TAILIEUCHUNG - Property Investment Analysis

Private investors may need to isolate their cash flows to debt , usually only a single mortgage, from the cash flows to equity, usually their savings. Private investors may need this information to record any shortfall between rent received and loan interest, for personal income tax measurement. | Ch 14 Property Investment Analysis Capital Budgeting Techniques Applied to Investments In Land And Buildings Analytical Ideas in Property Investment The standard concepts and techniques of capital budgeting analysis can be applied to property investment. Private investors may find it desirable to evaluate the equity cash flows separately from the property cash flows within an investment analysis. Cash Flow Concepts for Private Investors Private investors may need to isolate their cash flows to debt , usually only a single mortgage, from the cash flows to equity, usually their savings. Private investors may need this information to record any shortfall between rent received and loan interest, for personal income tax measurement. Two Styles of Property Investment Analysis Property cash flows - the standard concepts from previous chapters are applied- the property cash flows do not include financing flows. These flows are accounted for in the discount rate. Equity cash flows – financing cash flows are explicitly included in the cash flows. These flows are not accounted for in the discount rate. Both styles can employ cash flows on either a before, or, after-tax basis. Types of Property Decisions Slide 4 showed two types of property analysis: there are also three distinct types of property decisions:- Acquisition of an income-producing property (or an industrial property). Evaluation of premises to be used by business. Property development-- purchase and development of sites. Acquisition Of An Income-Producing Property There are three methods of evaluating the cash flow streams in such an investment:- Property cash flows before, and after, tax: example , and workbook . Equity cash flows before tax: example , and workbook Equity cash flows after tax: example and workbook Evaluation of Premises to Be Used By A Business There are three distinct types of decisions in this evaluation:- To purchase an industrial property for operations: Example and Workbook To lease or buy industrial property for operations: Example and Workbook Whether to sell and lease back a property for operations: Workbook . Property Development- Purchase and Development of Sites There are three phases to this decision:- The initial screening of the project: example , and workbook . Defining and forecasting the project cash flows: example and workbook . Defining and forecasting the equity cash flows: example and workbook . Property Investment- Summary Property investment analysis requires the standard set of techniques used for any capital budgeting decision. Some analyses require a distinction between the project cash flows and the equity cash flows to measure the tax positions of private investors. There are three types of commercial property decisions: acquisition of income producing property evaluation of owner occupied business premises development of real estate. The NPV is used for sound managerial decision making.

• Quỹ đầu tư
• Investment Analysis
• Property Investment Analysis
• project costs
• project investment
• project evaluation
• project management
• technical project management
• project management for small business
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks