THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT
Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisi...
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| Format: | Article |
| Language: | deu |
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University of Oradea
2013-07-01
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| Series: | Annals of the University of Oradea: Economic Science |
| Subjects: | |
| Online Access: | http://anale.steconomiceuoradea.ro/volume/2013/n1/011.pdf |
| _version_ | 1811241122192687104 |
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| author | Hristea Anca Maria |
| author_facet | Hristea Anca Maria |
| author_sort | Hristea Anca Maria |
| collection | DOAJ |
| description | Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisis determined an increase of the real estate request, while despite all expectations one did not assist a crash of the prices. Economic reality showed that real estate assets value (buildings, land) kept proportions with economic reality over time. A comparison between stock exchange market and the real estate market shows that while an movables investor (investments in stocks, bonds or life insurance) might lose completely his initial investment, the investments in real estate assets, such as buildings, would keep their quality as goods and would also keep a value to better resist shocks and thus allowing an increase of the capital. When appreciating the value of an investment the first
things to analyze are the return, liquidity and risk criteria, which are essential in real estate investments too. Stimulating real estate market must be not only a wish but also a reality of global economy, since it can correct many of the aggregated indicators of a country. Containing scientifically detached from economic practice, this article is addressed to readers with interests in real estate investment. The language is usually referred particularly to the qualitative side of the real estate market approach. The feasibility of the real estate investments is being conditioned by their capacity to generate important profits, on the background of the reduction of the duration of recovery of their value. The economic instability from the last couple of years has generated fears and failures but, paraphrasing Johann Wolfgang von Goethe, courage is a mixture of genius, magic and power that helps us succeed in everything we set our mind to. The investments on the real estate market usually have a long period
of recovery, compared to the placements at the stock market or to the commercial business. The structure of investments in the field of real estate is complex and depends on several factors: the fiscal and financial policies of a country, elements that are specific to the constructions sector, the fluctuations of the real estate market, the development degree of a nation, the free circulation of people, the evolution of the exchange rate etc. The international statistics show that the real estate sector represents one of the most profitable businesses from the last two decades. Even now the real estate sector seems to be profitable, especially for the speculators, in the measure in which there are financial sources and enough information about the market. |
| first_indexed | 2024-04-12T13:31:47Z |
| format | Article |
| id | doaj.art-37fb35c705604b5988aa9190d665a64b |
| institution | Directory Open Access Journal |
| issn | 1222-569X 1582-5450 |
| language | deu |
| last_indexed | 2024-04-12T13:31:47Z |
| publishDate | 2013-07-01 |
| publisher | University of Oradea |
| record_format | Article |
| series | Annals of the University of Oradea: Economic Science |
| spelling | doaj.art-37fb35c705604b5988aa9190d665a64b2022-12-22T03:31:09ZdeuUniversity of OradeaAnnals of the University of Oradea: Economic Science1222-569X1582-54502013-07-01221103112THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENTHristea Anca Maria0Academia de Studii Economice din Bucuresti,Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisis determined an increase of the real estate request, while despite all expectations one did not assist a crash of the prices. Economic reality showed that real estate assets value (buildings, land) kept proportions with economic reality over time. A comparison between stock exchange market and the real estate market shows that while an movables investor (investments in stocks, bonds or life insurance) might lose completely his initial investment, the investments in real estate assets, such as buildings, would keep their quality as goods and would also keep a value to better resist shocks and thus allowing an increase of the capital. When appreciating the value of an investment the first things to analyze are the return, liquidity and risk criteria, which are essential in real estate investments too. Stimulating real estate market must be not only a wish but also a reality of global economy, since it can correct many of the aggregated indicators of a country. Containing scientifically detached from economic practice, this article is addressed to readers with interests in real estate investment. The language is usually referred particularly to the qualitative side of the real estate market approach. The feasibility of the real estate investments is being conditioned by their capacity to generate important profits, on the background of the reduction of the duration of recovery of their value. The economic instability from the last couple of years has generated fears and failures but, paraphrasing Johann Wolfgang von Goethe, courage is a mixture of genius, magic and power that helps us succeed in everything we set our mind to. The investments on the real estate market usually have a long period of recovery, compared to the placements at the stock market or to the commercial business. The structure of investments in the field of real estate is complex and depends on several factors: the fiscal and financial policies of a country, elements that are specific to the constructions sector, the fluctuations of the real estate market, the development degree of a nation, the free circulation of people, the evolution of the exchange rate etc. The international statistics show that the real estate sector represents one of the most profitable businesses from the last two decades. Even now the real estate sector seems to be profitable, especially for the speculators, in the measure in which there are financial sources and enough information about the market.http://anale.steconomiceuoradea.ro/volume/2013/n1/011.pdfreal estate investment; return of investment; investment liquidity; real estate investment risk; fair value; real estate market |
| spellingShingle | Hristea Anca Maria THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT Annals of the University of Oradea: Economic Science real estate investment; return of investment; investment liquidity; real estate investment risk; fair value; real estate market |
| title | THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT |
| title_full | THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT |
| title_fullStr | THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT |
| title_full_unstemmed | THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT |
| title_short | THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT |
| title_sort | analysis of the real estate investments in the current economic environment |
| topic | real estate investment; return of investment; investment liquidity; real estate investment risk; fair value; real estate market |
| url | http://anale.steconomiceuoradea.ro/volume/2013/n1/011.pdf |
| work_keys_str_mv | AT hristeaancamaria theanalysisoftherealestateinvestmentsinthecurrenteconomicenvironment AT hristeaancamaria analysisoftherealestateinvestmentsinthecurrenteconomicenvironment |