Quiz 1: The Nature of Real Estate and Real Estate Markets
The term Real Estate can be used in three fundamental ways: Real estate is commonly used to identify "tangible" assets of land and buildings, the "bundle" of rights that are associated with the associated with the ownership and use of the physical assets and finally the term real estate may be used when referring to the industry or business activities related to the acquisition, operation, and disposition of the physical assets.
Real estate can be defined as any tangible or intangible assets which can be owned and possessed for own consumption or for renting and investing purposes. Real estate is thus any property, land, or any other fixed assets which are owned for increasing the wealth of the person which appreciates its worth in future. Option "a" Rental market is a market which helps in determining the current operating rent in real estate sector. It helps an individual to safeguard himself from paying huge unexpected rent to tenants. Thus this option is not correct. Option "b" Housing market is a real estate market which helps the buyers to buy and the sellers to sell residential house under different schemes and payment plans. Thus housing market is a market place where there is sale of residential house by the immediate seller directly or through some broker or other third party for money in return between the seller and the buyer. Thus this option is not correct. Option "c" Capital market refers to the market in which financial instruments such as stocks, debenture, bonds and other commodities like gold silver copper etc are traded either over the stock exchange or off stock exchange. Option "b" User market is a market place in the real estate sector where the tenant negotiates on the rent price and on other terms and condition with the landlord to avail the house on rent. Thus this option is correct. Hence the correct option is user market.
In the US land ownership is divided primarily between the federal government 23% and the nonfederal rural areas 71%. The distribution among the various users is: Developed land 6%, Crop land 19%, Range land 21%, land 21%, and other 3%.