Pricing Real Assets: Terms and Conditions Apply

This paper aims at contributing to the debate on asset pricing by addressing challenging issues that pertain to the real estate market, though their implications can go beyond its scope. Actually, the trend towards increasing globalization has made the trade-off between financial and real assets obsolete, just like the traditional focus on portfolios consisting of securities alone. As a result, a wider approach should be rather adopted, designed to cover total wealth management. Reverse mortgages, rent-to-buy formulas, 1€ houses, home lotteries andreal estate auctions are just a few examples that a realistic, updated framework for analysis can draw upon, based on applicable terms and conditions.