GLUHONETS N.N., VLADIKINA E.G.

 

KAZAKH ENGINEERING - TECHNICAL ACADEMY

 

nichiporchik.nat@mail.ru

 

 

MONITORING OF REAL ESTATE MARKET IN THE MANAGEMENT OF REAL ESTATE

 

             Real estate is a region located in the area with its natural resources, water, and other mineral and plant resources, as well as being on its residential and non-residential premises, businesses, buildings and structures. In accordance with the law to real estate are also subject to state registration of aircraft and sea vessels, inland vessels, space objects.

             Thus, the object of the ownership of land is land, the territorial boundaries of which are determined in accordance with the legislation on the basis of documents issued to the owner of the competent authorities of the State Administration of Land Resources.

             Objects of property rights and other property rights to residential premises are residential houses , apartments in apartment buildings , rooms, meeting specified sanitary, fire, urban development and technical requirements and intended for residence.

             Now recognized as a subject of rights of property complex used for business. Real estate is a financial asset,  form of capital investment that can bring income to the owner. From the point of view of the tasks of management of real estate operations are of particular interest following a group of financial assets: land, residential and non-residential premises, plant, building and construction.

             Real estate and deal with it must be registered in accordance with the law.

Depending on the specific objectives of management should take into account the particular properties that affect the results of transactions. They are:

             -à potential increase in the cost of land , caused, as a rule, changes in land use system relative shortage of sites with similar location , inflation and other factors;

             -uneven cash flows due to the investment process of the transformation of negative cash flows during the construction of the object in the positive - in the period of its operation , and finally obtaining a large sum of money on the sale of the property;

             -wear of buildings and structures in use, environmental impact , changes in technology and other factors , that for a long time interval reduces their cost;

             -flexible financing terms , allowing the use of equity and debt , as well as a "complex " by the time of the financing , interest, participation in financing the owners and the like, thus affecting the valuation of real estate;

             -a combination of legal rights , including the combination of the legal rights and interests in respect of the property, such as rental of the division of rights , pledge, complete economic management , etc.;

             - tax burden, which are, as a rule, one of the causes of transactions;

             - risk and uncertainty because real estate is immobile asset investments are subject to a wide range of risks, which requires an analysis of the object and the surrounding area ;

             - personalizovannost segmentation and real estate markets , which justifies the difficulty in collecting data on the competing objects in the relevant geographical area.

             The real estate market is a complex structure on a transaction between entities about the real estate.

             As subjects of transactions in the property market on the one hand may make the owners - the sellers of the object,  landlords, lenders, etc., on the other - the users - the buyers of the property, tenants, etc.

             Since the properties are inseparable from the land on which are located, and are exposed to the physical environment, the property market is localized. Moreover, given the variety of users' needs and availability of resources, the property market can be segmented according to the following parameters:

             - for use - for residential property , commercial, industrial and agricultural purposes;

             - by economic and geographical factors - for each area may be the real estate market with its market conditions;

             - the purchase price;

             - the quality of the object - Class A office space may belong to an entirely different market segment than the Class B office space , although both can be on the same street;

             -în investment incentives - some investors may be interested in the property, requiring minimal management , others - may acquire objects that represent good tax shelter , which are characterized by positive cash flow ;

             -the type of property rights - unlimited property rights , easements .

Other features of the real estate market include:

             -determination of the price of the object is determined, as a rule, by supply and demand on the part of a small number of participants;

             -low elasticity of supply of real estate, ie even if demand increases and the price will go up very quickly it will be difficult to increase the amount of usable real estate on the market , taking into account the time factor of the construction process;

variability of demand in the property market , depending on several factors, such as, for example , the construction of large-scale industrial production, facilitating the flow of labor , housing , shopping and other facilities, while the lack of funding of mortgage lending and high interest rates have reduced demand for real estate.

             Property management is a particular case management as a focused, integrated, systematic exposure of the subject to his control in order to achieve and maintain the state of the effective functioning of the facility in accordance with the criteria definable entity management. In this sense, the management of real estate subject to the general laws of the management.

             Management of real estate (property management) - Implementation of a set of operations on the operation of buildings and structures (keeping them in working order , repair , maintenance services , management Serviced staff , enabling users (tenants) , conditions of delivery space for rent , rent collection and etc.) for the most efficient use of real estate in the interest of the owner.

             In this case, the activity of real estate management is carried out in three aspects - legal, economic and technical.

             The legal aspect of property management is the most rational use, distribution, and combining the right to property.

             The economic aspect of the property management is implemented through the management of income and expenses that are formed during the operation of real estate.

