Real Estate Returns

IF 0.4 Q4 BUSINESS, FINANCE Journal of Alternative Investments Pub Date : 2020-08-21 DOI:10.3905/jai.2020.1.111
J. C. Francis, R. Ibbotson
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Abstract

This article compares and contrasts investments in residential, farmland, and commercial real estate. We also compare real estate investments to more traditional investments in stocks, bonds, commodities, and alternative assets. Price-change returns, rental returns, and total returns from 1991 through 2018 are the focus of the analysis. Including rent is important because rent makes up a significant part of the returns. We include empirically derived implicit net rent data from owner-occupied residences and owner-occupied farmland in the analysis. TOPIC: Real estate Key Findings • High Returns. All three real estate categories did well. But farm real estate had the highest average returns, and the average farm price did not dip during the 2008–2009 subprime mortgage crisis. • Riskiest. Commercial real estate was the riskiest category of real estate investment between 2003 and 2019. And it suffered the largest price dip during the subprime mortgage crisis. • Resolving Uncertainty. Because real estate is relatively illiquid, it is difficult to measure the year to year returns precisely. However, our overall returns from rent and price changes are more informative.
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房地产收益
这篇文章对住宅、农田和商业地产的投资进行了比较和对比。我们还将房地产投资与股票、债券、大宗商品和另类资产等更为传统的投资进行了比较。1991年至2018年的价格变化回报、租金回报和总回报是分析的重点。包括租金很重要,因为租金占回报的很大一部分。我们在分析中包括了经验推导的自住住宅和自住农田的隐含净租金数据。主题:房地产主要发现•高回报。所有三个房地产类别都表现良好。但农场地产的平均回报率最高,而且在2008-2009年次贷危机期间,平均农产品价格并未下跌。•风险。2003年至2019年期间,商业房地产是风险最高的房地产投资类别。在次贷危机期间,它遭受了最大的价格下跌。•解决不确定性。由于房地产的流动性相对较差,很难精确地衡量其年回报率。然而,我们从租金和价格变化中获得的总体回报更能提供信息。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
1.50
自引率
14.30%
发文量
40
期刊介绍: The Journal of Alternative Investments (JAI) provides you with cutting-edge research and expert analysis on managing investments in hedge funds, private equity, distressed debt, commodities and futures, energy, funds of funds, and other nontraditional assets. JAI is the official publication of the Chartered Alternative Investment Analyst Association (CAIA®). JAI provides you with challenging ideas and practical tools to: •Profit from the growth of hedge funds and alternatives •Determine the optimal mix of traditional and alternative investments •Measure and track portfolio performance •Manage your alternative investment portfolio with proven risk management practices
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