...Part 1) Considering the availability of Real Estate Investment Trusts in Singapore, we have an overview of S-REITs, with their valuations being fair and not compelling, however abundant liquidity should sustain interest in the sector. After a year of yield-compression, this has led to outperformance in share prices. While we believe the S-REITs are fairly valued at these levels, interest in the sector is likely to remain firm. This is because of the strong S$, a sustained low interest rate environment, and sector yields supported by yield spreads of 450bps above long bonds, which are still fairly decent. This could mean that capital allocations within the S-REITs sector are likely to remain high.[1] Below shows a mapping of the different sectors in Singapore REITs. [pic] As one investor chooses between public (REIT) versus private (direct property) investment in real estate, we consider their advantages and disadvantages. |Benefits |Disadvantages | |( REITs provide more liquidity than private market investment for|( REITs depend on management of the | |the average investor and the barrier of entry is much lower |company and maybe subjected to agency | |where any investor with a brokerage account can get REIT |costs. It does not give control and | |exposure. |ownership as compared to private ...
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...confusing, but the formula may be simply stated as follows: |[pic] | TUTORIAL: Investing 101: Types Of Investments But while the above equation seems easy enough to calculate, a number of variables including repair and maintenance expenses and methods of figuring leverage – the amount of money with interest borrowed to make the initial investment - come into play, which can affect ROI numbers. The article below explains the two methods by which ROI calculations are made: The Cost Method and the Out of Pocket Method The Cost Method The cost method calculates ROI by dividing the equity by all costs. As an example, assume a real estate property was bought for $100,000. After repairs and rehab of the property, which costs investors an additional $50,000, the property is then valued at $200,000, making the investors' equity position in the property 200,000 - (100,000 + 50,000) = $50,000. The cost method requires the dividing of the equity position by all the costs related to the purchase, repairs and rehab of the property. Try Currency Trading Risk-Free at FOREX.com [pic] ROI, in this instance, is .33 % - $50,000 divided by $150,000. The Out of Pocket Method The out of pocket method is preferred by real estate investors because of higher ROI results. Using the numbers from the example above, assume the same property was purchased for the same price, but this time the purchase...
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...Victoria Park 82/3 Defries Avenue Zetland NSW, 2017 Valuation Report Property Overview This spacious apartment is located within the Form building in Victoria Park. The current rental price is $640 per week with $2,560 bond. This property is on level 1 of the building with an open plan living and dining area that flows effortlessly out onto the oversized balcony. The apartment includes two double sized bedrooms each with built-in wardrobes and main with en-suite, one separate study area, two bathrooms, luxurious gourmet kitchen equipped with stainless steel appliances and Caesar stone bench tops, internal laundry and single secure undercover car space. The Victoria Park is equipped with gym, swimming pool, spa, barbeque area, and excellent security system and identification locking system. In this report, we used three main valuation approaches from the views of developers, investors and owner-occupiers to value the property. Location and Transportation Surrounded by natural beauty, Zetland is the ideal location to make a home. Two of Sydney’s finest golf courses, The Australian Golf Club and Moore Park Golf Club are a mere pitching wedge away. Nearby, the Sydney Cricket Ground and The Sydney Football Stadium cater for spectator needs, and Randwick racecourse is just down the road when people are in the mood to step out in the season’s latest fashion, or to have flutter each way on the fillies. Zetland has many schools surrounded such as James Cahill Pre School...
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...Jeans maker backs push on ethical factories * Jeans maker launches push on ethical factories * Rana Plaza collapse one year on * Death sentences deepen Bangladesh political hostility IN International Property * Cape Town — return of the trophy hunters * Bund and beyond — Shanghai’s riverfront market * Rise of London’s superhomes * Strong housing market puts Atlanta in a new light Sign up now FirstFT is our new essential daily email briefing of the best stories from across the web “If you brought a property in Dhanmondi [one of the most affluent residential areas in Dhaka] for 6.45m taka [$83,000] in 2005, that would have increased five or six times by now,” says Kazi Inam Ahmed, owner of Gemcon City, a new estate agency. In fact, Goldman Sachs has placed Bangladesh in the “next 11’” category after the Bric countries and its “Mint” (Mexico, Indonesia, Nigeria and Turkey) group as an emerging economy. Furthermore, from out of its bewildering, densely packed capital, properties are now starting to emerge that can match such aspirations. In the north of the city, modern blocks that would not look out of place in Hong Kong or Singapore surge upwards from 1980s-era family houses, long considered obsolete, where residents were once able to have gardens. In Navana Karatoya, an apartment block in the upmarket Baridarah area, Muhammad Miah, a plumber, installs a remote-controlled toilet in a property overlooking Gulshan...
