CSM 204 Chapter 17 LectureOutline of Previous LectureI. Mutual FundII. Mutual Fund FactsIII. Types of Mutual FundsIV. Net Asset ValueV. Costs of Mutual FundsVI. Classification of Mutual FundsVII. Mutual Fund FamilyVIII. Deciding to Buy or Sell Mutual FundsIX. Mechanics of a Mutual Fund TransactionX. How to Select a Mutual FundXI. Advantages of Mutual FundsXII. Disadvantages of Mutual FundsXIII. Quiz 3-4Outline of Current LectureI. Types of Real Estate InvestmentsII. Homes as InvestmentsIII. Advantages of Real Estate InvestmentsIV. Disadvantages of Real Estate InvestmentsV. Investing in Precious Metals, Gems and CollectiblesVI. Quiz 3-5Current LectureChapter 17 – Investing in Real Estate and Other Investment AlternativesUNDEREPRESSENTED CHAPTERTypes of Real Estate InvestmentsDirectPrimary and Secondary ResidencesCommercial propertyUndeveloped landThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ForeclosuresIndirectReal estate syndicatesLimited partnershipsReal estate investment trustsBuys and sells just like a Mutual FundMortgagesParticipationHomes as InvestmentsPrimary ResidenceYou hold legal titlePlace to liveMortgage interest is tax deductibleUsually an inflation hedgeBeware of housing bubblesVacation homeTax advantageAdvantages of Real Estate InvestmentsPossible hedge against inflationEasy purchase on indirect ownershipLimited financial responsibility for indirect ownershipFinancial leveragePositive cash flowNo management concerns on indirect ownershipDisadvantages of Real Estate InvestmentsIlliquidityDeclining property valuesLack of diversificationLack of a tax shelterLong depreciation periodManagement problemsInvesting in Precious Metals, Gems and CollectiblesHedge against inflationSafe haven during political or economic upheavalsNeed a storage placeCan be riskyNot easy to turn to cashDifficult to appraiseQuiz 3-51. True2. Single family dwellings3. Your own home4. Illiquidity5.
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