Life cycle of a property- the period of time during which real estate exists as a physical object.

The life cycle of real estate acquired for commercial purposes, the position of the owner of the property can be repeated with the new owner of the same property until the end of the life of the property. The life cycle is constantly subject to certain patterns, according to G. Harrison - physical, economic, chronological and remaining economic life.

On time physical life object refers to the time when it is possible to live or work in an existing building or structure. This indicator can be normative, calculated, actual, and can increase due to improved conditions or modernization. If a real estate object is demolished, its physical life ends.

On time economic life This is the period during which the object can be used, receiving - in case of profit, these improvements contribute to the cost of the object. If the improvements made do not make a certain contribution to the value of the property due to the fact that it is outdated, then its economic life ends.

Under chronological age understand the period that has passed from the date the property was put into operation to the date of its assessment.

Service life

The effective age is based on assessing the appearance of a real estate property, its technical condition, and economic factors that influence the total cost of the property.

Effective age- age, which refers to a certain physical state of an object and takes into account the possibility of its implementation.

The typical service life is called the standard service life.

Standard service life— ϶ᴛᴏ service life of buildings or structures, which is defined in regulations.

Under the remaining economic life buildings refer to the period from the date of its valuation until the end of its economic life. This period is used by an appraiser to estimate future income. The remaining economic life of an object is increased by its modernization or renovation.

All the stages of the life cycle and lifespan of real estate objects discussed above are interconnected. The owner of real estate, in order to implement adequate measures that will ensure an increase in the profitability of the property and its safety, must take into account the location of the real estate in a certain (any) stage of the life cycle.

Stages of the life cycle of a real estate property

Thus, real estate objects during the time of their existence are subject to economic, physical, legal changes and go through the following stages of the life cycle:

• formation - ϶ᴛᴏ construction, i.e. creation of a new enterprise, purchase or allocation of land;
• operation - includes operation and development, i.e. expansion, reorganization or reconstruction;
• cessation of existence - ϶ᴛᴏ demolition, natural destruction or liquidation.

Stages of the life cycle of a real estate property:

1. Formation of the project concept and choice of option for using the vacant land plot. During this period, the choice of the best and most efficient use of the land is made. The choice of use case ends with the development of technical specifications for the design of improvements.

2. Designing improvements. At this stage - on the basis of the design specifications - the development of the project is carried out with the preparation of documentation necessary for obtaining permits and preparing the land plot, as well as laying communications, constructing buildings and planting new plantings.

3. Manufacturing (construction, construction) of improvements. During the implementation of the project by contractors, all physical characteristics of the object are almost completely changed, with these changes being recorded in inventory and cadastral documents.

4. Circulation (purchase and sale, donation, rental, etc.) with the transfer of property rights or with the appearance of an encumbrance on the right. At this stage, transactions with the property are carried out.

5. Use (use) of the object for its intended purpose with technical and operational maintenance. At this stage of the life cycle, the manager (or a professional management company) organizes the rational use by users of the consumer potential of the object.

6. Modernization: major repairs, reconstruction, restoration of improvements with possible repurposing (change of functional purpose) of the object. By the way, this stage begins at the moment when the object in its current state can no longer satisfy the modern needs of users and/or if its operation becomes economically ineffective. At this stage, at a minimum, a major overhaul is carried out without changing the planning solution and functional purpose, but with the elimination of removable physical wear and tear and functional obsolescence.

7. Disposal, demolition of improvements, landfill or recycling of materials. The life cycle ends with the demolition of improvements at the end of their economic life. The management company is preparing proposals for setting deadlines and an economically feasible method for demolition of buildings, taking into account the possibility of selling structural elements and materials of liquidated buildings and communications.

The life cycle is a complete sequence of processes in the existence of real estate from commissioning (from creation) to termination. In theory and practice, four types of cycles are distinguished: business, life cycle of a product, type of business and enterprise as a property complex. The cycle duration is influenced by production periods, physical and moral wear and tear, capital capital of the facility, operating conditions, market conditions and other factors. For real estate valuation, it is of interest to consider 2 life cycles of real estate:

1. Life cycle of real estate (product) as a physical object.

2. The life cycle of real estate as a property.

The life cycle of real estate (product) as a physical object consists of 11 stages:

1. Pre-investment stage (analysis of opportunities, justification).

2. Creation, formation (design, construction).

3. Commissioning.

4. Possession and use.

5. Functional, economic obsolescence.

6. Physical wear and tear.

7. Major repairs or reconstruction.

8. Deterioration of consumer properties.

9. Change of functional purpose.

10. End of economic life.

11. Cessation of existence (natural destruction, demolition).

At stages 3 and 11 of the real estate life cycle, a procedure for state registration of rights is required.

