Property investment: gearing and portfolio returns

IF 1.6 Q3 BUSINESS, FINANCE
N. French, Michael Patrick
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引用次数: 1

Abstract

PurposeThe aim of this study is to comment upon the relatively straightforward but often misunderstood role of gearing (or leverage) on the potential equity return of a property investment portfolio.Design/methodology/approachThis education briefing is an explanation of the how the addition of individual assets to a portfolio can, with gearing, impact upon the portfolio return.FindingsAlthough, this case study is relatively straightforward, it shows how portfolios can be geared to give enhanced returns at differing, aggregate and levels of risk.Practical implicationsThe process of borrowing at a bank rate below the return rate on an investment project can increase the equity return of the project as long as all incomes and discount rate remain at appropriate levels.Originality/valueThis is a review of existing models.
房地产投资:杠杆和投资组合回报
本研究的目的是评论相对简单但经常被误解的杠杆(或杠杆)对房地产投资组合的潜在股权回报的作用。设计/方法/方法本教育简报解释了在投资组合中增加单个资产如何通过杠杆作用影响投资组合的回报。尽管这个案例研究相对简单,但它展示了如何调整投资组合,以在不同的总风险和风险水平下获得更高的回报。实际意义只要所有收入和贴现率保持在适当的水平,以低于投资项目回报率的银行利率借款的过程可以增加项目的股本回报率。原创性/价值这是对现有模型的回顾。
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
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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