About This Chapter
Real Estate Investments - Chapter Summary
Fun lessons in this chapter provide in-depth explanations of investments, appreciation, depreciation, loss and acquisition as related to real estate. Review important definitions, calculations, examples and more. When finished with this chapter, you should be able to do the following:
- Describe advantages and disadvantages of real estate investment
- Define and share an example of return on investment
- Calculate property appreciation
- Explain the importance of and list types of property depreciation
- Discuss the rules of tax shelters and passive activity loss
- Exhibit an understanding of investment analysis for property acquisition
This chapter's flexibility lets you review the lessons in any order, visit as often as you'd like and access all materials anytime via your chosen computer or mobile device. You also have the freedom to take multiple-choice quizzes before, during or after reviewing the lessons. At anytime during your study process, feel free to send questions to our subject-matter experts that can help you clarify any lesson topics you don't fully comprehend. When ready, check your understanding of the entire chapter by taking our practice exam.
1. Real Estate Investment: Types, Advantages & Disadvantages
In this lesson, we will explore different kinds of real estate investment properties. These types of properties include residential rental properties, commercial rental properties and 'flip' properties.
2. Return on Investment: Definition, Formula & Example
Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.
3. Property Appreciation: Definition, Calculation & Example
In this lesson we will look at what property appreciation is and how real estate professionals as well as homeowners can estimate the value of a property at a certain point in the future based on historical market information.
4. Property Depreciation: Definition, Importance & Types
This lesson defines depreciation as it applies to real estate property valuation. We will cover the different types of obsolescence that are factors in depreciation.
5. Tax Shelters & Passive Activity Loss: Definition & Rules
In this lesson, you will learn about the tax benefits of real estate. We will cover the definitions of tax shelters and passive activity losses. Understanding the rules of these topics can help a real estate investor become more profitable.
6. Investment Analysis for Property Acquisition
In this lesson, we will learn about information analysis. This skill involves collecting appropriate data on a property and determining its operating and financing expenses.
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Other chapters within the Indiana Real Estate Broker Exam Study Guide course
- Introduction to Real Property
- Public & Private Land-Use Control
- Estate Ownership, Rights & Interest
- Deeds & Property Transfers
- Property Titles
- Property Value & Appraisal
- Introduction to Real Estate Contracts
- Real Estate Agencies & Agency Relationships
- Listing Agreements & Property Management
- Fair Housing & Consumer Protection
- Risk Management in Real Estate
- Property Disclosures
- Introduction to Real Estate Financing
- Real Estate Lender Requirements
- Federal Real Estate Financing Regulations
- Closing & Settlement Real Estate Transactions
- Indiana Real Estate Commission & Licensing
- Indiana Real Estate Law
- Real Estate Business Procedures