The life cycle of real estate as a property can be divided into 10 stages:

1. Acquisition (purchase, construction, inheritance).

2. Possession and use for a certain period.

3. Facility management.

4. Making profit, satisfying needs.

5. Disposal of property and proprietary rights to the object.

6. Multiple changes of owners, owners, users.

7. Changing the functional purpose of the object.

8. Termination of property rights (sale, nationalization, requisition).

9. The end of the economic life of the object.

10. Repeating the previous cycle or building a new, modified one.

At stages 1, 6 and 8 of the real estate life cycle, a procedure for state registration of rights is required.

Real estate objects are subject to physical, legal and economic changes during their existence. As a result, each immovable thing (except land) goes through the following enlarged stages of its life cycle:

Formation – construction, creation of a new enterprise, acquisition (purchase, allocation, etc.) of a land plot;

Operation - operation and development (expansion, reconstruction, change of activity, reorganization, etc.)

Change (possibly multiple times) of owner, owner or user;

Cessation of existence - demolition, liquidation, natural destruction.

The first, third and fourth stages provide for state registration of the fact of creation or liquidation of an object, as well as a change of owner.

The life cycle of real estate follows certain patterns and includes economic, physical, chronological and remaining economic life.

Economic lifespan is a period of profitable use of the property, when improvements made contribute to the value of the property. Good repairs, refurbishment and optimization of conditions increase, but poor maintenance shortens the economic life of the facility. It ends when improvements no longer contribute to the value of the property due to its general obsolescence.

Physical lifespan– this is the period of real existence of an object in a functionally suitable state before its demolition (destruction). It can be normative, actual, calculated (predicted) and increase due to modernization and improvement of conditions.

Effective age based on an assessment of the appearance and technical condition of the building. This is the age corresponding to the actual preservation of the object, its condition at the time of the transaction, evaluation. Effective age may be greater or less than chronological age.

Chronological age– this is the period from the day the object was put into operation until the date of the transaction or valuation.

Remaining economic life of a building is calculated from the date of assessment (analysis) until the end of its economic life. Repairs and refurbishments extend this period.

The physical and economic lifespan of buildings are objective in nature, which can be regulated, but cannot be canceled. All stages of the life cycle and life span are interconnected, and when one of them changes, the others change accordingly.

Life cycle- this is a complete sequence of processes of the existence of real estate from commissioning (from creation) to termination. In theory and practice, five types of cycles are distinguished: business, life cycle of a product, type of business and enterprise as a property complex, as well as real estate as an object of property (diagrams 1.14-1.18). The duration of the cycle is influenced by production periods, physical and moral wear and tear, capital capital of the facility, operating conditions, market conditions and other factors.

Since real estate objects have a triple nature, during the entire period of their existence they are subject to physical, economic and legal changes, respectively. As a result, each immovable thing (except land) goes through the following four enlarged stages of its life cycle:

• o formation - construction, creation of a new enterprise, acquisition (purchase, allocation, etc.) of a land plot;
• o operation - operation and development (expansion, reconstruction, change of activity, reorganization, etc.);
• o change, perhaps more than once, of owner, owner or user;
• o cessation of existence - demolition, liquidation, natural destruction.

The first, third and fourth stages of the life cycle of real estate as a product also provide for state registration of the fact of creation or liquidation of the object, as well as a change of owner.

Life cycle of commercial real estate property, property from the point of view of one current owner, who makes his own subjective journey with the object from purchase, say, to sale or exchange, can be repeated many times, each time with a new owner, until the end of the economic or physical life of the object.

Change of owners of property complexes of enterprises in the process of reforms carried out in Russia, privatization, bankruptcy, transfer of a controlling stake from hand to hand

Scheme 1.14.

accompanied by significant and sometimes destructive changes in organization, management, technology and the basic means of production themselves.

For objects - historical monuments, the physical lifespan is more important, and not the change of owner, ownership

Scheme 1.15.

ca and the user, since they are protected by the state. The use of objects of world and national significance is permitted without violating their cultural and historical functions, and their formation is associated with reconstruction, research and restoration work. Natural complexes - monuments can exist forever. The cessation of the existence of such objects means their inclusion in new, more extensive, historical and cultural complexes or destruction as a result of natural disasters.

