Analysing Earning Outlook for Housing Investment by Using Different Strategies in the Area of Tampere
Pulkkinen, Emilia (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022080319363
https://urn.fi/URN:NBN:fi:amk-2022080319363
Tiivistelmä
The purpose of this thesis is to research the profitability of housing investments in Tampere. Cash flow and capital gain are used as strategies to evaluate the profitability of investments. 14 districts are researched, which are located in the center, west, south, and east of Tampere. Based on that, the research question is specified as analyzing earning outlook for housing investment by using different strategies in the area of Tampere.
Two data collection methods are used. Quantitative method includes own calculations of cash flow and capital gain. Numerical data to perform calculations is gathered from Statistics of Finland. Final results were converted into graphs in PowerBI. The purpose of calculations is to analyse profitability of housing investments based on historical data occurring during the last 10 years. Qualitative method includes an interview with three professional housing investors. The purpose of the interview is to support the results and provide an overview of predictions on development of housing investments in the future.
According to the results, combination of both strategies is the most profitable. Capital gain results in higher profit in shorter time period. Whereas cash flow provides higher profit for investors in the longer time period as the amount of loan decreases. Housing investment has become more common nowadays. Respondents believe that investment popularity follows the pattern of supply of apartments. However, covid-19 pandemic has increased uncertainty and risk among investors.
Two data collection methods are used. Quantitative method includes own calculations of cash flow and capital gain. Numerical data to perform calculations is gathered from Statistics of Finland. Final results were converted into graphs in PowerBI. The purpose of calculations is to analyse profitability of housing investments based on historical data occurring during the last 10 years. Qualitative method includes an interview with three professional housing investors. The purpose of the interview is to support the results and provide an overview of predictions on development of housing investments in the future.
According to the results, combination of both strategies is the most profitable. Capital gain results in higher profit in shorter time period. Whereas cash flow provides higher profit for investors in the longer time period as the amount of loan decreases. Housing investment has become more common nowadays. Respondents believe that investment popularity follows the pattern of supply of apartments. However, covid-19 pandemic has increased uncertainty and risk among investors.