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Identification of risks of investments into residential premises for rent in Poland

Author

Listed:
  • Arkadiusz Górski
  • Kamila Urbańska
  • Agnieszka Parkitna

Abstract

While looking for investment opportunities, investors analyse whether a potential investment will bring satisfactory returns, the level of which depends on many risk factors. That is why it is necessary to analyse the potential risks in the process of investment management. The investors need to possess knowledge of such risks, their influence on the investment, and the methods of avoiding risk. Given the scale of investments into residential property, the focus has been on the risk factors determining the return on investment, which is crucial for a large number of small investors. The identification of different kinds of risks associated with residential premises is crucial for the management of such investments and translates directly into the level of return on the investment. The increase of the investments into residential property is caused by a number of small investors who are looking for an alternative method of investing. Their funds do not bring a satisfactory level of returns while in bank deposits. Those investors recognize the opportunity which arises from renting flats. The temptation of high returns compensates the level of risk.

Suggested Citation

  • Arkadiusz Górski & Kamila Urbańska & Agnieszka Parkitna, 2020. "Identification of risks of investments into residential premises for rent in Poland," WORking papers in Management Science (WORMS) WORMS/20/15, Department of Operations Research and Business Intelligence, Wroclaw University of Science and Technology.
    • Handle: RePEc:ahh:wpaper:worms2015
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    File URL: https://worms.pwr.edu.pl/RePEc/ahh/wpaper/WORMS_20_15.pdf
    File Function: Original version, 2020
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    References listed on IDEAS

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    More about this item

    Keywords

    Risks; Investments; Reeal estate investment management; Investment Properties;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K25 - Law and Economics - - Regulation and Business Law - - - Real Estate Law
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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