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Investment Property in Rental: Profitability and Risk Analysis

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New Metropolitan Perspectives (ISHT 2018)

Part of the book series: Smart Innovation, Systems and Technologies ((SIST,volume 100))

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Abstract

Until 25/30 years ago it was not essential to study the investments in detail to understand where to deposit own savings: the growing markets and the economic boom favored the success of a large portion of investments on the market and in particular for the housing market, where the investment risk was particularly low. In recent years, however, the economic landscape has reversed and there is an increasing need for specific analyses that seek to try to estimate the future development of the value of own tangible property and the assessment of potential income. This work focuses on the risk and profitability of rental real estate investments, looking at average return values according to the different uses of buildings and identifying an average risk value, and then comparing them with securities investments such as ten-year BTPs.

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Notes

  1. 1.

    The basic values used as the starting data for the analysis were collected from the OMI database, Observatory of the Real Estate Market, of the Agenzia delle Entrate, that is based to real value of Buy-Rental investment. The OMI is an official source that allows you to consult data on the prices of real estate values and leases throughout Italy.

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Correspondence to Franco Prizzon .

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Prizzon, F., Cullino, A. (2019). Investment Property in Rental: Profitability and Risk Analysis. In: Calabrò, F., Della Spina, L., Bevilacqua, C. (eds) New Metropolitan Perspectives. ISHT 2018. Smart Innovation, Systems and Technologies, vol 100. Springer, Cham. https://doi.org/10.1007/978-3-319-92099-3_56

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