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...Subject: Investment in real estate in New York City and factors Topic: Factors that influence investment in real estates in New York City Question: What are factors that provide the foreign investors to invest their money to real estate in New York City? Thesis: Diversification, big amount of money, exchange rate and quality of life are factors that influence foreigners to invest in real estate in New York City Abstract: With the economic crisis in the U.S., Americans are worried about investing in real estate while foreign investors feel the U.S. real estate market is very enthusiastic especially in New York City. According to an annual survey taken by the Association of Foreign Investors in Real Estate (AFIRE), the U.S. rose to the top of the real estate market world. AFIRE members hold more than $627 billion of global real estate, including $265 billion in the U.S. About 72 percent of the respondents planned to invest more money in the United States in 2011. Based on the foreign investors in real estate in the U.S., the research evaluated the factors that influence the foreign investment in U.S. real estate. Outline of the Paper 1. Introduction 2. Foreign Investors Taxation 3. When to Invest in Real Estate 4. Factors that Influence Investing in Real Estate in New York City * Big Amount of Money * Diversification * Exchange Rate * Quality of Life 5. Conclusion 6. List of References Introduction When the economy goes down...
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...Questions (Please limit all answers to a 150-word maximum. Point form answers are also accepted) What has driven your desire to take part in the Queen’s Real Estate Investment Conference? As a student interested in pursuing a career in finance, I believe it is important to gain exposure to the Canadian real estate market, as it is one of the largest sectors in the Canadian economy. The Queen’s Real Estate Investment Conference provides a unique opportunity to learn from industry professionals about investing in real estate, an experience I would benefit greatly from. I am excited to learn more about the Canadian real estate market, and I believe QRIC provides the unique opportunity to learn about real estate from an investor’s perspective....
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...1.1 BACKGROUND TO THE STUDY In a published report on Business Day by Chuka Uroko (2015), he explained that, Lagos, Abuja and Port Harcourt, Nigeria’ commercial, administrative and petroleum industry capitals respectively, are the top real estate investment destinations, and account for as high as 65 percent of all activities in this asset class, a report by the National Bureau of Statistics has revealed. The report indicated that Lagos has the greatest amount of real estate activities at 37 percent, followed by Abuja with 22 percent and Port Harcourt (Rivers State) with 6 percent, all covering 65 percent of real estate activities in the country. The trio, often regarded as Nigeria’s traditional cities, have seen increased tempo of activity in real estate development and much of the investments that have gone into real estate in the country in the last decade were concentrated in these cities. Nigeria’s has a burgeoning real estate sector, which by the GDP rebasing exercise in the country in April 2014, was discovered to be the fastest growing and sixth largest sector in the Nigerian economy, explaining the rising level of investment in the sector by both local and foreign investors. Foreign direct investment (FDI) is defined as “an investment in which a firm acquires a substantial controlling interest in a foreign firm (above 10 percent share) or sets up a subsidiary in a foreign country” (Chen, 2000). The International Monetary Fund adds “the investor’s purpose is to have an...
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...Minimization of Individual Tax Liability in Real Estate Investment In the world of investing, in general, one question is often the most challenging to answer. How does an investor grow their nest egg without losing the majority of their gain to the IRS as income tax? This question is even more challenging in the area of real estate where one’s tax liability is drastically increased by just the sale of one property. This simple transaction can increasing the investor’s ordinary income if the property is a short term investment (investment is less than 1 year) or increasing their capital gains for long term investments (over 1 year). Surprisingly, there are several easy ways to drastically reduce tax liabilities with some planning and basic knowledge of the IRS tax code. There are several tools at their disposal including utilizing Internal Revenue Service Section 1031 (1031 Exchange), using pretax income to form a self-directed IRA, or by forming a limited liability company (LLC) to protect their investment. The 1031 Exchange began as the idea that two individuals could trade one property for another and, as a result, there was no gain or loss realized. In 1979 the Internal Revenue Service (IRS) came to the realization that it was not as common to find someone who wanted to trade real property in this manner. As a result the IRS modified the Law allowing an individual or corporation to sell property and purchase another property as long as specific guidelines were met. This...
