In the present study was developed an application of a model derived from Ellwood’s financial analysis and Real Options Analysis for estimating the risk-return in the residential real estate market of Naples. With the aim of reducing the uncertainty related to the determination of the risk and return for an property investment, starting of real estate investment layout derived from the Ellwood’s model, latter defined by financial income and costs related to the period of property availability, a risk analysis with Real Options Analysis has been implemented, in order to obtain the evolution of the investment value until the year in which it is convenient to recover the initial capital. This model has allowed to determine a capitalization rate for a general area of reference, that it can adapt on further effects of specific factors and intrinsic characteristics of the property being valued. It also allows to define uniquely the investment duration, in terms of availability period of property.

Del Giudice, V., Passeri, A., De Paola, P., & Torrieri, F. (2014). Estimation of risk-return for real estate investments by applying Ellwood’s Model and Real Options Analysis: An application to the residential real estate market of Naples. In Applied Mechanics and Materials (pp. 1570-1575). Trans Tech Publications Ltd [10.4028/www.scientific.net/AMM.651-653.1570].

Estimation of risk-return for real estate investments by applying Ellwood’s Model and Real Options Analysis: An application to the residential real estate market of Naples

PASSERI, Alfredo;
2014

Abstract

In the present study was developed an application of a model derived from Ellwood’s financial analysis and Real Options Analysis for estimating the risk-return in the residential real estate market of Naples. With the aim of reducing the uncertainty related to the determination of the risk and return for an property investment, starting of real estate investment layout derived from the Ellwood’s model, latter defined by financial income and costs related to the period of property availability, a risk analysis with Real Options Analysis has been implemented, in order to obtain the evolution of the investment value until the year in which it is convenient to recover the initial capital. This model has allowed to determine a capitalization rate for a general area of reference, that it can adapt on further effects of specific factors and intrinsic characteristics of the property being valued. It also allows to define uniquely the investment duration, in terms of availability period of property.
9783038352679
9783038352679
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11590/311139
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