Key ideas and principles
On the value of property
Whatever your interest in property, whether you:
- own a house or an apartment,
- want to know a little more about property
- want to be an investor in real estate, or
- want a job in the industry,
this week, you have started a journey of discovery that has helped you better understand the impact that property has on a nation’s and your own wealth. You have started to gain an understanding of professional terminology and started to develop an appreciation of how to consider property for wealth creation.
The first question explored was whether house prices always rise – but unfortunately they may not and in some countries they even go down. We spoke about inflation and how nominal price increases are reduced by inflation – to come up with real price increases. We considered some professional terminology; allowing you to put together a glossary of terms. Then we briefly looked at the effect of interest rates and how paying interest has an effect on overall wealth gains.
The last task of this week was looking at working within the real estate industry, exploring jobs and broad salary ranges within the profession.
So where to next week?
We will continue to work on the big questions:
- What gives property it’s value?
- What influences the value of land?
- What are some of the characteristics or attributes of land?
- What impact does zoning, have on the value of land?
- What legal and statutory authorities have rights and privileges over land that you might own?
Reflect on the following questions as a form of self-assessment. If you have some problems answering the questions, feel free to review the content and then attempt the question again.
- What is “real estate”?
- How important is real estate to our economy?
- Identify some of the careers in the real estate industry that you might be interested in.
- Why might purchasers pay more for a property than its “market price”?
Collaborate with your fellow students to help develop answers to these questions, by posting in the Comments area. You could go a step further, and develop questions for each other.
Whether you post or not, remember to click on the pink “Mark as complete” circle when you have worked through the task.
© Deakin University