Spring/Summer 1990, Vol 15, No 1

Abstract: Most traditional real estate textbooks consider real estate investing to be local in character. The past decade has forced a reconsideration of this view. No longer can we think of real estate investing as confined to local markets or even within national borders. This article extends the traditional capital budgeting model to evaluate real estate. The model considers variations in political risk that may be encountered in foreign countries as well as special taxation risk and foreign exchange risk.