Each stage of the real estate life cycle includes a number of stages, events and activities. For example, creating

Scheme 1.16.

Scheme 1.17.

The property complex of an enterprise consists of four main stages, divided into interrelated sections, organizational and legal actions (Table. 1.5).

Organizationally, the creation of an enterprise as a real estate object consists of eight to nine stages.

Scheme 1.18.

The life cycle of real estate is subject to certain laws and includes, as defined by G. Harrison, economic, physical, chronological and remaining economic life.

Economic lifespan is a period of profitable use of the property, when improvements made contribute to the value of the property. Good repairs, refurbishment and optimization of conditions increase, but poor maintenance shortens the economic life of the facility. It is abandoned when improvements no longer contribute to the value of the property due to its general obsolescence.

Physical lifespan- this is the period of real existence of an object in a functionally suitable state before its demolition (destruction). It can be normative, actual, calculated (predicted) and increase due to modernization and improvement of conditions.

Table 1.5. Stages of forming a new enterprise

No.	Searching for a new idea and evaluating it	Drawing up a business plan	Attracting the necessary resources	Control creation enterprises
	Factors for the emergence of a new idea, timing	Market segment, its size and price characteristics	Available resources: money capital, raw materials, equipment, labor, etc.	Organizational structure, group composition, goals, deadlines, stages, constituent documents
	Compliance of the idea with personal goals, knowledge and skills	Marketing plan, production plan of the enterprise and its divisions	Missing resources and potential suppliers	Key success factors and ways to activate them
	Analysis of the real and potential value of an idea	Financial plan and financial support	Ways to attract resources by type	Weaknesses and ways to overcome them
	Risk assessment and benefit forecast	Form of ownership and legal form	Forecasting new sources and suppliers	System of quality control and timing of work
	Comparison with products competitors	Market penetration strategy	Formation of authorized (share) capital	Legal status, licensing, state! this registration

The effective age is based on an assessment of the appearance and technical condition of the structure. This is the age corresponding to the actual preservation of the object, its condition at the time of the transaction, evaluation. For example, when a 60-year-old brick house looks as if it were 18 years old, then its effective age is 18 years. Effective age may be greater or less than chronological age.

Chronological age- this is the period from the day the object was put into operation until the date of the transaction or assessment.

Scheme 1.19.

The remaining economic life of the building is calculated from the date of assessment (analysis) until the end of its economic life. Repairs and re-equipment extend (increase) this period.

The physical and economic lifespan of buildings are objective in nature, which can be regulated, but cannot be canceled. All stages of the life cycle and life span are interconnected and when one of them changes, the others change accordingly (Diagram 1.19).

The location of real estate at one or another stage of the life cycle must be taken into account by the owner in order to implement adequate measures to ensure the preservation and increase of the profitability of the property.

The length of the physical lifespan, the economic and effective age of real estate (except land) depend on the inexorably increasing processes of wear and tear, which have the force of laws of nature.

Scheme 1.20.

State educational institution of higher professional education

St. Petersburg Trade and Economic Institute

In the discipline "Real Estate Economics"

“Features and life cycle of a real estate property”

Completed by: Andreyanova E.V.

Gr. 1410, Faculty of Economics, 4th year

Scientific supervisor

Pirogova O.E.

St. Petersburg, 2010

Introduction

Chapter 1. The concept of real estate and its object

1 Definition of real estate

2 Real estate object

Chapter 2. Features and life cycle of a real estate property

1 Features of the property

2 Life cycle of real estate as a physical object

3 Life cycle of real estate as an economic object

4 Life cycle of an enterprise’s real estate as a property complex

Conclusion

List of used literature

Applications

Introduction

Real estate objects occupy a special place in the system of public relations, since economic activities and priority relations of people in all spheres of their activity are directly or indirectly connected with them.

Today, it is real estate that appears to be the central link in the country’s market economy system. And this is understandable - a piece of real estate is not only a special product, but at the same time it is also capital that generates income and the basis for the provision of services in order to conduct effective business activities.

Real estate economics is a system of relationships that arise in the process of real estate transactions.

Knowledge of the discipline is necessary in the training of modern specialists, since any professional is currently faced in practical activities with the processes occurring in the real estate market.

