Reduction In Interest Rates. Income Real Estate Assessment Method

the object of this thesis is the important parameter return rate of income capitalizationapproach in real estate appraisal. Return rate makes an important role in income capitalization approach. The change of return rate exercises a great influence on the value of real estate. So, thedetermination of return rate will directly influence the accuracy of the real estate appraisal,indirectly influence the reasonableness of asset recombination and influence the legal rights and interests of real estate transaction sides, influence the norm of realestate market, influencing risk of real estate, influence imposition of real setate estate tax and soon. And at present, the determintion for return rate doesn't unify. There are somemethods, sometimes the difference between them is extreme. so, it is necessary for the return rateto study in depth.Based on the existing achievements in theoretical research, the thesis applies the engineeringeconomics theory,investment theory and economics to study the definition,essence and determination method of return rate. the thesis defines return rate is R of cash flow formula for income capitalization approach.The essence is capital investment expectation return rate.According to engineering economicstheory, the thesis deeply analysis the relationship of return rate, increase rate in capital and internal return rate (IRR),analysis the relationship of return rate,depreciation rate, depreciation and inflationrate. This makes the essence of return rate more clarity. The aim is to set up strict theory foundation for return rate.On tbe basis Qf the ndOnai wisal ds, the bo draVVS bo hibo mode.c~ ^sset bo be - ed ~ bo ha mp. m ffisxbobo is SUPPlied to esthate the An theThe thesis dsfor that tri be ~ on the tisk levat Qf wi CaSh flOw mmore the risk ornd be ha is he themere tri bo is he nd the more the ndis fow the un An rate is tow...