Home  Journals  Financial Analytics: Science and Experience  1(25) - 2010 January

The applicability of discounting method in the face of financial crisis

Available online: 26 January 2010

Subject Heading: ASSESSMENT BUSINESS

JEL Classification: 

Applicability of discounting method to determine the value of the property in relation to the financial crisis, when sufficient long-term decline is expected to basic indexes. Because data is not yet forecast crisis, for modeling sustainable drop indexes can be used for experimental purposes relevant previous value by changing the character value of the property with the pace of change at minus-sign. Built thus test example shows the applicability of earlier models discount to crisis fall basic indexes within certain limits. The discount rate is negative, which corresponds to the value of the real estate market. It is shown that receive rental income to reduce loss through the fall of its value during the crisis.

Keywords: assessment of the real estate market value, the pace of change in the value, the income approach, the method of discount income, rate, iscount, construction work, net operating income

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ISSN 2311-8768 (Online)
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