The main goal of the guidelines is for students to master knowledge about the essence of real estate, legal aspects of the economics of real estate, basic operations and approaches to the valuation of real estate, features of the real estate market and types of business activities on it.

1. The concept of real estate and its object

1 Definition of real estate

The concept of “real estate” is inseparable from another concept – “property”.

Property is a collection of property, i.e. subject to monetary valuation, legal relations in which this person (individual or legal) is located.

Property owned by any individual or legal entity is divided by content into:

· asset: a set of things owned by a person by right of ownership or by virtue of another property right; a set of rights to the actions of others (for example, debt property);

· liability: a set of things that belong to other persons, but are temporarily in the possession of a given person; the totality of obligations incumbent on a given person.

Historically, since the times of Roman law, property has been divided into movable and immovable.

According to Art. 130 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation) “immovable things (real estate, real estate) include land plots, subsoil plots, isolated water bodies and everything that is firmly connected to the land, that is, objects the movement of which without disproportionate damage to their purpose impossible, including forests, perennial plantings, buildings, structures.

Immovable property also includes aircraft and sea vessels, inland navigation vessels, and space objects subject to state registration. The law may classify other property as immovable property.”

Modern Russian legal practice has established a number of criteria by which a physical object can be classified as real estate:

· strong connection with a specific land plot (impossibility of moving an object without disproportionate damage to its purpose);

· completeness in terms of the possibility of being used for its intended purpose;

· certified (officially registered) belonging to a specific owner - the state, a subject of the Federation, a municipality, a private individual or a group of private individuals;

· the possibility of physical isolation of the real estate object and the real estate (i.e. the presence of clearly established physical boundaries of the real estate object);

· functional independence of the real estate object (can this real estate object be used separately from other objects, or does its functional purpose involve partial use of other real estate objects);

· presence (or absence) of easements and other restrictions on use rights.

Items not related to real estate, including money and securities, are recognized as movable property. Registration of rights to movable property is not required, except in cases specified in the law.

2 Real estate object

“Real estate” contains two bases - physical and legal. The physical basis of this concept is based on the material component of real estate, namely: buildings, structures, land plots, subsoil, etc. Anything that “is an object that is connected to the earth in such a way that its movement without disproportionate damage to its purpose is impossible.”

The legal part lies in the area of ​​exercising rights arising from transactions with real estate and its use.

Due to wear and tear, the property loses its liquidity - “the possibility of implementing any method of converting real estate into money” - this is the legal component of the concept.
Each property has its own cadastral number, and a process called “real estate inventory” is applied to it. It is characterized by “inventory” - the history of the emergence and changes of a real estate object. All of the above relates to the legal part of the definition of real estate.

Objects of civil rights include things, including money and securities, other property, including property rights; works and services; information; results of intellectual activity, including exclusive rights to them (intellectual property); intangible benefits.

2. Features and life cycle of the property

1 Features of the property

Having a land plot as a component, all artificial buildings (real estate objects) have generic characteristics that allow them to be distinguished from movable objects. This:

Stationarity, immobility. The sign is characterized by a strong physical connection of the property with the earth's surface and the impossibility of its movement in space without physical destruction and damage, which makes it unsuitable for further use.

Materiality. It should be noted that real estate always operates in physical and value forms. The physical characteristics of a property include, for example, its size and shape, nuisances and hazards, the environment, access roads, utilities, surface and subsoil, landscaping, etc. The totality of these characteristics determines the utility of the property, which forms the basis of real estate value. However, it does not in itself determine the value. Any object has value, having to one degree or another such characteristics as suitability and limited supply. Limited supply must be present to create significant value. Social ideals and standards, economic activities and trends, laws, government decisions and actions, and natural forces influence human behavior, and all of these interact with each other to create, maintain, change, or decrease the value of real estate. It should also be noted here that real estate is one of the few goods whose value is not only almost always stable, but also tends to gradually increase over time.

The durability of real estate is practically higher than the durability of all other goods, except for certain types of precious stones and products made of rare metals.

For example, according to the building codes and regulations (SNiP) in force in Russia, residential projects, depending on the material of the main structures (foundation, walls, ceilings) are divided into 6 groups with standard service lives from 15 to 150 years.

The duration of the earth's circulation, if used correctly, is infinite, and violation of its correct use will lead to irreparable losses.

In addition to the main generic characteristics of real estate, it is possible to distinguish private characteristics that are determined by specific indicators depending on the type of real estate.

