Year: 2024
Type: article
Abstract: The article discusses the possibilities of using discounted estimates for investment analysis. The relevance of the research topic is due to the fact that real estate investments are traditionally considered as one of the most reliable ways to invest funds. At the same time, at any level of decision-making, it is necessary to use reliable and fairly simple tools. This will allow the investor, if there are alternatives, to choose the investment object in favor of the most acceptable option. Therefore, as part of the research objectives, the key features of investing in real estate were considered, which determine the possibilities and limitations in the application of indicators for evaluating the effectiveness of investments. The emphasis is on the use of discounted estimates. They reflect changes in the time value of an asset and the long-term nature of real estate investments. The most acceptable options for choosing the discount rate used to evaluate real estate investments are considered. It is shown that the use of decision-making criteria based on discounted estimates can be available to a wide range of investors. It is possible that they do not have highly professional investment skills, mainly in the residential real estate segment. Possible interpretations of the use of indicators based on discounted estimates in relation to real estate are given.
Source: Baikal Research Journal
Authors: Boris Bedin, Natalya Kovalevskaya
Institution: Baikal State University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4411048868