The Determining The Discount Rate for an Income Property Valuation

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26610%2F14%3APU114776" target="_blank" >RIV/00216305:26610/14:PU114776 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Determining The Discount Rate for an Income Property Valuation
Original language description
The income evaluation is one of the basic methods to establish a price of a real estate. It deals with a discount rate. But there are no obligatory methods how to establish the discount rate. Generally, the discount rate consists of two components: the risk-free rate of profit and risk premiums. Risk premiums contain a risk that a property will not generate profits which are considered in the valuation. This risk is caused by a lot of criteria which should be taken into account during the valuation. Tosee how discount rate is determined by real estate appraisers, I conducted a survey. Respondents were asked to answer eighteen questions using an electronic form. The survey concerned determination of the discount rate when valuing the yield of administrative and office buildings. In my survey, I focused, among other things, on how the risk premium is provided and what risk criteria are used. Most valuers determine risk premiums in the discount rate by professional estimate. Only a minor
Czech name
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Czech description
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Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
PBE PhD FORUM 2014 Octtober 16-17, 2014, Kroměříž, Czech Republlic PROCEEDINGS
ISBN
978-80-214-5051-6
ISSN
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e-ISSN
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Number of pages
9
Pages from-to
146-154
Publisher name
VUT v Brně
Place of publication
Brno
Event location
Kroměříž
Event date
Oct 15, 2014
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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