MODERN OPTIONS FOR THE FINANCING OF THE REAL ESTATE INVESTMENTS

Chiriac Silviu-Cornel-Virgil () and Dimi Ofileanu
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Chiriac Silviu-Cornel-Virgil: Universitatea 1 Decembrie 1918 Alba Iulia, Universitatea din Oradea

Annals of Faculty of Economics, 2015, vol. 1, issue 1, 873-881

Abstract: The investments represent one of the most important elements in the national economy development strategies, as well as in all the business fields and branches. The notion of investment is extremely complex, perceived with different meanings and significates. In a general, wider meaning the investments represent a capital placement which is made with the purpose of obtaining profit bearing incomes in the future. In a narrower meaning, investments mean the totality of expenses made for obtaining capital assets which are future potential factors in the formation of incomes. Investments represent the most important factor in the development strategies of the national economy as well as in all the business fields and branches. The investment strategy represents an important element in the management of the investments and a component of the general strategy of the entity. The use of investment strategies in the management activity implies the application of scientific techniques and methods. The great number of studies carried out shows that there were no certain answers formed, very often the option for a form of financing or the other is influenced only by the “level of accessibility” of the resources available on the financial market and the financing policy of many companies is guided rather by the constraints of the financial market than a coherent company strategy In order to ensure a constant economic growth it is necessary to prepare investment projects. In practice the predominant one is the investment activity based on real investments performed for the modernising of assets, in order to ensure their physical and moral wear and tear. The analysis of real estate investments can be made using a various range of indicators, from the traditional ones to those based on the updated cash flow, using traditional analysis techniques or complex techniques used by specialists with training in the analysis of real estate investment. The accountancy of real estate investments is made with the respect of the provisions of IAS 40. The present paper makes a brief overview of the most frequently used financing options of the real estate investments. In order to exemplify the importance the real estate investments must benefit of, we offered financing solutions for them. Real estate investments help the fulfilment of the main management objectives: the continuation of activity and performance of entity.

Keywords: real estate investments; mortgage loan; real estate leasing (search for similar items in EconPapers)
JEL-codes: G10 (search for similar items in EconPapers)
Date: 2015
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