The Performance of PIA Housing Portfolio

Despite extensive studies have examined the risk and return level of housing investment in Australia, the effect of debt financing on housing investment has not been adequately addressed in the real estate literature. This study examines the performance of housing investment from the perspective of housing investors’ equity. Unlike traditional return estimations, debt financing was considered in this analysis. More specifically, it examines the return and risk profile of housing investment from the perspective of housing investors’ equity. To undertake a performance analysis of housing investment from the perspective of housing investors’ equity, a hypothetical housing portfolio was formulated. It is also known as PIA housing portfolio was formulated. The performance of PIA housing portfolio is assessed with a performance analysis. The results are also compared with the overall Sydney units market. Importantly, the effect of debt on the investment performance of the equity position is also considered. Specifically, the performance of the PIA housing equity position is investigated.