| Issue |
SHS Web Conf.
Volume 61, 2019
Innovative Economic Symposium 2018 - Milestones and Trends of World Economy (IES2018)
|
|
|---|---|---|
| Article Number | 01011 | |
| Number of page(s) | 9 | |
| Section | Strategic Partnerships in International Trade | |
| DOI | https://doi.org/10.1051/shsconf/20196101011 | |
| Published online | 30 January 2019 | |
Real estate as an investment asset
University of Žilina, Faculty of Operation and Economics of Transport and Communications, Univerzitná 1, 01026 Žilina, Slovak Republic
* Corresponding author: krulicky@mail.vstecb.cz
The present text focuses on perceiving real estate property as an investment asset that generates a certain amount of revenue to its owner, assuming expected risk and the expected level of liquidity. The first step is to determine the open market value of the selected property, which represent the expected expenses of the investment costs incurred (taking into account other acquisition costs), then we determine the open market rent value, which is the expected return on the selected property, then identify possible business risk associated with the commercial use of real estate and finally, the liquidity of the entire investment is estimated. In conclusion, methods for evaluating investments are applied to assess the realization of the investment – acquisition of the selected real estate for commercial purposes, the estimated return time and the percentage of the return on investment is calculated of the paper.
Key words: Open market value / Investment evaluation methods / Investment triangle
© The Authors, published by EDP Sciences, 2019
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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