Abstract
This study presents a comprehensive comparison between the effectiveness of home purchase and liquid Lazy portfolio strategies for generating historical returns in the Turkish market. The primary aim is to develop a liquid Lazy portfolio that outperforms residential property investments. The study covers the period from January 2010 to June 2023, focusing on high-liquidity assets including the Borsa Istanbul 100 Index, currency exchange rates, gold prices, real estate investment trusts, and major stock market indices. Methodologically, the research involves data pre-processing, logarithmic transformations, and cumulative time series creation. Portfolio optimization centers around maximizing the Sharpe ratio with three test portfolios developed. Findings indicate that all portfolios consistently outperform the benchmark Residential Property Price Index, displaying higher returns and Sharpe ratios despite increased volatility. These insights are relevant for both academic researchers and investors seeking practical applications for portfolio management. It's important to note that historical performance offers insights but not future guarantees. In conclusion, the study highlights the potential benefits of constructing scalable, liquid, and high-return Lazy portfolios as alternatives to traditional home purchases
Keywords
Lazy Portfollio Residential Property Price Index Residential Property Investing Construction Management
References
- Akyol Özcan K. A study on the determinants of the housing price index: Asymmetric co-integration analysis. EKEV Akademi Dergisi 2023; 93: 283–307.
- Amadini, R., Gabrielli M., Mauro J. Sunny: A lazy portfolio approach for constraint solving. Theory and Practice of Logic Programming 2014; 14(4–5): 509–524.
- Engelhardt GV., Eriksen MD., Gale WG. Mills GB. What are the social benefits of homeownership? Experimental evidence for low-income households. Journal of Urban Economics 2010; 67(3): 249–258.
- Gebeşoğlu PF. Housing price index dynamics in Turkey. Yaşar Üniversitesi E-Dergisi 2019; 14: 100-107.
- Hatipoğlu M. Neden konut fiyatları ı̇le enflasyon arasinda nedensellik ilişkisi yoktur. Sakarya İktisat Dergisi 2021; 10(2): 159-166.
- Knight J., Satchell S. A re‐examination of sharpe’s ratio for log‐normal prices. Applied Mathematical Finance 2005; 12(1): 87–100.
- Korkmaz M., Germir HN., Aytaç A. Analysis on home purchase and sales in Turkey: TSI Statistics of 2013-2016. International Refereed Journal of Research on Economics Management 2016; 10: 1–17.
- Şanlı O., Peker O. Effect of inflation, exchange rate, interest rates and income on house sales: A case of Turkiye. Journal of Economic Policy Researches 2023; 10(1): 37–60.
- Yilmaz Y. Causality relationship between stock prices, exchange rate and house price index. Akademik Yaklaşımlar Dergisi 2022; 13(1): 167–185.
- Wolski R. Risk and return in the real estate, Bond and stock markets. Real Estate Management and Valuation 2017; 25(3): 15–22.
- Wong WW., Mintah K., Baako K., Wong PY. Capitalisation rates for commercial real estate investments: Evidence from Australia. Journal of Property Investment & Finance 2023; 41(2): 239–255.
Abstract
Bu çalışma, Türkiye piyasasında tarihsel veriler kullanılarak, getiri elde etmede ev satın alma ve likit Lazy portföy stratejilerinin etkinliği arasında kapsamlı bir karşılaştırma sunmaktadır. Temel amaç, konut yatırımlarından daha iyi performans gösteren likit bir Lazy portföyü geliştirmektir. Ocak 2010-Haziran 2023 dönemini kapsayan çalışma, Borsa İstanbul 100 Endeksi, döviz kurları, altın fiyatları, gayrimenkul yatırım ortaklıkları ve önemli borsa endeksleri gibi yüksek likiditeye sahip varlıklara odaklanmaktadır. Metodolojik olarak araştırma, veri ön işlemeyi, logaritmik dönüşümleri ve kümülatif zaman serisi oluşturmayı içerir. Portföy optimizasyonu, geliştirilen üç test portföyüyle Sharpe oranının maksimuma çıkarılması etrafında yoğunlaşmaktadır. Bulgular, tüm örnek portföylerin sürekli olarak Karşılaştırmalı Konut Emlak Fiyat Endeksi'nden daha iyi performans gösterdiğini, artan oynaklığa rağmen daha yüksek getiri ve Sharpe oranları sergilediğini göstermektedir. Bu bilgilerin hem akademik araştırmacılar hem de portföy yönetimi için pratik uygulamalar arayan yatırımcılar için faydalı olacağı düşünülmektedir. Çalışmayı değerlendirirken, geçmiş performansın öngörüler sunduğunu ancak gelecek garantisi vermediğini unutmamak önemlidir. Sonuç olarak çalışma, geleneksel ev satın alımlarına alternatif olarak ölçeklenebilir, likit ve yüksek getirili Lazy portföyleri oluşturmanın potansiyel faydalarını vurgulamayı amaçlamaktadır.
References
- Akyol Özcan K. A study on the determinants of the housing price index: Asymmetric co-integration analysis. EKEV Akademi Dergisi 2023; 93: 283–307.
- Amadini, R., Gabrielli M., Mauro J. Sunny: A lazy portfolio approach for constraint solving. Theory and Practice of Logic Programming 2014; 14(4–5): 509–524.
- Engelhardt GV., Eriksen MD., Gale WG. Mills GB. What are the social benefits of homeownership? Experimental evidence for low-income households. Journal of Urban Economics 2010; 67(3): 249–258.
- Gebeşoğlu PF. Housing price index dynamics in Turkey. Yaşar Üniversitesi E-Dergisi 2019; 14: 100-107.
- Hatipoğlu M. Neden konut fiyatları ı̇le enflasyon arasinda nedensellik ilişkisi yoktur. Sakarya İktisat Dergisi 2021; 10(2): 159-166.
- Knight J., Satchell S. A re‐examination of sharpe’s ratio for log‐normal prices. Applied Mathematical Finance 2005; 12(1): 87–100.
- Korkmaz M., Germir HN., Aytaç A. Analysis on home purchase and sales in Turkey: TSI Statistics of 2013-2016. International Refereed Journal of Research on Economics Management 2016; 10: 1–17.
- Şanlı O., Peker O. Effect of inflation, exchange rate, interest rates and income on house sales: A case of Turkiye. Journal of Economic Policy Researches 2023; 10(1): 37–60.
- Yilmaz Y. Causality relationship between stock prices, exchange rate and house price index. Akademik Yaklaşımlar Dergisi 2022; 13(1): 167–185.
- Wolski R. Risk and return in the real estate, Bond and stock markets. Real Estate Management and Valuation 2017; 25(3): 15–22.
- Wong WW., Mintah K., Baako K., Wong PY. Capitalisation rates for commercial real estate investments: Evidence from Australia. Journal of Property Investment & Finance 2023; 41(2): 239–255.
Details
| Primary Language | English |
|---|---|
| Subjects | Architectural Engineering, Construction Business |
| Journal Section | RESEARCH ARTICLES |
| Authors | |
| Publication Date | January 22, 2024 |
| Submission Date | September 4, 2023 |
| Acceptance Date | October 23, 2023 |
| Published in Issue | Year 2024 Volume: 7 Issue: 1 |
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