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Dr Thies Lindenthal

Thies Lindenthal

The Total Return and Risk to Residential Real Estate

This paper estimates the total rate of return to residential real estate investments based on 120,658 hand-collected archival observations of prices, rents, taxes and costs for individual houses in Paris (1809–1942) and Amsterdam (1900–1979).  
The annualized real total return, net of costs and taxes, is 4.2% for Paris and 5.0% for Amsterdam, and entirely comes from rental yields. At the property-level, the yield at purchase is an important determinant of the total holding period return, even for longer holding periods. In the short-term, idiosyncratic risk is the dominant component of total risk, but its importance reduces over time.

Project Update - April 2020


Title of research: Unique Assets, Quality Uncertainty and Noisy Prices

This projects estimates real estate asset uniqueness along previously not quantifiable dimensions, including shape, size, architecture, perceived beauty, maintenance or shape similarity. This richer picture of individual buildings and their comparability to other properties will improve any estimates of fundamental value. More interestingly, though, it will reveal distributions of transaction values in relation to fundamental value. Since uniqueness of the assets co-determines the availability of information from comparable sales, I hypothesise that uniqueness is also linked to the absolute deviations of sales prices from fundamental values: If little is know about fundamental value, then sales prices will contain more noise.

Project Update - April 2019


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NEW VACANCIES - CERF research Assistants/Associates

Dec 19, 2019

We are looking to recruit a Research Assistant/Associate to work at the Cambridge Endowment for Research in Finance (CERF) based in Central Cambridge at the University of Cambridge Judge Business School.

CERF Fellow Dr. Bang Dang Nguyen - paper will be presented at the AFA Annual Meeting 2020 in San Diego

Sep 26, 2019

Political Connections and Firm Value: Evidence from Close Gubernatorial Elections, joint with Q.A. Do (SciencesPo Paris) and Yen-Teik Lee (Curtin University), is accepted and will be presented at the AFA Annual Meeting 2020 in San Diego.

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