This website uses cookies to ensure you have the best experience.

Real Estate Essay

3024 words - 13 pages

Chapter 6

Estimation of Parameters and Updating Procedures

6.0. Introduction

In Chapter 3 we discussed and developed a number of decision and forecasting models. Further in Chapter 4 we discussed how one can apply these models using real life and also synthetic (simulated) data. While realizing the limitations of the data used to apply these models, we discussed and developed an SDSS in Real Estate using GIS in Chapter 5. The purpose of this Chapter is to discuss the methods and techniques for updating the values of the parameters involved in the models from time to time using the data collected in SDSS. This is important since the real life is not static and ever changing and ...view middle of the document...

5 the parameters µ and σ with regard to a particular property are to be estimated and re-estimated as time passes.

• For Box-Jenkin model described in Chapter 3 and Chapter 4 parameters α, β, γ with regard to a particular property are to be estimated and re-estimated as time passes.

• The risk parameter r in the equation (9) in Chapter 3 involves judgment of the decision maker and this is required to be estimated and re-estimated as time passes.

For other models described in Chapter 3 are also to be studied once the appropriate data are available. Furthermore, for qualitative factors, as mentioned in Chapter 5, survey data need to be collected from time to time. This is required to ensure the robustness of decision making, especially for screening a possible set of properties to be considered for investment and developing a feasible set of properties on which hybrid forecasting model to be applied.

6.2. Methods of Estimating Quantitative Parameters

For Itô model described in section 3.5 the parameters µ and σ with regard to a particular property are to be estimated by using respectively the formulae (14) in Chapter 4 and the standard formula for estimating standard deviation. The estimation of the parameter δ, which represents the opportunity cost of developing the property, involves expert judgments in relation to µ. All these three parameters should be estimated from time to time using past time series data for each property.

Method for estimation of the parameters α, β, γ that are involved in Equation (14) in Chapter 4 is described in Section 3.5.4.

The risk parameter r in equation (9) in Chapter 3 involves judgment of the decision maker. It should be estimated from time to time by using methods described in Gupta et al (1974). However, a simple approach would be to try various values of r and draw the graph of U(y) as given in equation (9) in Chapter 3 and ask which graph is acceptable to the decision maker. Accept the value of r corresponding to whichever graph is selected by the decision maker.

For other parameters involved in all other models considered in Chapter 3 general regression methods may be used from time to time as Data Base gets updated.

The main method that has been applied in this research is the method of mathematical modeling for which the solutions have been found by using mathematical programming algorithms. For smaller problems EXCEL SOLVER is adequate to solve such problems. For larger problems, commercial package like LINDO is required to find solutions to such problems. Even for estimating the parameters of a forecasting model, one can conveniently use EXCEL SOLVER, as has been done in this research, by minimizing the sum of squares of forecasting errors over the period/domain of the actual data set.

6.3. Methods of Estimating Qualitative Parameters:

The basic objective of qualitative parameters is to ensure robustness of decision making. This may be achieved by developing a SDSS...

Other Papers Like Real Estate

Dubai Real Estate Market Essay

521 words - 3 pages Dubai Real Estate Market- Steeper the growth faster the decline I still remember the difficulties I faced in finding a house for rent in Sharjah (one of the Emirates of UAE and a neighbouring city of Dubai) in 2007. The rent prices were shooting every day and real estate agents were ecstatic to tell this news to the tenants. I was really contemplating my decision to move to a place where cost of living was rising every day. When I saw Dubai

Real Estate Brokerage Industry Essay

2102 words - 9 pages Application of Computational Methods Real Estate Investment Industry: (project no) Authors :( 3:3:3) Application of Computational Methods Real Estate Investment Industry Abstract The paper studies the computation methods applied in real estate brokerage industry, Real estate development is a commercial activity involving taking the take the future of

Real Estate Project

3591 words - 15 pages Table of Contents Objective 3 Introduction 4 The Real Estate Sector in India 4 A Brief about DLF: 5 Demand and Supply Scenario 6 Reasons for growth in Real Estate Sector: 9 Demand Side: 10 Supply Side: 11 Production and Cost Structure 12 Market Structure and Player’s Strategy 14 STRATEGY FOLLOWED (Player Considered: DLF): 15 Observations and Analysis 18 References 20 * Objective The sector chosen for our

Franchising and Real Estate

842 words - 4 pages How Important is Location and Who Should You Work With? The October edition of Franchising World is out and it seems that the franchising world as we know is focusing on real estate. Two articles stuck out, “10 Questions to Ask Your Landlord” and “Benefits of Site Selection with a Real Estate Broker”. When considering a home or a business, we’ve all heard the proverbial phrase – “location, location, location!” Is this true? Does it matter for

