Detailed Information

Cited 0 time in webofscience Cited 0 time in scopus
Metadata Downloads

보증금 처리방식에 따른 오피스 투자수익률 비교분석Differentiating Rate of Returns in an Office Investment Depending on Various Ways in Treatment of Deposit

Other Titles
Differentiating Rate of Returns in an Office Investment Depending on Various Ways in Treatment of Deposit
Authors
이창무정유선
Issue Date
Sep-2018
Publisher
한국부동산분석학회
Keywords
Rate of Return; Deposit; Leverage; Office Rental Market; 수익률; 보증금; 레버리지; 오피스시장
Citation
부동산학연구, v.24, no.3, pp.113 - 121
Indexed
KCI
Journal Title
부동산학연구
Volume
24
Number
3
Start Page
113
End Page
121
URI
https://scholarworks.bwise.kr/hanyang/handle/2021.sw.hanyang/149355
DOI
10.19172/KREAA.24.3.8
ISSN
1229-4403
Abstract
In the Korean real estate market, distinctive rental contracts including Pure Monthly Rent, Monthly Rent with Variable Deposit(MRVD) and Chonsei have co-existed. Conventionally the deposit in the office market is assumed to be put in the bank, and the landlord gets interest income from it in the cost of corresponding monthly rent. However, the deposit is used to reduce the equity investment, that is, as leverage and no interest income is produced from it. Because of this misconception of the role of the deposit, the conventional way of calculating earnings rate can be misleading. Therefore, an acceptable way of calculating the rate of returns is required for the distinctive Korean office market. This study examines five methodologies differentiating the role of the deposit and the base rate of deposit considering the function and the portion of deposit in MRVD. And then we apply the five methodologies to the empirical comparisons using the data of Korea Association of Real Estate Investment Trusts. The empirical results show that the interest seeking methodology is likely to underestimate the actual investment performance. Interestingly the rate of return based on the leverage treatment of the deposit is most similar to the internal rate of return. This is one evidence that the way of earnings rate calculation with the treatment of deposit reveals actual investment performance in a better way.
Files in This Item
Go to Link
Appears in
Collections
서울 공과대학 > 서울 도시공학과 > 1. Journal Articles

qrcode

Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.

Related Researcher

Researcher Lee, Chang Moo photo

Lee, Chang Moo
COLLEGE OF ENGINEERING (DEPARTMENT OF URBAN PLANNING AND ENGINEERING)
Read more

Altmetrics

Total Views & Downloads

BROWSE