Fall 2005 REAE 5311 Real Estate Analysis
Announcements:
Review materials for real estate analysis
Real Estate Analysis Project Information and Data
GIS Related Links
The link to the two GIS site selection practice files (pizza restaurant and campaign headquarters) is: http://magellan.uta.edu/website/download/
UTA GIS Projects for REAE: http://libraries.uta.edu/gis/imsspecial.htm
UTA GIS Project Data and GIS Viewer: http://magellan.uta.edu/website/reaemls/reaemls/viewer.htm (password required)
ArcGIS website (ESRI): http://www.esri.com/ (free trial version)
MapInfo website: http://extranet.mapinfo.com/products/products_index.cfm?productcategoryid=1
MapPoint website: http://www.microsoft.com/mappoint
Maptitude GIS software website: http://www.caliper.com/maptovu.htm
Relevant Articles:
Arlington Star Telegram
AST 1/25/03 C1 Foreclosure postings most in 8 years (.PDF)
AST 1/24/03 C1 Arlington survey has some seeing positives (.PDF)
AST Avoiding (Costly) Closing-Table Surprises (.PDF)
Tierra Grande (Journal of the Real Estate Center at Texas A&M University)
TG 1/03 p. 2-5 Why Texans won't kill robin hood (.PDF)
TG 1/03 p. 13-19 Texas two-step: Looking back, moving forward (.PDF)
Interested in more real estate related articles? CLICK HERE THEN SCROLL DOWN
Relevant Links:
Anyone interested in a free report on the real estate industry? Checkout the Lend Lease Real Estate Investment (http://www.lendleaserei.com/) Emerging Trends in Real Estate 2003(http://www.lendleaserei.com/LLREI/freeform.nsf/Content/571774E730BBBEE685256C4C006A7235?OpenDocument).
Anyone interested in receiving weekly e-mail updates on the Texas real estate market? To subscribe go to http://recenter.tamu.edu
Home-Buyers Guide: (http://recenter.tamu.edu/pdf/1044.pdf)
Homeowner’s Guide: (http://recenter.tamu.edu/pdf/1415.pdf)
Landlords and Tenants Guide: (http://recenter.tamu.edu/pdf/866.pdf)
Texas Real Estate Sales and Broker Information: http://www.trec.state.tx.us/
Time Value of Money Review Problem Set Answers
TVM Review: Problem set 1 Answers:
1) 24,464.43
2) 25,093.31
3) 1,738.91
4) 4,755.19
5) 675,764.89
6) 14,381.74
TVM Review: Problem set 2 Answers:
1) 10% compounded semi-annually (1.05^2 = 1.1025; 1.0238^4 = 1.0984)
2) 19,236.15
3) 98,111.31
4) 5,575.46
5) 22,601.66
6) 15.94%
7) 6,357.56
TVM Review: Problem set 3 Answers:
1) ANN: 15 – 25,288.30 25-20,519.45 MO: 15-2,067.95 30-1614.72
2) 14,043.41
3) Yes, NPV = 10,850.30
4) 13.22%
5) PMT = 103,873.36
a. Balance end of year 5 equals 961,283.21
b. Balance end of year 15 equals 801,472.49
6) PV = 854,972.16
7) 79,612.63 + 220,436.31 = 300,048.94
8) PMT = 638.58 (724.26 – 638.58 = 85.68)
9) IRR = 16.2%; NPV = 1,306.20
10) 68,640.81
Problem Set 4:
1) a) 19,876.60 b) 1,903,479.15
2) 48,076.30 + 159,263.83 = 207,340.13
3) Investment 1 IRR = 9.57% Investment 2 IRR = 10.18% or 9.94% assuming annual compounding
4) N=60, I = 12%, Pmt = 657.56, FV= 88,000 then 657.56 (pmt) + 120.00 (taxes, insurance, maintenance) = $777.56 rent
5) $1,365.86
6) 8.5%
7) 12.14%
8) NPV = $209.94 IRR = 12.27%
9) a) 10.36% b) 4,378.29
10) 163,028.46
11) 1,294.88
12) 137,243.36
Underwriting Problem Answers:
Qualifying the Buyer Problem 1:
PI=$614.30 (n=260, i%=.10/12, PV=70,000, FV=0, solve for PMT)
MHE = $614.230+ $84+$21+$24=$743.30
TMD=$743.30+$380+$65=$1,188.30
SMI=$3,200+$240=$3,440
MDR= MHE/SMI = $743.30/$3,440=.2161 --> Make the loan
TDR=TMD/SMI=$1,188.30/$3,440=.3454 ---> Make the loan
Qualifying the Buyer Problem 2:
PI=$479.29
MHE=$479.29+$83+$36+$17=$615.29
TMD=$615.29+$200=$815.29
SMI=$26,000/12=$2,166.67
MDR=MHE/SMI=$615.29/$2,166.67=.284 --> Reject
TDR=TMD/SMI=$815.29/$2,166,67=.376--> Reject
Downloads:
Investment Problem Spreadsheet Example