Gulf Real Estate Properties

928 words - 4 pages Case 2: Gulf Real Estate Properties. Please provide a Managerial Report that includes: 1. Appropriate descriptive statistics to summarize each of the three variables for the forty Gulf View condominiums 2. Appropriate descriptive statistics to summarize each of the three variables for the eighteen No-Gulf View condominiums 3. Comparison of your summary results from #1 & #2. Discuss any specific statistical results that would help a real

Real Estate Finance

796 words - 4 pages | | (1)     | 6. | Which of the following definitions of income includes income from real estate classified as a capital assets? | Passive income | | Active income | | Portfolio income | | Passive activity income | | (1)     | 7. | Which of the following is FALSE regarding expense stops? | Expense Stops protect owners against increases in expenses | | Expense stops are usually based on expenses during the first term of the lease

Analysis of Real Estate Fundng

1998 words - 8 pages Analysis of Real Estate Funding in India Real Estate Funding Commercial real estate sector is in boom in India. In the last fifteen years, post liberalization of the economy, Indian real estate business has taken an upturn and is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. This growth can be attributed to favourable demographics, increasing purchasing power, existence of customer friendly banks

Real Estate Financing in Bd

5161 words - 21 pages Report on Real Estate Financed by IDLC Finance LTD. Date of Submission: 11th April, 2015 Department of Finance University of Dhaka Submitted to Hussain Ahmed Enamul Huda Lecturer Department of Finance University of Dhaka Submitted by Group SL | Name | ID | Remarks | 1 | Sifat sadia | 17-003 | | 2 | Barna Paul | 17-047 | | 3 | Maghla Hossain | 17-061 | | 4 | Saima Sultana | 17-069 | | 5 | Nawsina Arif | 17-085

Real Estate Finance Midterm Keller

1673 words - 7 pages  1. | Question : | (TCO A) Real estate is an appropriate investment vehicle for ______________________________ . | |   | Student Answer: | |  individuals, but not for institutions such as pension funds and life insurance companies |   | | |  institutions such as pension funds and life insurance companies, but not for individuals |   | | |  individuals and institutions, depending upon their time horizons and investment goals

Zoning in Houston- Real Estate Principles

933 words - 4 pages Reid Weber February 6, 2016 Real Estate Principles Chapter 5 Essay In chapter 4 of the text, Real Estate Principles: A Value Approach- by David C. Ling and Wayne R. Archer, there is a discussion on having limited or no public real property zoning regulations. In this short essay I will discuss the pros and cons of pubic real property zoning regulations as well as the effectiveness of this policy as it relates to Houston

Investing in Real Estate in China

2787 words - 12 pages Executive Summary The Real Estate Investment in China is considered a growing business in the future. China being one of most populous place, people are seeking better living places. By seeing this investment opportunity in China, our group was highly interested. We believe that China has considerable amounts of land for this opportunity and our business to grow. Real Estate demand is raising in China since their economy continues to

Related Essays

Real Estate Essay

1268 words - 6 pages If you thought 2014 would provide a silver lining for Mumbai's residential situation, here's a reality check for you: 2014 will not be better but worse as the number of unsold flats in ready as well as under-construction projects has reached an all-time high  of 130,000 due to weak demand and high prices. According to real estate consultancy firm Knight Frank's residential report for the second quarter of FY2013, Mumbai's property market is in

Real Estate Essay

698 words - 3 pages Apartment Information Center Direct (949) 223-0805 Main (949) 223-0800 Toll Free (800) 422-5115 Fax (949) 223-0808 Revised March 5, 2009 BROKER/AGENT REFERRAL PROGRAM A commission equal to \$300.00 (three hundred dollars) per move-in will be paid to licensed Real Estate Brokers and Real Estate Professionals. It’s as easy as 1-2-3. 1. Realtor/Agent can fax the completed registration form to the rental living Apartment

Real Estate Essay

4040 words - 17 pages REAL ESTATE AND HOUSING ASSOCIATION OF BANGLADESH Bye- Laws on Code of Business Conduct REHAB is committed towards the enhancement and growth of the Real Estate Sector of Bangladesh. REHAB members recognise that for sustainable long term growth of this sector, they must conduct their business with a high degree of professionalism, fairness, integrity and ethics. In recognition of the member’s responsibility and obligation to Customers, Land

Evergrande Real Estate Group Essay

666 words - 3 pages Company Overview Evergrande Real Estate Group is engaged in the property development, property investment, property management, property construction, hotel, other property development related services and fast consuming industry in the People’s Republic of China. It is one of the ten largest real estate developers in Mainland China with 540 billion RMB worth of total asset and 80,000 employees. It is China’s second-largest property developer