Last module we started exploring the world of real estate in terms of costs of residential properties and whether to rent or buy. This module, assume we want to do both by investing in real estate: buy a residential property with the goal of renting it out. Our tasks in this module involve simplified versions of the real-world calculations involved in this (we treat interests and taxes in a much simpler way that real banks and governments would). Such simplification allows us to examine the effects of initial values in the results of a long, iterative calculation. Looking at the numbers grow also forces us to reflect upon things like inflation and risk.
This module will help you do the following:
A news article will contextualize us to the module.
In earlier modules, we worked with stock prices and tried to figure out tendencies to estimate what might happen in the future. For real estate, one dominant factor are the interest rates since they affect the housing market quite a bit. Take a look at Bank of Canada interest rates and write a paragraph or two of how which data would you examine to determine whether to purchase a residence with the purpose of renting it out would be a good idea just now.
After this module, you should be familiar with the following concepts:
Remember that you can always look concepts up in the glossary. Should anything be missing or insufficient, please report it.