             The technical aspect of management is to maintain control object in working condition in accordance with its functional purpose.

             The variety of properties , their mutual relationship with each other utilities , the unity of the territory belonging to one owner , etc. determine the presence of different levels in the management of real estate . Thus, in the city can be identified:

             - management of individual real estate assets;

             - property management;

             - management of geographically - property complex of the city as a whole.

At the level of the range of tasks that need to be addressed in the management of real estate , is further increased . It includes:

             - creation of conditions for the activities of organizations and enterprises for the operation of the city as a socio- economic unit ;

             - to ensure the development of individual areas in the interests of the comprehensive development of the city as a whole;

             - formation of the revenue side of the budget and minimizing costs related to real estate , to ensure a high level of business activity in the city ( to maximize the amount of product produced in the city ), and at the same time addressing social problems.

             From the point of view of the role of real estate in the interest of the owner of all real property can be divided into two classes:

             - the real estate occupied by the owner and used them to conduct certain activities - production , administrative, educational , etc. (operating real estate);

             - property used for income in the form of rents and capital gains ( investment properties ).

             Real estate is one of the resources used in the course of business, and management of real estate is one of the areas of business management.

             The starting point of the property management as a separate subsystem in the system of enterprise management - identification of needs in the quantity and quality of real estate - land, buildings, structures and premises necessary for the realization of the goals and plans, facing the company.

             This object is divided into a number of issues:

             -determination of the number of different types of real estate necessary for the operation of the enterprise;

             - to define the quality required of real estate ( for planning, durability, fitness for specific needs of the enterprise);

             - the definition of requirements by location property .

Property management in the enterprise management system must ensure compliance with the real estate used by the company (quality, quantity, location, and costs), targets the enterprise and its most efficient use.

             Experience in real estate management companies in foreign countries shows the presence of a number of methods to improve the efficiency of the use of property in their possession.

             Methods to improve the operating efficiency of real estate aimed at bridging differences in order between the parts of the organization providing property management, and units engaged in it. Among these methods are:

             a) Audit of real estate.

             b) The market test .

             c) Service agreement .

             g ) Internal leases.

             Some buildings are necessary for the organization of the enterprise, but are ineffective in terms of long-term investment goals. Other buildings may not be very useful for the activity, but are good for investment and income from their operation. With the most efficient use of real estate options can be distinguished:

             The building, which is necessary to own and occupy (as good for investment and operations);

             -buildings, which may occupy, but not own, because they are good for the current activity , but do not have the investment potential in the long term;

             -buildings, which may have in the property from an investment point of view.

             Investment property is a separate asset, requiring management to generate income from its use.

             The main objectives of management of investment properties are as a rule:

maximization of profits;

             -maximize the value of the property.

             Activities of real estate management is more complex and varied

             - nalysis of the project, its technical and economic expertise with the findings and conclusions ;

             - the analysis of supply and demand in the market;

             - definition option is the most efficient use of the facility;

             - analysis of the target market ;

             - determination of the level of rent;

             - the determination of the operating costs ;

             - development of a promotion plan subject to market;

             - development of a plan of work to the staff working on the operation of the facility ;

             - development of a plan of work with tenants;

             - Preparation of the draft plan of income for the project ( budget item).

             Relationship Manager with the owner form the basis of the manager, asked directions of its activities, prioritizing.

             These relationships are focused on:

             - real estate management objectives (profit , increasing the value of the property, preservation of property , minimize costs, etc.) ;

             - determination of the distribution of powers in the real estate management between the manager and the owner (contracts with tenants , contractors , making decisions about the repair , modernization, reconstruction of the object , etc.);

             - define and order the distribution of income from real estate (periodicity of income by the owner, a way of rewarding the manager, the composition and formation of special funds, etc.).

             Generation of income and expenses in the management of the property. Income and expenses , which are formed in the management of real estate assets are stated number of indicators , each of which has its own importance for the understanding of the main activities of the managing director.

             Key indicators reflecting the formation of income and expenses in the management of real estate:

             a) the potential gross income ;

             b) the effective gross income ;

             c) operating costs ;

             d) net operating income.

             The potential gross income (PVD) - the total rental fee, which can be obtained from the constant and complete delivery of the property to be rented without regard to losses and expenses.

             The potential gross income shall be reduced in the calculation of the income from the property by the amount of losses from non- employment areas , rental benefits and losses from unscrupulous tenants.

Factors that increase the value of LDPE.

             These factors include the provision of services for car parking provision of telecommunications services (eg , connection to data networks ) , the provision in the rental of furniture, office equipment, etc. , to provide services for the protection of premises etc.

