12. Real Estate Finance and its Vulnerability to Crisis

Financial Markets (ECON 252)

Real Estate is the largest asset class and of nice significance for each people and institutional buyers. An array of financial and psychological elements influence actual property funding choices and the general public has altering concepts of actual property as a worthwhile funding. People’s demand to purchase a house by taking up long-term debt, referred to as a mortgage, is commonly tied with the general well being of the economic system and monetary markets. In recessions, dwelling shopping for tends to fall and the other holds in a powerful economic system. Commercial actual property, held not directly by the general public by partnerships and actual property funding trusts (REITs), is weak to related speculative exercise. The most up-to-date actual property growth illustrates the speculative nature of actual property, and its relation to monetary and financial crises.

00:00 – Chapter 1. Introduction
02:17 – Chapter 2. The Development of Commercial Real Estate Assets, from DPP to REIT
17:34 – Chapter 3. The Evolution of Mortgages and Government Regulatory Measures
30:06 – Chapter 4. The Math of Mortgages, Fannie Mae, and Freddie Mac
41:50 – Chapter 5. Understanding the Current Housing Boom: Comparing Los Angeles and Milwaukee
57:37 – Chapter 6. Domestic and International Real Estate Booms

Complete course supplies can be found on the Open Yale Courses web site: http://open.yale.edu/courses

This course was recorded in Spring 2008.

Real Estate