Real Estate Investment
REAL ESTATE AS A POPULAR INVESTMENT OPTION
SIMS
Chapter 1 INTRODUCTION Real estate is "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing." A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges. REITs can be classified as equity, mortgage, or a hybrid. The key statistics to examine in a REIT are net asset value (NAV), funds from operations (FFO), adjusted funds from operations (AFFO) and cash available for distribution (CAD). In the period from 2008 to this writing (2011), REITs face challenges from both a slowing United States economy and the late-2000s financial crisis, which depressed share values by 40 to 70 percent in some cases.
OBJECTIVES 1. To find out whether real estate is a good long term investment. 2. To determine how much is the investor expecting in return of investment.
LIMITATIONS/SCOPE 1. Age group is limited to only 25-55 years only. 2. Study limited to Pune and working people only. 3. Legal issues create a barrier for investment.
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REAL ESTATE AS A POPULAR INVESTMENT OPTION
SIMS
Chapter 2 REVIEW ON LITERATURE Vandana Singh, Komal did a research on “Prospects and Problems of Real Estate in India” in 2009 which attempted to reveal the
SIMS
Chapter 1 INTRODUCTION Real estate is "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing." A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges. REITs can be classified as equity, mortgage, or a hybrid. The key statistics to examine in a REIT are net asset value (NAV), funds from operations (FFO), adjusted funds from operations (AFFO) and cash available for distribution (CAD). In the period from 2008 to this writing (2011), REITs face challenges from both a slowing United States economy and the late-2000s financial crisis, which depressed share values by 40 to 70 percent in some cases.
OBJECTIVES 1. To find out whether real estate is a good long term investment. 2. To determine how much is the investor expecting in return of investment.
LIMITATIONS/SCOPE 1. Age group is limited to only 25-55 years only. 2. Study limited to Pune and working people only. 3. Legal issues create a barrier for investment.
Page | 1
REAL ESTATE AS A POPULAR INVESTMENT OPTION
SIMS
Chapter 2 REVIEW ON LITERATURE Vandana Singh, Komal did a research on “Prospects and Problems of Real Estate in India” in 2009 which attempted to reveal the