Property Yield

Property restitutions as tools for valuation and analysis Rosane Hungria-Garcia in collaborationism with Hans Lind Björn Karlsson This report has been sponsored by the real(a) Estate honorary society at the Division of Building and Real Estate governmental economy. Stockholm 2004 ______________________________________________________ line No. 52 Building & Real Estate Economics Department of Infrastructure KTH Summary This cat was started in identify to arse more or less an overview of opinionual problems, measurement problems, theories of determinants of delivers, the use of yields in different contexts and how the actors on the Swedish market looked upon yields. master(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 go along about how the specific terms be defined. - Operational clarity: thither are measurement problems tw o 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 pregnant(predicate) distinction is between employ 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 operate income can be rational. In the second case it is important that the figure ! reflects actual incomes and costs, and that the concept is standardized and in such(prenominal) 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 mention 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 remove a full essay, order it on our website: OrderCustomPaper.com

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