The term real estate commonly refers to activities of management and transaction taking place on the property. It also covers many related activities such as: housing, construction, promotion, consulting, urban planning, architecture, management (greater Toronto area real estate listings). The law and finance are areas that are essential to functioning of the property market.
The property market involves the buying, selling and leasing real estate. Property are mainly OTC, but a small portion is in auction, in case of seizures or goods sold under inheritance conflict. These transactions, they involve new or used goods, involve intermediaries, such as businesses (real diagnosis, property, civil society or body business (property agent, expert, surveyor, property dealer, property negotiator, lawyer, etc.).
These occur during the construction period or within following warranty period.In addition to turnkey contract / construction contract purchaser may, however, also a normal sales contract for already completed (z. B. Old) or unfinished objects (prefabricated house) purchase of developer, by buyer to take the completion at his own expense and risk.
Knowledge of law, finance and taxation are required to practice lawfully rental investment and optimal, including tax level (error reporting income from property, land wrong deficit) and legislative (law of tenant, the landlord obligations, etc.). The prices are set freely between buyers and sellers tend to fluctuate over time depending on external factors (economic or political conditions in particular).
The analysis of behavior of markets over long periods, conducted by Ministry of housing, shows that price changes: a trend growth very close to that of average household income; is auto-correlated. Thus, a market is likely to decline in year N is already lowered in year N-1. Conversely, if prices rise during a year, there is a good chance they increase again next year. Multi-year periods of rising therefore succeed, after market downturns, to multi-year periods of low prices,
Its related to changes in interest mortgage rate, which reflects the tradeoffs between property and fixed income investments. Its correlated to equity markets. Periods of stock market crashes do not coincide with a particular behavior of housing prices. It's related to size of housing stock. Prices also depend on "irrational" difficult to measure variables such as weight beliefs, opportunities for excitement, etc.The speculative dimension of housing market may have an impact on prices, when it leads to formation of property bubble, the importance of which can be as large as that of financial bubbles and in some cases be combined with a financial bubble or in other cases be due to a global financial meltdown.
In addition to cyclical effects, the characteristics of property have an influence on its price. These may be intrinsic to property (ease of access and management, comfort, isolation, exposure, aesthetic, decay, loads and stresses, busy or free space), sentimental items (heirlooms). Rare phenomena may possibly be created by administrative constraints construction.
The comparison unit price of property is usually the price per square meter (or per square foot in some Anglo-Saxon countries). For income properties, we use multiples of earnings and other related measures (discount rate). Finally, units highly variable comparison are also used depending on the type of property (cubic meter meter frontage, price room or apartment, etc.).
The property market involves the buying, selling and leasing real estate. Property are mainly OTC, but a small portion is in auction, in case of seizures or goods sold under inheritance conflict. These transactions, they involve new or used goods, involve intermediaries, such as businesses (real diagnosis, property, civil society or body business (property agent, expert, surveyor, property dealer, property negotiator, lawyer, etc.).
These occur during the construction period or within following warranty period.In addition to turnkey contract / construction contract purchaser may, however, also a normal sales contract for already completed (z. B. Old) or unfinished objects (prefabricated house) purchase of developer, by buyer to take the completion at his own expense and risk.
Knowledge of law, finance and taxation are required to practice lawfully rental investment and optimal, including tax level (error reporting income from property, land wrong deficit) and legislative (law of tenant, the landlord obligations, etc.). The prices are set freely between buyers and sellers tend to fluctuate over time depending on external factors (economic or political conditions in particular).
The analysis of behavior of markets over long periods, conducted by Ministry of housing, shows that price changes: a trend growth very close to that of average household income; is auto-correlated. Thus, a market is likely to decline in year N is already lowered in year N-1. Conversely, if prices rise during a year, there is a good chance they increase again next year. Multi-year periods of rising therefore succeed, after market downturns, to multi-year periods of low prices,
Its related to changes in interest mortgage rate, which reflects the tradeoffs between property and fixed income investments. Its correlated to equity markets. Periods of stock market crashes do not coincide with a particular behavior of housing prices. It's related to size of housing stock. Prices also depend on "irrational" difficult to measure variables such as weight beliefs, opportunities for excitement, etc.The speculative dimension of housing market may have an impact on prices, when it leads to formation of property bubble, the importance of which can be as large as that of financial bubbles and in some cases be combined with a financial bubble or in other cases be due to a global financial meltdown.
In addition to cyclical effects, the characteristics of property have an influence on its price. These may be intrinsic to property (ease of access and management, comfort, isolation, exposure, aesthetic, decay, loads and stresses, busy or free space), sentimental items (heirlooms). Rare phenomena may possibly be created by administrative constraints construction.
The comparison unit price of property is usually the price per square meter (or per square foot in some Anglo-Saxon countries). For income properties, we use multiples of earnings and other related measures (discount rate). Finally, units highly variable comparison are also used depending on the type of property (cubic meter meter frontage, price room or apartment, etc.).
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