February 2014
Beginner
640 pages
24h 37m
English
Content preview from Investor Behavior: The Psychology of Financial Planning and Investing
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
CHAPTER 30
Real Estate Investment Decision-Making in Behavioral Finance
INTRODUCTION
The real estate market shares several psychological biases with traditional financial markets. Combining these behavioral biases with severe limits to arbitrage that include the illiquid aspects of the market, high transaction costs, and short sale restrictions often magnify the effect of cognitive and emotional issues on real estate valuations. As a result, real estate prices in the short and medium run often diverge from their fundamental values and market price adjustments are gradual. This is particularly noticeable in the residential real estate market where most participants are inexperienced, unsophisticated investors and driven by financial, emotional, and personal motives.
Irrational behavior of real estate market participants was partly a driving force behind the residential real estate boom and bust cycle that occurred during the first decade of this millennium. Because this cycle has had severe negative effects on both the United States and the global economy, it serves as a reminder of the widespread economic consequences that aggregated irrationality by real estate market participants can cause.
This chapter focuses on established psychological attributes in residential and commercial real estate and in real estate investment trusts (REITs) ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.