Real estate market

Natálie Mestlová

Bakalářská práce

Abstract:

The bachelor's thesis Real Estate market in the theoretical part defines the basic concepts in the real estate market sector. The author tries to explain to the reader all the differences between real estate subjects, real estate entities, and later on gets to the calculations, which are used in more detail in the practical part. In the practical part, the bachelor's thesis basically deals with a comparison of very similar investments in the Pilsen region. The investor acquired these properties in two different cities. The year of acquisition, purchase price, mortgage loan, payback period, and others were therefore different. The main goal is to find out which investment was the most advantageous for the investor on the basis of several calculations. Key calculations used by the author are, for example, payback period, net present value, the interest rate of a mortgage loan, etc. Thanks to all the calculations, it turned out that the first investment that was made in 2000 for CZK 250,000 was definitely the most advantageous for the investor. The investor did not take out any mortgage loans for this investment and paid the entire amount in cash. As a result, the investor did not pay any interest or bank fees. It turned out that this investment had the shortest payback period of 8 years and 1 month. The investment that pays off at least is apartment number two which was purchased for CZK 660,000. The total purchase price with all the interest rates, bank charges, etc was CZK 763,509. The investor had to draw on a mortgage loan of CZK 490,000. After all the calculations, the author found out that this investment has the lowest net present value, assuming a project life of 20 and 30 years. It also has the lowest internal rate of return. The payback period is also relatively long, less than 16 years.

Keywords

rent development, real estate analysis, payback period, real estate market, mortgage market, investments, real estates development in the Pilsen region, market prices

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 15. 3. 2021

Obhajoba závěrečné práce

• Vedoucí: Bc. Ing. Jiří Čermák, Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Bakalářský studijní program / obor:
Economics Policy and Administration / Business Administration