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...market value. d. investment value. 2. Investment value: a. is an objective estimate of a property’s worth as an investment. b. is the value of the property as an investment, and therefore is also the most probable selling price. c. from the present owner’s perspective sets the upper end of the range of possible transaction prices. d. is unique to the individual investor and need not be closely related to market value or most probable selling price. 3. The term market value, as generally employed by appraisers, means: a. the most probable price a property will bring in a competitive and open market under all conditions requisite to a fair sale. b. the most probable price that will result from arm’s-length bargaining between an equally informed buyer and seller. c. the highest price in terms of money that a property will bring if exposed to the market for a reasonable length of time. d. the price a prudent buyer would pay if fully informed of all relevant facts regarding the property. 4. The relationship between investment value and most probable selling price is: a. investment value will always exceed most probable selling price, at least by the amount of the transaction costs. b. most probable selling price will always exceed investment value, at least by the amount of transaction costs. c. investment value may be greater or less than most probable selling price, and the difference will approximate transaction costs. d. investment value need not be...
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...REVISED FEBRUARY 11, 2015 CRAIG FURFINE KEL553 Wildcat Capital Investors: Real Estate Private Equity “Okay. Now we’re even,” said the voice on the telephone. As he hung up the phone, James Tripp, managing director of Wildcat Capital Investors, thought back to that beautiful summer evening two years earlier when he was about to enter Ravinia Park to enjoy a performance of the Chicago Symphony with his friend, commercial real estate broker Katherine O’Brien. The sound of scraping metal had caught Tripp’s attention just in time for him to save O’Brien’s life—or so he liked to claim—by blocking an approaching bicyclist headed straight for O’Brien in a reckless attempt to cross the track ahead of an oncoming train. At the time Tripp had joked, “Now you owe me.” Referring to the opportunity to purchase a piece of commercial property before the sale became public knowledge, he continued, “How about showing me a great off-market deal some day?” Now, in September 2009, it seemed that O’Brien had indeed returned the favor. The opportunity O’Brien had just briefly outlined on the phone sounded perfect for Wildcat. Financial Commons was a 90,000-square-foot office property located in the Chicago suburb of Skokie. The building was 90 percent occupied and was being offered for what seemed like an incredible price of $10.4 million. Given the bleak commercial market environment at the time, such opportunities were few and far between. But Tripp knew there were many factors...
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...Indiabulls Real Estate Ltd. “Focus is the single most important virtue that will lead us to our goals.” Sameer Gehlaut, Chairman, Indiabulls Real Estate Ltd (2007) If the essence of the Indiabulls story were to be communicated in one word, the word would be “focus”. Indiabulls began its journey as an online brokerage start-up in the year 2000, and within a span of mere 10 years it has become India’s largest retail brokerage firm, and one of the largest non-banking financial institutions in India. The group has achieved unparalleled growth – successfully venturing into real estate business, and power sector as well. Incorporated as the real estate arm of Indiabulls Financial Services Ltd (IBFSL), and demerged in 2006, Indiabulls Real Estate Ltd (IREL) has been involved in project development and construction, project management, investment advisory and other allied services in the real estate space. Indiabulls Power, incorporated in 2007 as a 100% owned of subsidiary of IREL, was also soon demerged keeping in line IBREL’s strategy of demerging its non-core businesses in order to remain focused. One rationale behind the step was that all companies need to be independent in order to attain focus and to ensure that one balance sheet does not, in any manner, affect the other. The second reason was that the firm did not want to expose their real estate shareholders to project execution risks of the power sector. The third rationale was that power business would eventually be...
