Winter/Spring 1996

Illinois

Real Estate

Letter

"Weird Finance" offers a detailed discussion of a concept long used in the analysis of bonds. When the duration measure is applied to interest rate-sensitive securities, such as some mortgage-related instruments, the results can be downright weird, such as a positive relationship between interest rate and price movements known as negative duration.
"Rolling the Dice: Would Casinos Harm Illinois Home Values" raises questions regarding the impact that allowing land-based casinos in Illinois would have on home values; the authors cite results of a study from suburban Las Vegas in concluding that a casino constitutes a nuisance for nearby residential properties.
"Vacancy Management IV: Quality of Real Estate Services" explains how real estate managers who provide higher quality services should view income-maximizing activities in light of the higher operating costs that accompany better service quality.
"A Technical Analysis of the Quality of Real Estate Services" follows, with a detailed geographical presentation on the role quality plays in the market.
"To Pre(pay) or Not To Pre(pay): That is the Question" discusses the importance of mortgage loan interest in allowing a family to amass enough in qualifying expenses to itemize deductions when computing its federal income taxes.