Real estate

upgrading to bigger and better homes. On the surface this would seem like a big boost for luxury home sales. But on careful examination, inheritance is actually a net negative for housing in general. Take this example of a typical family of elderly parents and two grown children.The parents will most likely own a home, as do the grown children who probably have families of their own. When the parents die, they will leave the home to the children along with whatever other assets remain. One of the children could take over the parents’home or else it will be sold. Both children may decide to sell all of their homes and take the money to purchase bigger residences.Any way you look at it, one additional unit of housing will enter the market after the parents die. This is an increase in supply without a corresponding increase in demand, which is a net negative for the housing market.

The transfer of wealth to the next generation by inheritance always means a net increase in housing supply and will never be a positive force in the real estate market.

Ex.1 Give Russian equivalents:

a source of housing demand; the huge wave of immigrants; a major cause; will continue far into the future; the children of the BabyBoomgeneration;togiveaccesstocapital;rightafterstarting their first jobs; to relish one’s freedom; until they decide to settle down and have families; partially; to inherit significant wealth; upgrading to bigger and better home; families of their own; one additional unit of housing will enter the market; an increase in supply without an increase in demand.

Ex.2 Give English equivalents:

ограниченный жилой фонд; создать свои семьи; в будущем составить большую часть спроса на недвижимость; сегодня нет ничего необычного в том, что; после окончания высшего учебного заведения; длительное время снимать жилье; повы-

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сить уровень жизни; на первый взгляд; большой стимул для продажи роскошных домов; недостаток (отрицательный фактор) для рынка жилья в целом; с какой стороны ни посмотреть на это; соответствующее увеличение спроса.

Ex.3 Answer the following questions:

1.Why did the huge wave of immigrants into the US during the 1990s cause real estate inflation?

2.Will this influx of immigration continue far into the future? Why?

3.What do people usually use the inherited wealth for?

4.Why is inheritance actually a net negative for the housing market in general?

Text C: MODERN MORTGAGE FINANCE

modest means – скромные (ограниченные) средства availability – доступность

securities – ценные бумаги

interest payment – уплата процентов broker – маклер, посредник, агент

loan origination – получение кредита, ссуды to originate – предоставлять ссуду, кредит mortgage loan – ссуда под недвижимость to conform to – соответствовать чему-либо business – сделка

borrower – заемщик, получатель ссуды mortgage borrower – заемщик по ипотеке holder – владелец, арендатор

conflict of interest(s) – конфликт интересов (ситуация, при которой интересы лица или фирмы не совпадают)

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The vast majority of people purchase homes by taking out a mortgage. Few have sufficient liquid capital to purchase a home with cash. Even for those who do have the money, it is often advantageous to use low-cost, tax-deductible mortgage financing to purchase a residence and deploy their cash into more productive uses. Mortgage financing has allowed anyone of modest means to become a homeowner. The availability and cost of credit is the single most important economic factor in the real estate market.

Investors in mortgage securities receive the interest payments from homeowners. Mortgage brokers receive commissions from the loan origination fees. Mortgage loans are typically originated by third party brokers who perform all of the paper work required to make mortgage conform to the requirements of the securities markets. Mortgage brokers receive fat fees for bringing in business. Unlike traditional bank financing, mortgage brokers have no need to worry about a borrower’s ability to pay; they only receive fees from a successful mortgage application. This separation of risk between mortgage brokers and mortgage holders creates a conflict of interests. It is in the interests of the mortgage broker to make the borrower look as good as possible to the finance market in order to make a successful loan, regardless of the borrower’s real credit status.

Ex.1 Give Russian equivalents:

sufficient liquid capital; anyone of modest means; to receive commissions; to make mortgages conform to the requirements of securities markets; unlike traditional bank financing; a borrower’s ability to pay; mortgage brokers and mortgage holders; the borrower’s real credit status.

Ex.2 Give English equivalents:

подавляющее большинство людей; воспользоваться недорогой, не облагаемой подоходным налогом ипотекой; раз-

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местить (использовать) наличные средства продуктивнее; ценные бумаги, обеспеченные закладными; оформить всю документацию; высокие комиссионные; совершить сделку; независимо от.

Ex.3 Answer the following questions:

1.Why do the majority of people prefer to buy homes by taking out a mortgage?

2.Isthereanydifferencebetweentraditionalbankandmortgage financing?

3.What creates a conflict of interest?

Additional exercise

1) Read the first paragraph of the text in exercise 4 quickly. Don’t fill in the gaps yet. Which heading below, А or В, do you think would match the paragraph?

