Investment appraisals in housing property development

Abstract

The disadvantages of the national management practice and financing of the construction, maintenance of state and municipal property, which leads to an overestimation of its value, shortening of  the terms rise of the cost of operation are considered in the article. In contrast, it is proposed the application of the concept of development ofpropertymanagement as real estate, regardless of the ownership and financing facilities. This means the need for planning and management of all types of costs and revenues over the life cycle of buildings, including those at the operational stage in the planning of major repairs and reconstruction. In relation to the operation of housing extension of the concept of development activities, profit-oriented striving to optimize the relationship between costs and revenues is proposed. Therefore the costs and revenues that need to be taken into account in the planning of investment projects for the construction and maintenance of residential properties, in particular, those which are often neglected in the calculations are analyzed. Among them we consider unpredictable and redundant costs, management costs, operational cost, including the maintenance of buildings and major repairs, the cost of debt, inflation, the occupancy of homes and of non-payment residents. A special place is given to the cost analysis of maintaining the house and the ratio of operation costs and the cost of repairs. The methods of investment analysis of residential real estate projects, the use of sensitivity analysis taking into account the proposed indicators are proposed.