Real Estate Economics: Amortization

This lecture covers the concept of financial amortization, which involves the gradual repayment of debt over time. It explains how financial amortization affects the value of real estate funds and the investor's financial situation. The lecture also discusses the impact of financial amortization on the composition of financing and the weighted average cost of capital. Additionally, it explores typical amortization rates in Switzerland, the total mortgage debt in the country, and the depreciation of physical assets. The lecture concludes by examining accounting amortization and summarizing the key concepts discussed.