created by the expectation of benefits to be derived in the future Substitution the prices, rents, and rates of return of property tend to be set by the current prices, rents and rates of return for equally desire able substitute properties. Contribution the value of a component of real estate can be measured by the amount it contributes to net operating income because net operating income can be capitalized into value. Market Value means the most probable pric...

Surplus Produtivity Allows us to capitalize land income into an indication of value Return ON Overall Yield or Discount Return OF FWasting Asset or Recapture Leverage The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage A loan that is neither insured nor guaranteed by the federal government.

Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage A loan that is neither insured nor guaranteed by the federal government. Contract rent The actual rent paid in accordance with terms of a lease. Minimum base rent The fixed portion of rent under the terms of a percentage lease.

Anticipation Value is created by the expectation of benefits to be derived in the future Substitution the prices, rents, and rates of return of property tend to be set by the current prices, rents and rates of return for equally desire able substitute properties. Contribution the value of a component of real estate can be measured by the amount it contributes to net operating income because net operating income can be capitalized into value. Market Value means the most probable price whic...

Return ON Overall Yield or Discount Return OF Wasting Asset or Recapture Leverage The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds Positive Leverage This is achieved when funds are invested in property, which has a higher rate of return than the cost of borrowed funds