Lecture
This lecture introduces the concept of consent to pay in real estate economics, where investors determine the maximum price they are willing to pay for a property based on alternative investment options. The relationship between land price and required rate of return is explored, showing how different investors with varying required rates of return have different consent to pay values. The lecture also covers the algebra behind calculating consent to pay, distinguishing between price (amount paid for a property) and value (maximum price an individual is willing to pay). The session concludes with a summary of the key concepts discussed and hints at further exploration of the topic.