The Objective of Investment Essay Example | Topics and Well Written Essays - 1500 words

The Objective of Investment - Essay Example Investors now believe that real estate is an important investment opportunity and increasingly investors are investing in real estate (IPF, 2007). There are fluctuations not only in the asset or equity markets but even real estate investment have their own fluctuations as well. So, it is important for investors to analyze the rise and fall in the market of real estate. Therefore considering the changes in the market, the report aims to understand how the commercial property business operates as an investment and analyze the internal and external factor that influence the prices of properties. The main the purpose of the report is to understand how to maximize income on properties through purchasing the right product at the right time and how the capital value is influenced by that. The second part of the statement  will identify how to maximize the revenue in term of capital value and income revenue through ‘ProActive‘ Management, it will provide further knowledge towar ds the way management overall affect or improve the value of a property. Investment in commercial properties is defined as buying and purchasing of commercial properties with the objective of earning returns or buying commercial properties for the purpose of renting it. Adair et. al (2009) have published a report in which the properties of United Kingdom has been analyzed and from the analysis, it has been found that the value of the commercial properties in the  UK accounts to  £762 billion. However, the value of the residential properties is equal to  £3,400 billion. From the  £762 billion invested in the commercial properties, it has been found that almost 90% of the investors or owners of the properties are using their properties with the aim of achieving returns by giving their properties for rent to the tenants.