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Question:
1.Briefly explain with example, the concept of land Economies. (5 marks)
2.State 4 types of land ownership that been implemented in real estate industry in Malaysia. (4 marks)
3.Briefly explain the factor affecting the land value. (11 marks)
Answer:
1. Briefly explain with example, the concept of land Economies. (5 marks)
Concept of land economic is related to
a) ownership
b) land usage
c) characteristics of land
a) ownership
- inclusion in the land or property
- provide power to land owner to the maximum utilization of the land
- determination of land ownership is important for land value / market.
- Freehold
- Leasehold
- Rent
- Mortgage
- allow land owner to produce a maximum returns by time
- activity of the land owner on the land improve the economic value of the land.
- the land ownership is important for the future development of the land
- determination of land ownership is important for land value / market
c) characteristics of land
- immovable
- indestructible.
- permanent.
- passive factor of production because it cannot produce anything by itself.
- primary factor of production in every kind of production. We have to make use of land.
- limited in supply and impossible to increase the supply of land.
- gift of nature given to man free of cost.
2.State 4 types of land ownership that been implemented in real estate industry in Malaysia. (4 marks)
4 types of land ownership are as followed
- Free hold
- Lease hold
- Rent
- Mortgage.
3.Briefly explain the factor affecting the land value. (11 marks)
a) supply and demand - land value represents the measure of supply and demand forces acting on a insufficient source
b) location - land in urban areas has greater value compare to rural areas, distance from urban area increases, land values tend to decrease
c) population - the larger the populations associated with urban areas, the higher the land values
d) Land Usage - Zoning provides the overriding control on land use and the determination of where particular activities locate.
e) Activity - Land with most profitable activities able to justify the highest land value example like Central Business District.
f) Future development - The value of rural land is directly tied to its capabilities and potential related to future demand and opportunity for urban development.
