Risk Management for Residential Property.: Hedging alternatives for small investors

This thesis has the intention to investigate the risk situation for small investors in the domestic residential property market in Sweden, and discuss some alternatives for reducing that risk. Focus will be on risk reduction by diversification. Residential property is considered to be a rather safe investment for the long term investor. The return is determined by the change of value for the property (capital growth), and the direct return through net rental income …

Contents

1 Introduction
2 Portfolio Diversification
2.1 Risk
2.2 Capital asset pricing model (CAPM)
3 Residential property
3.1 The risk situation for residential property
3.2 Tax differences between small and large investors
3.3 Risk handling methods for residential property
4 Hedging alternatives for residential property
4.1 Other residential property
4.2 Other real estate
4.3 Equities and Bonds
4.4 Creating an optimal portfolio
4.5 Portfolio effects and implications for investor
5 Conclusion
5.1 Suggested future research
References

Author: Folkestad, Geir

Source: Jönköping University

Reference URL 1: Visit Now

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