Real Estate Investment: Types & Options

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Questions and Answers

An investor is considering purchasing a property to rent out. Which of the following property types would fall under the 'residential' real estate category?

  • A multi-family apartment building intended for tenants. (correct)
  • A vacant lot intended for future development.
  • A retail store location in a commercial district.
  • A manufacturing warehouse used for storing goods.

A corporation is looking to invest in income-generating properties. Which type of real estate investment aligns with the business's goal?

  • Residential apartments to be rented out to tenants.
  • Industrial warehouses for storing raw materials.
  • Commercial buildings for retail stores and offices. (correct)
  • Vacant land for future agricultural development.

A real estate investor wants to generate revenue not only from rent but also from service fees. Which type of real estate investment would be most suitable?

  • A commercial office building.
  • A residential condominium complex.
  • An industrial property such as a car wash. (correct)
  • A plot of vacant land in a rural area.

An investor wants to purchase a real estate property with the intention of earning a return through rental income and potential future sale. Which type of real estate aligns with this investment strategy?

<p>A residential property, such as a building with apartment units. (A)</p> Signup and view all the answers

An investor is looking for a tangible or hard asset investment. Which of the following options best fits this description?

<p>A real estate property (C)</p> Signup and view all the answers

What distinguishes real estate development from other forms of real estate investing?

<p>It involves improving realty property. (B)</p> Signup and view all the answers

Which of the following is the best description of 'Real Estate'?

<p>Physical property, land, and buildings including rights above and below ground. (B)</p> Signup and view all the answers

Why is real estate considered an asset form with 'limited liquidity'?

<p>Real estate transactions involve complex and lengthy processes. (C)</p> Signup and view all the answers

Which of the following is a unique characteristic associated with industrial real estate investments?

<p>They often have significant fees and service revenue streams. (B)</p> Signup and view all the answers

An investor is interested in purchasing land for agricultural purposes. Which of the four main categories of real estate investment does this fall under?

<p>Land (B)</p> Signup and view all the answers

An investor seeks to purchase real estate for business operations instead of residential purposes. Which type of real estate investment aligns with their objective?

<p>Commercial (B)</p> Signup and view all the answers

What is property?

<p>A tangible or hard asset investment. (D)</p> Signup and view all the answers

What is the best investment option for the return of investment in the Philippines?

<p>Property (B)</p> Signup and view all the answers

In what way would the owner of a corporation's share of stock not make money thru returns?

<p>Royalties (B)</p> Signup and view all the answers

If demand for real estate continues, what situation are we likely to see?

<p>Rising condominiums (C)</p> Signup and view all the answers

Flashcards

Real Estate

Physical property including land, buildings, air rights, and underground rights, along with natural resources such as water, vegetation, and animals.

Real Estate Investing

Investing involves buying, managing, and selling real estate for profit, often including property improvement projects.

Residential Real Estate

Properties intended for residential use, like single-family homes, condos, and apartments, that provide rental income.

Commercial Real Estate

Properties used for business purposes, such as hotels, malls, restaurants, and shopping centers, typically with higher rents.

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Industrial Real Estate

Properties used for industrial purposes, such as warehouses, storage units, and car washes, which generate sales and service revenue.

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Land Real Estate

Land that is either developed or undeveloped, including farms, ranches, and vacant lots.

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Property

A tangible or hard asset investment that is very appealing. Purchase of properties like real estate, building, and land to earn for the return of investment through rental income, and future sale of properties

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Study Notes

  • This is a module on the types of investments with a focus on property
  • This is Quarter 4 – Module 8

Republic Act 8293, Section 176

  • States that no copyright shall subsist in any work of the Government of the Philippines without prior approval.
  • The agency or office may impose royalties as a condition for exploitation.
  • Borrowed materials in the module are owned by their copyright holders and every effort has been exerted to seek permission for their use.

Expectations

  • Define property and real estate.
  • Enumerate and identify investment options in Real Estate, with four main categories.

Recap

  • Stock certificates are evidence of stock ownership.
  • Stockholders receive dividends or capital gains.

Property

  • Property is a tangible or hard asset investment, purchase of properties yields return through rental income and future sales.
  • Real estate market in the Philippines is resilient, with rising condominiums, subdivisions, urbanization, and a growing middle class.
  • Investing in Real Estate is a safe option, despite slow growth in some sectors due to the pandemic such as BPO, OFW remittances and foreign investors.

What is Real Estate?

  • Real estate includes physical property like land and buildings, including air and underground rights
  • Real estate investing involves purchase, ownership, rental, management, and sale of real estate for profit.
  • Real estate development is a sub-specialty focused on improving realty property.
  • Real estate is an asset form with limited liquidity.

Four Main Categories of Real Estate Investment

  • Residential properties like rental homes, which can be single-family homes, condominiums, apartments, etc.
  • Commercial properties used for business purposes, such as commercially-owned apartment buildings, retail stores, hotels, malls, restaurants, and shopping centers.
  • Industrial real estate including warehouses, storage units, and car washes, which can have fees and service revenue streams.
  • Land real estate, including developed and undeveloped lots like farms, ranches, and vacant land.

Wrap-Up

  • Property is a tangible or hard asset investment that earns through rental income and future sale.
  • The four main categories are residential, commercial, industrial, and land.

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