Risk-oriented valuation of real estate property: Post calculation and risk analysis using complete financial plans and Monte Carlo Simulation Risikoorientierte Bewertung von Rendite-immobilien: Nachkalkulation und Risiko-analyse mittels Vollständiger Finanzpläne und Monte-Carlo-Simulation
Berens W, Sommer F, Welsing J (2016)
Publication Type: Journal article
Publication year: 2016
Journal
Journal Issue: 3
Abstract
This paper deals with how risk can be considered in investment decisions before buying real estate. The investment example by Berens/Hoffjan (1995) who used the Complete Financial Plan (Vollständiger Finanzplan) to value real estate is employed to analyze in a post calculation how deviations in a nominal-actual comparison of this special case can be explained. The results are implemented in a risk analysis of the investment using sensitivity analysis and Monte-Carlo-Simulation to outline possible variations of the decision criterion. It can be shown that the sale price at the end of the investment period has high impact on the return of the investment.
Involved external institutions
Germany (DE)How to cite
APA:
Berens, W., Sommer, F., & Welsing, J. (2016). Risk-oriented valuation of real estate property: Post calculation and risk analysis using complete financial plans and Monte Carlo Simulation Risikoorientierte Bewertung von Rendite-immobilien: Nachkalkulation und Risiko-analyse mittels Vollständiger Finanzpläne und Monte-Carlo-Simulation. Betriebswirtschaftliche Forschung und Praxis, 3.
MLA:
Berens, Wolfgang, Friedrich Sommer, and Judith Welsing. "Risk-oriented valuation of real estate property: Post calculation and risk analysis using complete financial plans and Monte Carlo Simulation Risikoorientierte Bewertung von Rendite-immobilien: Nachkalkulation und Risiko-analyse mittels Vollständiger Finanzpläne und Monte-Carlo-Simulation." Betriebswirtschaftliche Forschung und Praxis 3 (2016).
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