Binkert 2.0 Flashcards
How does one develop Real estate?
- Research
- Analysis
- Synthesis
- Cases
How does one develop Real estate: Research
Gather the basics:
- Real estate market
- property history
- community statistics
- competing projects?
- Obligations?
- Existing studies?
- Credit standing of the client?
How does one develop Real estate: Analysis
Organize material from research phase:
- task analysis
- Objective analysis
- market analysis
- location analysis
- target group analysis
- competitor analysis
- partner evaluation
- functional study
- financing models
How does one develop Real estate: Synthesis
- Strategy formulation
- define goals
- rental / purchase prices
- market development
- cost-benefit analysis
- absorption?
- risk partners?
- authorization capability?
- economic feasibility?
Synthesis tries to put together a new whole from the elements found through the analysis
What Questions should be answered in the strategy formulation?
- Do I want to change the current state of property?
- Do I want to keep or sell the current property?
- Do I want to keep or change the changed property?
Example:
- What does he want to develop?
- What gross profit does he excpect?
- What price will he pay?
Development: What could be possible goal definitions?
- I want to achieve a certain return
- I have to meet a certain deadline
- I am aiming for the maximum utilization
- I have a specific investment requirement
- I want a not-for-profit property
Rental vs. purchase price
- Rental properties generate continous income
- sales objects generate singular returns
- Lex Koller reduces buyer potential
- rental properties have larger fluctuations
- Buyers have higher expectations
Synthesis: Market Development
- Real estate is counter-cyclical
- Boom phases lead to overheating
- Bust phases create fragile opportunities
- keep in mind endogene/exogene cycles
Synthesis: Cost-Benefit Analysis
- Develop well-established uses
- Decoy tender (Lockvogel-Angebote)/ iconic objects
- Alternative proposals to the standard ones
Synthesis: Absorption
- Is my product new to the market?
- How big is the market?
- How many competing products are in the market?
- What is the competition planning?
Synthesis: Risk partners
- can I carry the risk alone
- Do I need know-how partners?
- Do I need financial partners?
- Do I need to keep the majority?
Authorization Capacity?
- Does my development comply with the regulations?
- Will the current regulations last?
- Will the regulations be tightened?
- Legitimate Opponents?
- All stakeholders picked up?
- Can I change the legal framework?
Profitability?
- Does my development perform? (added value)
- Observation period (hold or sell)
- Inclusion of operating costs
- Lifespan of the objects
- Stable flow income guaranteed?
- Value increase possible
What are endogen and exogen factors?
How can you minimize Threats and maximize opportunities?
