A Discounted-Cashflow Based Discussion on Price Rent Ratios From a Lifecycle-Investor Perspective.-Reference-Cited by-同舟云学术

A Discounted-Cashflow Based Discussion on Price Rent Ratios From a Lifecycle-Investor Perspective.

Published:2023-12-27 Issue: Volume: Page:
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Author:

Vogt Jonas¹

Affiliation:

1. DHBW Mannheim

Abstract

Abstract The price-rent ratio is as a widely employed metric for evaluating and assessing real estate investment opportunities. This article presents a derivation of this metric from the perspective of a life-cycle investor contemplating the purchase of a property for owner-occupation, anchored in a discounted cash flow (DCF) valuation. Subsequent discourse on pertinent input parameter values and resulting ratio values is based oninsights drawn from both academic research and practical literature.

Publisher

Research Square Platform LLC

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