It is almost impossible to talk about two identical apartments, two identical plots, two identical buildings, because they will necessarily have differences in location in relation to other real estate objects, to infrastructure and even to cardinal directions, which shows heterogeneity, uniqueness and the uniqueness of each property.

Real estate has increased economic value. This is due to the fact that it is intended for long-term use and is not consumed during use. As a rule, it has a structural complexity that requires high costs to maintain in proper condition.

In addition, a property always has its own functional purpose. It can be productive or non-productive. For production purposes, the property directly or indirectly participates in the creation of products, performance of work, and provision of services. For non-production purposes, it provides conditions for living and serving people.

Real estate always acts as an object of long-term investment. Most often, this is due to the fact that purchasing a property in parts is not possible, since investing capital in a property requires a significant amount of capital. In addition, if we talk about the profitable side of the matter, cash investments in real estate represent expenses with a fairly high payback period.

It should be noted that some types of real estate can be converted into movable property. For example, forests and perennial plantings, by definition, belong to real estate, and harvested timber is already movable property.

Please note that equipment located in buildings and structures (heating, water supply, sewerage, electrical equipment, elevators, grilles, second metal doors, etc.) is classified as movable property. But since it has become an integral part of the real estate object, in the case of a transaction on this object, all movable property included in the real estate should be described in detail (this is especially true for property subject to seizure during the transaction).

Often, real estate transactions may transfer a set of rights and interests that are not part of the real estate. These may be lease rights, preemptive rights, or other interests (easements).

So, real estate includes the most valuable and generally significant objects of fixed assets, and real estate objects such as land and subsoil have great not only economic, but also strategic significance for any state at all times.

For example, in the pre-capitalist period, land was the only significant source of wealth for each individual, as well as for the state and society as a whole.

Real estate in any social system is an object of economic and state interests, and therefore, for this category of property, the mandatory state registration of rights to it has been introduced, which makes it possible to identify the object and subject of law, since the connection between the property and the subject of rights to it is invisible, and the transfer of real estate by physical movement is impossible.

2 Life cycle of real estate as a physical object

Acting as a physical object, real estate is a product, an object of property, business, and goes through various stages and processes in each of its incarnations.

The life cycle of a real estate object (physical) is the period of time during which real estate exists as a physical object. The life cycle of a real estate property consists of the following stages (phases):

Formation of the project concept and choice of option for using the free land plot. During this period, the choice of the best and most efficient use of the land plot is made - taking into account the peculiarities of its characteristics and all the properties of the environment. Based on the analysis, the most productive use option is selected from those that are legally permitted, physically feasible, economically feasible and financially feasible. The choice of use case ends with the development of technical specifications for the design of improvements.

Designing improvements. At this stage - on the basis of the design specifications - the development of the project is carried out (by a specialized organization) with the production of documentation necessary for obtaining permits and preparing the land plot (fixing the shape and size, removing unnecessary natural and artificial vegetation, draining reservoirs) , as well as laying communications, constructing buildings (structures) and planting new plantings. It is advisable to carry out acceptance of the project from the design organization with the participation of the management company that participated in the development of the technical specifications for the design.

Manufacturing (construction, construction) of improvements. During the implementation of the project by contractors, all physical characteristics of the object are almost completely changed, with these changes being recorded in inventory and cadastral documents. During the construction of improvements and as a result of consolidation of the new status of the object, as a rule, the characteristics of the environment related to the created object also change.

Treatment (purchase and sale, donation, lease, etc.) with the transfer of property rights or with the appearance of an encumbrance on this right. At this stage, operations are carried out with the object and the change in the legal fate of the latter is registered by the state. When buying and selling an object, the subject of ownership changes. When the land and/or improvements are leased or hired by the owner (or, on behalf of the owner, by the management company), the rights of use (and, possibly, ownership) are transferred to another entity with the appearance of an encumbrance on the ownership right.

Use (consumption) of the object for its intended purpose with technical and operational maintenance. At this stage of the life cycle, the manager (or a professional management company) organizes the rational use by users of the consumer potential of the object. Over time, the characteristics of the object undergo changes, because improvements physically wear out and become functionally obsolete, which is aggravated by changes in the situation in the economy and in the external physical environment, leading to additional, so-called external obsolescence.

During operation, technical inspection and routine repairs of individual improvement elements are periodically carried out without stopping the use of the facility as a whole.

