FINC 371 Final Exam (New Material) Questions & Answers 100% Correct!!
8 views 0 purchase
Course
FINC 371
Institution
FINC 371
Types of residential development: - ANSWER1. single family detached
2. single family attached
3. multifamily
4. manufactured homes
5. second homes
Single family detached houses: - ANSWER- most sought after by American families
- provides more privacy
- "elbow room"
- best resale value
...
FINC 371 Final Exam (New Material) Questions & Answers 100% Correct!!
Types of residential development: - ANSWER1. single family detached
2. single family attached
3. multifamily
4. manufactured homes
5. second homes
Single family detached houses: - ANSWER- most sought after by American families
- provides more privacy
- "elbow room"
- best resale value
Patio or zero-lot-line houses: - ANSWER- construction is from lot line to lot line
- outdoor living area in an interior garden court enclosed by the house
- smaller yard, but very private
- generally one story and L shaped and may have a side yard
Single family attached houses: - ANSWER- clustering requires less road frontage and shorter utility
lines
- lower development costs per unit
- higher density.. lower land costs
- less ecological impact
- reduced yard work
Types of single family attached homes: - ANSWER- town home: has own door, shares a wall(s), front
and rear yards, face street or common area
- plexes: contains two or more units in one building, shares characteristics of town home and single
family detached
- patio or zero-lot-line houses
Multifamily residences: - ANSWER- cheaper alternative
,- empty nesters, young couples, single person households
- no down payment
- allow you to live in certain areas you couldn't normally afford
- no maintenance/yard work
- tenants can change residences easily
Pros of manufactured homes: - ANSWER- economies of scale and controlled environment in
construction
- affordable ($40 psf vs $90 for site built)
- trend towards owner occupied manufactured home subdivisions (rather than rental parks) has led
to better lending standards with 30 year FHA-insured loans
Cons of manufactured homes: - ANSWER- reputation
- typically decrease in value over time
- lenders treat as personal property: short term, high interest (10-15 year, 2% higher interest than
conventional loans)
- difficult to get zoning in a city
Second homes: - ANSWER- used for leisure time enjoyment
- access to amenities (mountains, beaches, golf, ski)
- occupied only part of the year
- "time shares"- sold to a number of buyers, each gets exclusive ownership for certain time period
Steps in market and feasibility analysis: - ANSWER1. delineation of the market area
2. analysis of recent economic trends in the local market area
3. determination of possible changes in demand
4. analysis of potential supply
Absorption rate: - ANSWERthe number of units that are being absorbed by the market
Delineation of the market area: - ANSWER- describe the housing submarket in which it will compete
- explain employment opportunities and commuting ranges
- in large city, must determine extent of employment within commuting ranges
, - public transportation can expand market area and commuting range
Analysis of recent economic trends in the local market area: - ANSWER- past and current trends
- vacancy rates, absorption rates, rent vs. own
Determination of future demand: - ANSWER- such as: employment, disposable income, population,
absorption rate, household characteristics
- what changes in economic base or in national/regional/local conditions will affect demand?
- pipeline of new development
- legislation changes
Condominiums and cooperatives: - ANSWER- ownership alternatives
- condo: owner holds title and shares ownership of common areas
- co-op: owner owns stock in co. that holds the title
Manufactured homes (mobile home): - ANSWER- single wide, double wide, triple wide
- assembled on site (24ft-36ft)
- bad reputation in the past, but design has been improved to resemble a conventional house and
improved construction
Analysis of future supply: - ANSWER- long gestation period so must analyze supply during that period
- examine developments in the pipeline
- determine what lies behind the trends
Financial feasibility: - ANSWERdetermine the probable success of the project (NPV and IRR)
Financial feasibility analysis: - ANSWER- analyze
- analyze sources of
- analyze timing of
Three most important factors in RE development:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller papersbyjol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.29. You're not tied to anything after your purchase.
