In today’s market, relying on untimely or incomplete data to make real estate investment decisions can have catastrophic consequences. Market data is hard and expensive to get—and especially so in developing countries.
And yet, with all the uncertainty surrounding the quality of data used to perform feasibility studies and valuations, analysts never fail to report IRRs and ROEs to two decimal points—giving a false illusion of high precision.
You probably have heard the expression GIGO—Garbage in, Garbage out. The point is, an IRR or