Modernization: major repairs, reconstruction, restoration of improvements with possible repurposing (change of functional purpose) of the object. This stage begins at the moment when the object in its current state can no longer satisfy the modern needs of users and/or if its operation becomes economically ineffective. At this stage, at a minimum, a major overhaul is carried out without changing the planning solution and functional purpose, but with the elimination of removable physical wear and tear and functional obsolescence.

If the analysis of the best and most efficient use of land and improvements, carried out at this moment, shows the advisability of partially changing the functional purpose of the improvements, then the latter will be reconstructed with a change in the layout of part of the premises. Naturally, at the same time, the functions of major repairs of improvement elements are provided, preserving the original functional purpose.

If an analysis of the use of an object in its existing state shows the need to completely replace its functional purpose, then reconstruction may be accompanied not only by a radical change in the layout, but also by an extension or superstructure of existing buildings and the development of a free part of the land plot.

Disposal, demolition of improvements, landfill or recycling of materials. The life cycle ends with the demolition of improvements at the end of their economic life. The management company is preparing proposals for setting deadlines and an economically feasible method for demolition of buildings, taking into account the possibility of selling structural elements and materials of liquidated buildings and communications (the volume of liquidation costs is minimized).

Obviously, some phases are repeated at different stages of the life cycle. So, for example, the idea of ​​a project to create a new facility can arise both at the stage when a plot of land is completely free, and at the stage when the need arises for reconstruction, partial demolition or completion of buildings. The circulation phase can be realized several times during the life of an object, and the moments of circulation determine the time boundaries of the periods that form the basis of the so-called investment cycles.

3 Life cycle of real estate as an economic object

object real estate property economic

The life cycle of a real estate object is subject to certain patterns and includes the period of economic and physical life

Economic life, which determines the period of time during which an object can be used as a source of profit. The economic life ends when the improvements made no longer contribute to the value of the property.

A typical physical life span is the period of actual existence of a property in a functionally suitable condition before its demolition. Determined by regulatory documents. The physical and economic lifespan of real estate objects are objective in nature, which can be regulated, but cannot be canceled.

Lifetime is the period of time when an object exists and you can live or work in it.

From the point of view of the life period of a real estate property, the following periods are distinguished:

ü Effective age, reflecting the age of an object depending on its appearance and technical condition.

ü Chronological (actual) age corresponding to the period the object has been in operation since its commissioning.

ü The remaining economic life, used for the purpose of assessing an object by an expert appraiser and constituting the period from the date of assessment to the end of the economic life of the object.

The life cycle of real estate as an economic object is as follows:

Creation

State registration of real estate - in the Russian Federation - a legal act of recognition and confirmation by the state of the emergence, limitation (encumbrance), transfer or termination of rights to real estate in accordance with the Civil Code of the Russian Federation.

Possession and use; change of owners. Possession - in civil law - the authority of the owner; actual possession of a thing, creating for the owner the possibility of direct influence on the thing.

Development

Deterioration of consumer properties of real estate

End of economic life

4 Life cycle of an enterprise’s real estate as a property complex

An enterprise as an object of rights is recognized as a property complex used to carry out business activities.

The enterprise as a whole as a property complex is recognized as real estate.

The enterprise as a whole or part of it may be the object of purchase and sale, pledge, lease and other transactions related to the establishment, modification and termination of property rights.

The composition of an enterprise as a property complex includes all types of property intended for its activities, including land plots, buildings, structures, equipment, inventory, raw materials, products, rights of claim, debts, as well as rights to designations that individualize the enterprise, its products, and work and services (trade name, trademarks, service marks), and other exclusive rights, unless otherwise provided by law or contract.

Life cycle of an enterprise as a property complex:

Creation or privatization of an enterprise

State registration of property rights (state, municipal, private, shared ownership). State registration of rights to an enterprise and transactions with it must be carried out in a special manner, determined by the legal specifics of this object. The main feature of the enterprise is the possibility of including land plots and other real estate located in different territories, as well as the possibility of excluding real estate from the enterprise.

Becoming or reaching design capacity

Optimal performance

Change of ownership, private and complete

Reorganization, reform, reconstruction, merger, acquisition

Bankruptcy (optional stage)

Liquidation (optional stage). Liquidation of a property complex is auctions and other mechanisms for the sale of property (including real estate) of a bankrupt organization in accordance with the legal provisions of bankruptcy proceedings.

Termination of functioning: natural non-restorative cessation, physical destruction, deliberate demolition.

