Basics of Real Estate

What are the different types of real estate?

• Vacant land

• Residential

• Commercial

• Airbnb

What are the different investment methods?

• Buy to sell

• REITs

• Airbnb

• Buy to rent

How are real estate correlated with the overall market?

• Neutral

• Negative

• Positive

• Vertical

What are the tax benefits of real estate?

• No RPGT

• Interest expenses deductible

• Renovation cost deductible

• Advertising cost for first tenant deductible

What are the characteristics of real estate?

• Homogenous

• Transparent

• Liquid

• Durable

What are the factors that cause properties to appreciate?

• Demand push

• Cost pull

• Cost push

• Demand pull

Why is main reason real estate barrier of entry high?

• High transaction fees

• High maintenance fees

• High amount of down payment

• High income required

How is real estate different from unit trust or stock market?

• Heterogeneity

• High Leverage

• Illiquidity

• Stable