Modeling Financial Surplus of the Housing Projects Developer
Modeling Financial Surplus of the Housing Projects Developer

Author(s): Daniel Iskra, Tadeusz Czernik
Subject(s): Business Economy / Management, Evaluation research, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: housing projects development; financial surplus; stochastic modeling; simulations;
Summary/Abstract: Recent events taking place on the housing project market provide a strong impetus to the study of risk in housing projects development. This issue is important not only from the point of view of the developer but also his client. This paper proposes a dynamic model of the financial surplus process. The model takes into account structure of the credit payments, the random nature of the real estate sale process (compound Poisson process: the moment of sale and sale price), predictable and unpredictable expenses.

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