V11 Economic Feasibility
- Real estate market and financing - Economic model - Client counselling services
- Real estate market and financing - Economic model - Client counselling services
Fichier Détails
| Cartes-fiches | 11 |
|---|---|
| Langue | English |
| Catégorie | Gestion d'entreprise |
| Niveau | Université |
| Crée / Actualisé | 30.01.2020 / 30.01.2020 |
| Lien de web |
https://card2brain.ch/box/20200130_v11_economic_feasibility
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What specific costs are part of the investment costs?
- Land Cost
- Production cost
What has to be accounted for the gross yield?
Mention the typical percentage rates as well.
- Return of investment (3% Interest Rate for owners equity / 3% mortage rate "Hypotekarzinsen")
- Depreciation (Abschreibung) (0.5%)
- Management Cost (1.5%)
There are 3 different kinds of mortgage rates name them, name a pro / con and sort them according to the market share its used. And tell for whom it's suitable.
Fixed:
+ Low risk, predictable
- No profit if interest rates fall
-> Suitable for private individuals
Libor mortgage
+ Profit if interests falling
- Risk of increasing interest rates
-> Suitable for semi-professionals and professionals
Variable-rate mortgage:
- Non-Transparent
-> Suitable for professionals and short term financing
What is the typical depreciation period?
25-50 years
What are typical elements of Management Costs?
- Administration
- Maintanance
- Operating costs
- Risk premium
There are two different types of "rent" name them and explain.
- Economic rent: Required income
- Market rent: Possible income
Repetition: How can the production cost out of the building cost be estimated?
PC = BC / 0.9
How can be evaluated if I should buy a land for a building?
1. Calculate the Investment Cost = Production Cost + Land Cost
2. Calculate the Economic rent
3. Find out the Market rent with references
4. Affordable if: Economic rent > Market rent
If you buy, build and transfer. What Benefit and Risk rate shoud you choose?
10%
That is different in a cooperative?
The Land Cost does not have to be considered = 0
Given the Floor Area of a building how can the chargeable floor are be calculated?
ChFA: Main usable area (80%)** + Circulation area (10%) + construction ares (5%)*
*Excluding the outer wall area
** without basement area!