Conclusion

In any social system, real estate occupies a special place in the system of social relations, with the functioning of which the life and activities of people in all spheres of business, management and organization are in one way or another connected. It is real estate that forms the central link of the entire system of market relations. Real estate is not only the most important product that satisfies various needs of people, but at the same time it is also capital in real form that generates income.

Real estate is the basis of the country's national wealth, having a massive nature in terms of the number of owners. Therefore, knowledge of the economics of real estate is necessary for successful entrepreneurial activity in various types of business, as well as in the life of any family and individual citizens, since ownership of real estate is the primary basis for the freedom, independence and dignified existence of all people.

List of used literature

1. “Real Estate Economics.” Textbook. Goremykin V. A., Moscow, 2008.

. "Real Estate Economics." Study guide. Asaul A.N. Karasev A.V., Moscow, 2009.

Ozerov E. S. Economics and real estate management. St. Petersburg: Publishing house "ISS", 2006 - 422 p. - ISBN 5-901-810-04-Х

Ignatov L. L. Economics of real estate. Educational and methodological manual. - M.: Publishing house of MSTU im. N. E. Bauman, 2008. - 168 p. - ISBN 5-7038-2174-6

Assessing the operating efficiency of any real estate asset (being constructed or renovated) involves considering it throughout its entire life cycle. The sequence of the real estate process from conception to liquidation (disposal). The life cycle of an object from the moment of feasibility study to the moment of physical or moral aging can be divided into 4 stages:

I. Pre-design and design stages.

1. Rational construction of cost calculations for the entire life cycle.

2. Minimization of operating costs.

The first stage largely determines the efficiency of an object’s functioning. This stage is especially complex and consists of several components.

Pre-design stage - concept stage. It includes:

· analysis of the real estate market;

· selection and approval of the location of the object;

· development of feasibility study;

· attraction of investment funds.

Result: design assignment.

The design stage includes (Article 48 Grad.K):

· engineering surveys;

· architectural and construction design;

· examination;

· registration of initial permitting documentation.

II. Construction of a real estate project.

1. Customer's choice. Project management (it is advisable to start from the first period).

2. Compliance of the capital construction project under construction with the requirements of the real estate market.

3. Selection of a contractor (general contract, subcontract).

4. Construction control.

5. State construction supervision.

6. Issuance of permission to put the facility into operation.

At this stage, real evidence appears of the compliance of the object under construction with the requirements of the real estate market segment, determined by the logic of the life cycle.

III. Operation of the property.

Includes functional and technical operation.

Functional (extracting functional utility in accordance with the design functional purpose and goals of the owner or investor) includes:

· possession and use;

· making a profit, satisfying a need;

· disposal of property;

· change of owners, co-owners, users (with mandatory registration of rights and transactions).

Technical (maintaining the technical condition of real estate, which provides conditions for extracting functional utility at a given level) operation:

· property management (maintenance, repair, replacement);

· changing the functional purpose of the object and its parts;

· repetition or modification of the life cycle;

· end of the economic life of the object.

Operation of real estate objects:

Operation of premises equipment;

Material accounting;

Fire protection, safety precautions;

Communications management (for public buildings);

Recycling, waste processing;

Elimination of emergency situations;

Maintenance and repair.

Operating periods:

A. Operation until full payback;

B. Subsequent operating time for the investment (until the additional costs of eliminating wear and tear do not exceed the benefits of operation)

IV. The stage of closing the object.

This is the complete elimination of its original and acquired functions, resulting in either demolition or a qualitatively new development. This stage requires significant costs for:

Liquidation

Changing an object

Elimination of physical obsolescence.

The value of a piece of land as a vacant one is greater than the value of the land plus the value of the existing facility.

The economic rationale for eliminating improvements is to remove obstacles in the form of existing improvements to more efficient use of the land.

The life cycle of real estate is subject to certain patterns and includes economic, physical, chronological and remaining economic life.

Physical lifespan of an object- the period of actual existence of the property in a functionally suitable condition before its demolition. It happens: normative, actual, calculated.

Economic life span- the period of time during which the object is used as a source of profit.

The lifetime of an object is the period of time during which the object can be used for its functional purpose.

Life periods:

chronological age- period of operation of the facility from the moment of its commissioning;

effective age- age of the object, based on an assessment of its appearance and technical condition;

remaining economic life- the period from the date of valuation until the end of its economic life.