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George is a real estate investor; he has 100% ownership of several houses in the DFW area. What type of investments are the houses considered?

User Serlite
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1 Answer

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Final answer:

George's houses are tangible financial investments which can generate capital gains and rental income, along with offering nonfinancial returns like housing services.

Step-by-step explanation:

George's houses in the DFW area, which he has 100% ownership of, are considered tangible financial investments. They provide a rate of return through capital gains, which is the increase in the property's value over time, potentially offering a lucrative financial benefit upon sale. Furthermore, these investments can provide a nonfinancial return as well; if George were to utilize the properties, for example, by living in them or renting them out, they would provide housing services, which in the case of renting out, also provides rental income.

User Brian Bulkowski
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