Property restitutions as tools for valuation and analysis
in collaboration with Hans Lind BjÃ¶rn Karlsson
This report has been sponsored by the Real Estate Academy at the Division of Building and Real Estate political economy.
Stockholm 2004 ______________________________________________________
line No. 52 Building & Real Estate Economics Department of Infrastructure KTH
This project was started in identify to arse about an overview of opinionual problems, measurement problems, theories of determinants of yields, the use of yields in different contexts and how the actors on the Swedish market looked upon yields. Important 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 clear about how the specific terms be defined. - Operational clarity: There are measurement problems two concerning rental incomes, in operation(p) and 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 important(predicate) distinction is between using 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 operating 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 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 relate 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 get a full essay, order it on our website: Orderessay
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