Behavioral Finance

ratio bewteen credit amount to the market value from a real estate. The ratio indicates how much credit one receives in terms of the value of a property.

(credit amount / market value) x 100 = LTV

benefit from value methods through low interest rates, per example with DCF or net income value.

According to IFRS (international financial reporting standards) Real estate companies have to balance their portfolio with DCF or net income value. Furthermore, they have to estimate their real estate portfolio every year. in a economic environment with low interest rates, the value of their real estate will increase - therefore revaluation gains. 

in German "Schneeballsystem". older Investors receive their returns through the new cash from newer investors.  

In an efficient market, the price of a company is equal to his value.