L2 Unit – 3 – Quiz

Which of the following is not one of the characteristics of the real estate market?

These allow investors to increase diversification in direct real estate holdings by investing in groups of real estate projects. Such as Real Estate Investment Trusts (REITs). These are

The_______is essentially value weighted and includes sub-indices grouped by real estate sector (apartment, industrial, office, and retail) and geographical region.

A ____________is a mortgage secured by a group of properties or a number of lots. Suppose a person owns ten rental houses; she may want a blanket mortgage on all ten homes, with one loan, one payment, and one lender

A property’s greatest potential market value is limited by the market value of the other, similar properties. This principle is known as

This principle observes that consistency in ownership of land and zoning or usage, tends to maximize value. The principle states that, “Land values tend to increase when adjacent lots are combined into single ownership and put to a single zoning or use.” This is

In the case of ________ the rate of interest varies according to market movements.

This REIT sector is fairly immune to recession, although they are largely dependent upon the financial health of the lessee which, in turn, relies on the medical reimbursements provided by the Government. This is

Diversifying a portfolio with Real Estate creates a hedge against ___________ and reduces ___________ by creating long-term income streams.

The minimum and maximum tenure of repayment for fixed scheme of home loan is ________

How is land different than other property assets?

_________is often used in property development, filling in the gap between construction loans and a developer’s equity investment

A_______ is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

What is the principal benchmark used to represent indirect investment in real estate. It is a real time market-cap
weighted index of all REITs actively traded on the New York Stock Exchange and American Stock Exchange.

Which is a legal document which confers a right on one person to use or occupy property belonging to another person
for a fixed or indefinite period of time? The consideration for this arrangement is called

How are the value movements attributed to changes in market conditions estimated?

The following data is available for a piece of property:
Asking price Rs. 8,00,000/-
Net income Rs. 80,000/-
Market yield 11%
What should be the value of the property according to capitalization approach?

_____________ is defined as the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

Real estate investment is done between the interactions of

For FDI in real estate In case of construction development projects, a minimum built-up area of _______

The following selection criteria is for which of the real estate index : (1) Companies must rank within the top 500 companies by average free-float market capitalization and aggregate turnover for the last six months. (2) The company should have reported a positive net worth. (3) The company should have an investable weight factor (IWF) of at least 10%. (4) The company should have a listing history of 6 months. A company, which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period. (5) The review will take place on a semi-annual basis.

Which of the following are not true about Equity Financing?
I) It gives the investor a share in the property because the money he lends to the company gets added to its capital
II) Profit sharing with the investors is one of the popular ways of repayment for equity finances
III) Lack of flexibility, transparency, and simplicity limits the appeal of equity financing
IV) It is one of the most difficult methods of financing investments in the real estate

For example, suppose that prior to buying an investment property, your long-term investments consist of the following:
Stocks Rs 1500000
Bonds Rs 500000
CDs Rs 500000
Total Rs 2500000
How much percent is covered in the lending investments ?

GIC Floating Scheme allows applicants to draw a maximum loan amount of ___________, against floating rate of interest.

For FDI The minimum capitalization norm shall be USD ______for a wholly owned subsidiary and USD ________ for joint ventures with Indian partner/s