А.Aview from а helicopter.

B.How the English live.

2)Match the following hеаdings to each of the paragraphs 2—5

A.Amaze of streets.

В.Ahidden artist in every Englishman.

C.Nо such number.

D.The nation of nest builders.

3)Read the following extracts from the text. Circle the words

that the underlined words refer to in each extract 1—3 below.

1.Our nеighbours were from Argentina. Their two little daughters were the nicest children I’ve ever seen.

2.We decided to put thе house up for sale. The price we set wasn’t high, so we soon found somebody interested in buying it.

3.She was born in the country and spent her childhood in a small quiet villаgе. Shе considered it the haррiеst period in her life. Тhat was thе rеаsоn whу she always dreamed of buying a small house and moving away from London.

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4) Read the following text. Five sentences have been removed from the text. Fill in gaps 1—5 with the missing sentences from A-F. There is one extra sentence that won’t fit any gaps.

(1)If you look from а helicopter at any English town you will see that the residential areas соnsist almost entirely of rows of small boxes, еaсh with its own little patch of green. 1__. The principle, however, will be clear: the English all want to live in their own private houses with their own private gаrdens.

(2)What you cannot see from your helicopter, you will learn as soonasyoutrytovisitanEnglishhome.2__.Somehumoristsclaim thisistheresultof‘aconspiracytomisleadforeigners’,pointingout that our streets are never straight, every time a street bends, it is given a different name, there are at least 60 confusing synonyms for ‘street’and the numbering of the houses is hopelessly illogical.

(3)The house numbers are at least as well camouflaged as the street names. 3__. One taxi-driver explained: ‘An Englishman’s home is his castle, right? We can’t actually have massive walls around it, but we can make it difficult to get to.’

(4)The Englishman’s home is much more than just his castle; it is also his identity and his prime obsession. 4__. Thе mania for home improvementsiswidespread.Researchshowsthatonly2%ofEnglish males and 12 % of females have never done any Do-It-Yourself.

(5)Working on home improvements is an орроrtunitу tо exercise our creative talents. 5__. Although it may sometimes be an economic necessity, we see the arrangement, furnishing and our homes as an expression of our unique personal taste.

A.You may have its address and a map, but you will have great difficulty in finding the house you are looking for.

B.Or at least that’s how we like to think of it.

C.This is an unwritten rule of home ownership and the moving-in ritual.

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D.They are either hidden, or even not there at all.

E.In better-off areas, these boxes will be further apart, and the green patches attached to them will be larger.

F.This is why a house is not something you just passively ‘have’, it is something you constantly ‘work on’.

Episode 2

A real-estate office in Riverdale. Richard and Marilyn are speakingabouthomeswithVirginiaMartinelli,areal-estateagent.

Virginia: I remember your parents’first house very well. It was on SpringAvenue, near the park.

Richard: I grew up in that house.

Virginia: I’ve been friendly with the Stewart family for a long time, so It’s my pleasure to help you find a house now.

Richard: Well, we’re not sure we can afford one. Marilyn: But we’d like to find out about the possibilities.

Virginia:That’sagoodidea.IloveyourhouseonLindenStreet. I sold your father that house seventeen years ago.

Marilyn: Really?

Richard: Yes, Mom was pregnant with Robbie then, and they needed the extra room.

Virginia: I hear you’re expecting a baby, Mrs.Stewart. Marilyn: Mmm-hmm. So we will be needing more room. Virginia: Oh, so you don’t need something immediately? Richard: No. But in five or six months...

Marilyn:And time passes so quickly.

Virginia: Yes, it does. Well, when you called, you gave me enough information about your salaries and your savings. So I have a good idea about your financial situation. Let me show you some pictures of houses.

Marilyn: With two bedrooms?

Virginia: Yes, I think I can show you some. Of course, they won’t be in Riverdale.The cost of housing’s too high for you here.

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Richard: I haven’t thought about living anywhere else. We’ve always lived in this area.

Marilyn: Where should we look for a house, Mrs. Martinelli? Virginia: Well, we have an office in Mount Kisco. It’s a lovely area, and it’s only about an hour’s drive from here. Here I have a book with photos of some homes in that area. Now, let’s see. This

is a lovely two-bedroom house in your price range. Marilyn: It’s pretty, but I prefer a two-story home. Richard: I do, too. I don’t care for a ranch type.

Virginia: OK. Oh, this is a wonderful house. I know it well. I sold it to the present owners.

Richard: It looks wonderful.

