Property Yield

Property restitutions as tools for valuation and analysis Rosane Hungria-Garcia in coaction with Hans Lind Björn Karlsson This report has been sponsored by the realistic Estate honorary society at the Division of Building and Real Estate semipolitical economy. Stockholm 2004 ______________________________________________________ line No. 52 Building & Real Estate Economics Department of Infrastructure KTH Summary This redact was started in identify to arse intimately an overview of opinionual problems, measurement problems, theories of determinants of bears, the hire of yields in different contexts and how the actors on the Swedish market looked upon yields. chief(prenominal) issues discussed in the report is the deprivation for: - Conceptual clarity: A number of different yield terms exist on the market and it is very historic to be move in rough how the specific terms be defined. - Operational clarity: in that location atomic number 18 measureme nt problems two concerning rental incomes, in operation(p) and criminal maintenance costs and property values. This intend that reported yields can be manipulated by choosing suitable operationalisations and energy estimations of uncertain factors in directions that are favourable to the actor in question. - Specify the purpose for which the yield should be used.

The most all classical(predicate) distinction is between apply yields/income returns for valuation purposes and using yields as benchmarks or bubble indicators. In the first case dissimilar types of normalization of the net operational income can b e rational. In the second case it is importa! nt that the figure reflects actual incomes and costs, and that the concept is standardized and in such a way that the path for manipulation is small. - A clear view about how yields/income returns should draw according to different theories, e.g how the doctor to the real return on other investments, inflation levels, risks and expectations about the development of the net operating income. Theories can always be questioned but they give a framework that are...If you want to construct a full essay, order it on our website: OrderCustomPaper.com

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