·       Investment Objectives

o      A few examples

§       As a hedge against an inflationaryeconomic trend;

§       For the tax savingsgenerated by passive losses or depreciation deductions on improvements to the land;

§       As a means of providing regular income; and

§       To build a strong portfolio of propertiesfor resale at retirement or for other future needs

·       4 Forces Influent Real Estate Value

o      Physical: location, climate, topography, rivers and streams and the availability of water, public utilities, streets, highways, public transportation

o      Economic: employment, and wages and salary levels, interest rates, inflation, recession and availability of credit

o      Political: government controls on money and credit and zoning laws, building codes, subdivision control ordinances, fire regulations, taxation and city/county planning;

o      Social: rates of marriage, births, divorces and deaths, the rate of population growth and decline, public attitudes toward education, cultural activities, recreation, and lifestyle changes.