Question

"Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn’t one prior and immediately increase the value of his investment. Which economic characteristic of real property is this?"

Answer 1

The answer is: Improvements

Step-by-step explanation:

Teal estate characteristics can be divided into two general categories: Economic and Physical.

Improvements falls under the economic category. Improvements include any work done on a land lot (e.g. leveling, building a fence, building a house or shopping mall, etc.) that increases the value of the land, and usually can also increase the value of the whole community.

Al improvements add value to the land, but not all improvements add value to the community, e.g. converting a lot into a waste dump lowers the value of the surrounding land.