Real estate investment : a capital market approach

This text deals with creating and adding value through the effective management of property assets. It aims to raise the level of understanding of financial and economic principles within the property profession. Periodic worldwide economic turmoil over the last few decades has created an environment in which the degree of risk of investment assets is now an important factor in their evaluation. Real Estate A Capital Market Approach is the first text to examine the effect of such changes on real estate markets, taking an in-depth look at three major areas of financial and economic importance within the real estate * The time value of money and the valuation of cash flows * Risk and return in real estate * Portfolio management Real Estate A Capital Market Approach is aimed primarily at students on both undergraduate and postgraduate courses in property investment or finance and MBA real estate specialists. The text is also of interest to fund managers, property researchers and professional investment valuers. Contents Commonly used symbols Introduction Acknowledgements Part 1—The time value of money and the valuation of cash flows 1—Valuation and financial theory: bridging the gap 2—Valuing cash flows 3—Simple freehold valuation models 4—Simple leasehold models 5—Mortgages and amortisation 6—The term structure of interest rates 7—Valuations and prices 8—Investment decision techniques Part 2—Risk and return in real estate 9—Distributional characteristics of real estate returns 10—Risk, return and diversification 11—Constructing property portfolios 12—Valuation smoothing Part 3—Portfolio management 13—The efficiency of the property market 14—Hedging against inflation 15—Developing a portfolio strategy 16—Performance measurement 17—Quantitative techniques 18—Some unanswered questions Bibliography Index