Virginia: This is a two-bedroom, two-bath house. It has a full basement,anditisonahalf-acrelot.Youcanprobablyaffordthisone.

Marilyn: I like this house. Richard: So do I.

Virginia:And the price is right. Would you like to go see it? Richard: Yes. We’re planning to talk to someone at the bank

next week. Perhaps we could see the house this weekend. Virginia: If someone doesn’t buy it before then. But let’s keep

looking. Just to get an idea of some other possibilities. Richard: This is very helpful, Mrs. Martinelli.

Virginia: Here. This is a wonderful example of Spanish-style architecture.

Richard: Oh, I love the roof tiles on a Spanish-style house. Marilyn: It looks like the houses in Hollywood.

Virginia: It’s interesting. A house like this in Riverdale costs double the price. Oh my! Here’s a real buy. It’s a bargain. This house just came on the market.

Marilyn: It’s quite lovely. Is it a two-bedroom house? Virginia: No. It has three bedrooms and three baths. I know

the house. It has a brand new kitchen. And a living room with a twelve-foot ceiling.And there’s a two-car garage.

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Richard: Then why don’t we go and look at this house, too? Virginia: It’s a good investment.

Richard: Thank you, Mrs. Martinelli. Marilyn: Thanks so much.

Virginia: My pleasure. Give my best to your parents. Richard: Thanks, Mrs. Martinelli, I’ll give them your regards. Marilyn: We really appreciate your advice.

Virginia: I do think you should go and see the houses and talk to the bank. Let me give you some information sheets about the houses. They’re both very good buys.

Richard: Well, thanks so much for your help and your time, Mrs. Martinelli. We’ve got a lot to talk about.

1.Completethefollowingparagraph.Choosethecorrectword.

When Richard was born, Philip and Ellen bought a small, two- (story/stories) house with two (bedroom/bedrooms). Philip and Ellen were both working, and they were able to afford the house. They had a thirty (year/years) mortgage. They lived in that house for thirteen (year/years), until Robbie was born.

Unit III: BUYING A HOME

As you come in through the front door, you find yourself in а large hall with an open fireplace, which is unusual. One of the doors on the right of the hall leads into the living room. This room faces south, so it’s very sunny, and it has a lovely view of the whole valley.

The furniture has been chosen to match the style of the house, so there’s a lot of leather and dark, heavy wood. Next to this room there’s the dining room which has French windows leading onto а small patio.

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Also on the ground floor there is а study, kitchen and utility room.Awide staircase takes you to the first floor, where there are five bedrooms. The largest is about 25 х 20, a really vast room which looks out onto the garden.

The house is in 2.5 acres of land, and there is a green house, а shed, a swimming-pool and a tennis court.

It’s a beautiful place to be at any time of year. In winter it’s warm and cosy and in summer there’s so much to do outside.

1)The description is in five paragraphs. What is the purpose of each one?

2)Go through the text again and underline like this _______

what is factual description and like this _ _ _ _ _ _what is personal opinion. Sometimes the same sentence may be part fact and part opinion.

3)Box like this □ all the prepositions (and prepositional phrases) of place.

4)How many different rooms are mentioned?

a.What do you do in each room?

b.Are there any rooms not mentioned?

5)Circle like this ○ any words or expressions that you think are special to the description of a house.

6)Now write a description of а house or a flat. Include the following:

-facts and physical description;

-your impressions and opinions;

-a description of some of the rooms.

Text A: BUYING REAL ESTATE ABROAD

either …or – или…или

to retire – выходить на пенсию to involve – включать

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reliable – надежный

asset – имущество; средства; капитал to diversify – разнообразить

investment portfolio – портфель ценных бумаг acquisition – приобретение

despite – несмотря на

fairly – достаточно, довольно

rating – отнесение к классу, разряду или категории; оценка appeal – привлекательность, притягательность

inherent – неотъемлемый, присущий assessment – оценка

array of – ряд чего-либо indirectly – косвенно

significant – значительный, существенный impact – влияние, воздействие

to compare – сравнивать

to be superior to – превосходить; быть выше (чего-либо) on par with – наравне с…; на одном уровне с…

to be inferior to – уступать кому-л (в чем-либо) comprehensive – всесторонний; исчерпывающий; обстоятельный return – прибыль

evaluation – оценка

with regard to – относительно; в отношении; что касается particular – определенный

additional – дополнительный, добавочный original – первоначальный

to incur – потерпеть убытки managerial – управленческий

to rate – классифицировать, устанавливать категорию median – срединный

moderate – средний; небольшой unacceptably – неприемлемо

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