Question

Describe how real estate investment objectives are set, how the features of real estate are analyzed, and what determines real estate value?

Answer 1

Investment in real estates are made for different types of objectives. they are as follows-

1 . Determination of investment horizon-investor needs to know whether the investment is intended to be long term or short term. Once the investor is position to meet his desire investment horizon, it would be appropriate to move forward.

2. After determination of investment horizon investors should evaluate real estate investment strategies about how different real estate investment opportunities that exist and whether they fit into your overall investment plan or not.

3. Asset diversification determination- some investors also want to seek diversification of portfolios because they are already invested into other asset classes like bonds as well as equity.

4. Investors also focus on on the intensity of generation of rental income through investment into real estate.

Real estates feature can be analysed through detailed analysis of various aspect of real estate investment which includes property analysis by accessing the original listing price and checking through property value estimates whether the price is appropriate or not. Then investors should determine a price range and and those property should be selected that fall into his price range with specified properties access the home in person and then decide the market value of property.

The value of real estate property is determined by how much the home would sale for, in the market under normal condition .this can include a number of external and internal characteristics that includes home condition room size, size and number of rooms , construction quality ,energy efficiency etc.

The value of the real estate is also dependent upon the twin factors of demand and supply as well as the location where the property is situated.

These factors must be undertaken in order to estimate market value of the real estate investment.