Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/213311
Title: DETERMINANTS OF RETURN TO EQUITY IN REAL ESTATE INVESTMENT
Authors: LIM HOCK HAI
Keywords: Leverage
Tax Shelter
Price Appreciation
Optimum Holding Period
Profitabi1ity
Issue Date: 1992
Citation: LIM HOCK HAI (1992). DETERMINANTS OF RETURN TO EQUITY IN REAL ESTATE INVESTMENT. ScholarBank@NUS Repository.
Abstract: The real estate industry is highly volatile in nature. The existence of the real estate cycle is more than a mere truism. Through cyclical influences, the capital value movements of the residential properties fluctuated dramatically for the past twenty years. Therefore, price appreciation becomes very important in determining the return to equity in real estate investment. Based on the actual cash flow received by the investor of Ardmore Park, this is found to be true, in comparison with the other two determinants - leverage and tax shelter. In this study, price appreciation also appears to be the main determinant of the optimum holding period in real estate investment. Therefore, timing of a sale is the key to success in holding property for profitable resale. The analysis in the profitability of Ardmore Park reveals that the equity investor has reaped lucrative reward. It is solely compensation for the higher risk involved in such an investment.
URI: https://scholarbank.nus.edu.sg/handle/10635/213311
Appears in Collections:Bachelor's Theses

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