             The real ( effective ) gross income ( DIA ) of the property is a potential gross income, adjusted for employment is not for sale, losses from unscrupulous tenants, rental benefits, other income from the property.

             Through the effective gross income must first be reimbursed operating expenses. Operating costs - ensuring the normal operation of the facility in accordance with its intended use and, accordingly, to ensure the reproduction of the actual gross income.

             In operating expenses include actual and ongoing costs of maintenance facility in working condition . Operating costs differ significantly from such well-known concepts as "cost ". The main difference is the absence in operating expenses such articles as "depreciation".

             Operating costs, as well as the consumption of any entity can be divided into fixed and variable.

             Under the fixed costs are understood expenses that do not depend on the load (employment) of the object. These traditionally include property taxes, property insurance expenses. In addition to the fixed costs is part of the operating costs.

             Variable costs - the amount of which is directly dependent on the load of the object. The composition of the variable costs depend on the functional purpose of the building, its class, the traditional set of services provided to tenants , and includes :

             - the core part of management;

             - utilities ;

             - the cost of staff salaries (with taxes and charges);

             - the cost to attract tenants and lease agreements (advertising, legal fees );

             - expenses related to the maintenance and repair of space facilities;

             - the cost of security;

             - costs of the territory;

             - provision and replacement.

Provision for replacement - a reserve for the costs associated with the replacement of those parts of the building and equipment belonging to the building, which is the relatively short period of time and therefore must be periodically replaced. They are:

- roofing, flooring , trim elements;

- plumbing, electrical equipment and fittings;

- furniture, etc.

In the operating expenses do not include expenses manager or owner, not directly related to the operation of real estate , such as taxes on his income , the cost of his personal insurance , etc.

Net operating income (CHOD) is the difference between the actual income from real estate and operating costs on the content of the property.

On the basis of net operating income can be generated indicators such as cash flow before tax (PBT) PBT = CHOD - capital expenditures - debt service.

On the basis of the indicator can be defined PDN ultimate effectiveness of management of the property, which is determined by return on equity (net profit):

DSC = PDN + income taxes

The work was studied monitoring the real estate market and its use in the management of real estate.

So, the real estate market is an essential component in any national economy, because the real estate - the most important part of the national wealth, which accounts for over 50% of the world's wealth. Without the real estate market may not be the market at all, as the markets for labor, capital, goods and services for the implementation of the statutory activities must have (or rent) the necessary facilities.

The real estate market - is a specific set of mechanisms by which the rights are transferred to property and related interests, set prices and allocated space between competing land use options.

The importance of the domestic real estate market as a sector of the economy is confirmed by its high share in the gross national product, a high level of income to the budget from the initial sale, lease of state and municipal property (including land), a high level of fees in the budget from property taxes and deals with it.

From the point of view of business and commercial real estate market activity has its advantages and disadvantages. The real estate market has many features and is an integral part of the market space.

All markets, despite the obvious differences, have a common starting economic substance. Supply and demand model simplifies reality, focuses on these essential features.

             The activities of the property manager needs effective interaction not only with the property owner and the user as the main subjects of the real estate market, but also with contractors who carry out cleaning and repairs of the property, supply electricity, water, heat. The duties of the control is to create their own team of workers entrusted to serve.

             Systems management of non-residential real estate - is making decisions aimed at a more complete and efficient use of non-residential premises and documentation in respect of property rights associated with these objects

             Property management is a particular case management as a focused, integrated, systematic exposure of the subject to his control in order to achieve and maintain the state of the effective functioning of the facility in accordance with the criteria definable entity management. In this sense, the management of real estate subject to the general laws of the management.

             At the same time, the management of real estate is one of the most important powers of the owner, and for bringing a professional manager and acts as a special kind of business.

Management of real estate (property management) - Implementation of a set of operations on the operation of buildings and structures (keeping them in working order, repair, maintenance services, management Serviced staff, enabling users (tenants), conditions of delivery space for rent, rent collection and etc.) for the most efficient use of real estate in the interest of the owner.

In this case, the activity of real estate management is carried out in three aspects - legal, economic and technical.

The legal aspect of property management is the most rational use, distribution, and combining the right to property.

The economic aspect of the property management is implemented through the management of income and expenses that are formed during the operation of real estate.

The technical aspect of management is to maintain control object in working condition in accordance with its functional purpose.

The variety of properties, their mutual relationship with each other utilities, the unity of the territory belonging to one owner, etc. determine the presence of different levels in the management of real estate.

 

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