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...reading of the chapter by Pirounakis from Real Estate Economics, A Point-to-Point handbook. They are intended to test your understanding, critical thinking and writing ability as well as application to the current residential real estate market. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. List four mundane considerations buyers of residential real estate consider. Why is pricing real estate ‘guesswork with a little science added’? When the affordability index drops does property become more or less affordable? Explain your answer. Describe the nature of ‘derived and authentic demand’ in relation to Auckland residential houses. Why is supply of land said to be inelastic? How does the Proposed Auckland Unitary Plan (PAUP) aim to increase the elasticity (produce imperfect inelasticity) of land in the city? Why do some commentators question the meaningfulness of talking about a single housing market? Explain and give examples in your answer. How can real estate function as an asset and be compared with other types of assets like shares, bonds, and money for example? List three channels through which real estate interacts with the wider or macro economy. One characteristic of real estate is high transaction costs. Explain what this refers to. 1 Section B (30 possible marks, 2 for each calculation [10 in total] and 20 for the summary comments) Calculating investment performance, risk and uncertainty A property...
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...Real Estate Industry The laws of real property concern the many aspects of landownership, its use, and its conveyance. Its subjects include estates, ownership, leaseholds, contracts, mortgages, deeds, land titles, recording and more. According to J.P. Wiedemer and J. E. Goeters from their book Real Estate Investment, in real property law, an estate is an interest in land. It is the sum of property rights and/or things affixed to the land, which have a given duration of time (including infinity). An estate is concerned with the land; an ownership is concerned with people. Another definition of Real Estate, according to Dennis J. Mckenzie and Richard M. Betts from their book Essentials of real estate economics 2006 edition, is defined as land, that which is affixed to the land, that which is appurtenant to the land and that which is immovable by law. The ownership of real estate carries certain rights, known as the bundle of rights. The bundle includes the right to use, possess, exclude and dispose. These rights are not absolute; they can be legally modified by private restrictions and government regulations and laws. In short, real estate or real property is land and improvements and the rights associated with the ownership of same. One of the largest and most important investments that the average person makes is a house to live in. In past years, it was considered an acquisition of living accommodations and was expected to decline in value as it grew older and more outdated...
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...again, that’s what you call market volatility. Historically, the volatility of the stock market is roughly 20% a year and 5.8% a month, but volatility keeps on changing, so we go through periods of high volatility and low volatility. Analysts and experts have different opinions about what you should do in volatile markets, and how to scope with stock market volatility or the tendency for share prices rising and falling. Analysts. Justin Stewart, co-founder of Seven Investment Management says: “ Crashes happen. If you are a longer-term investor, you should look straight through them and remember the power of compounding dividends, or in cone arising on income.” Andrew Humphries, a director of St James Place Wealth Management, thinks that Diversification is very important and having a portfolio that is solely exposed to one asset class- be it equities, bond or property- is dangerous and all investors should ensure they hold an appropriate range of assets” Andrew Bell, the chief executive of Witan Investment trust advised: “ It is better to buy into fear and cheapness and sell into euphoria and high valuation, as long as you can endure the period before trends reverse. Investors should have this tattooed somewhere to prevent natural human psychology from making them do the opposite. Bill Mott, the manager of PSigma income, said “ in an uncertain world, investors should wait for the buying opportunities that volatile markets are certain to provide-but’ when the opportunities...
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...comes from the popular notion that a home should be viewed purely as an investment, the same way you would view a stock, bond, IRA, etc. There's some truth to that notion, but just as stocks, bonds and IRAs differ from one another, one's personal residence is a unique investment "instrument." Here a just a few of the characteristics that make home ownership unique: Owning a home affords a powerful way for you to leverage your capital. The purchase requires a relatively small down payment, yet your return is based on any increase in the total value of your home, amplifying even a seemingly modest rate of appreciation. Thanks to differences in the efficiency of the financial markets versus the real estate market, the purchase of a home offers you opportunities to add value that are not available to you when you purchase stocks or bonds. While you're competing against thousands of savvy investors in the financial markets, you may be competing against a relative handful of potential buyers for a given property. Combine the use of the Internet-based research tools and the services of an ERA real estate professional, and you have the power to be the buyer who finds the motivated seller with the attractively priced property, increasing the likelihood of equity appreciation from the day you move in. If you're an enterprising, creative buyer, put online information resources and the experience of an ERA real estate professional to work for you to find the 'diamond in the rough' that's...
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