Real Estate and Financial Concepts

These flashcards cover key terms and concepts related to real estate, financial calculations, and investment principles as outlined in the lecture notes.

Industrial Properties

A sub-division of commercial property including manufacturing housing, production factories.

Agricultural Property

Land used for farming both plants and animals, located in peri-urban and rural areas.

Special Properties

Includes worship centers, recreation facilities, hospitals, and social halls.

Mixed-Use Properties

Combines residential, commercial, and sometimes industrial uses in one space.

Return on Investment (ROI)

The right to get back the purchase price at the end of ownership, commonly expressed as an annual percentage.

Capitalization

The process of converting an income stream into a single capital value.

Discounting

The process of converting future income receipts to a present value.

Geometric Sequence

A sequence where any term is obtained by multiplying or dividing a previous term by a constant called the common ratio.

Annuity

A series of equal payments made at regular intervals.

Present Value (PV)

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Future Value (FV)

The value of a current asset at a future date based on an assumed rate of growth.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Compound Interest

Interest on interest — the effect of compounding increases your total investment return.

Market Value

The price at which a property would sell in a competitive and open market.

Valuation

The process of estimating the worth of a property and its utility for a specific purpose.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Equity

The value of an ownership interest in property, calculated as the difference between the property's value and any liabilities.