Introducing Property Valuation
Michael Blackledge
- 482 páginas
- English
- ePUB (apto para móviles)
- Disponible en iOS y Android
Introducing Property Valuation
Michael Blackledge
Información del libro
This new edition of bestselling textbook Introducing Property Valuation provides students with a comprehensive introduction to the concepts and methods of valuing real estate, helping them to progress successfully from basic principles to a more sophisticated understanding.
Taking a practically oriented rather than purely theoretical approach, the textbook equips readers with the skills to undertake their own valuation calculations. Fully updated to reflect recent developments in regulation and practice, experienced tutor and valuer Michael Blackledge demonstrates how the principles can be applied in professional practice in line with the requirements and guidance provided by the International Valuation Standards Council and the Royal Institution of Chartered Surveyors. Online material accompanies the new edition with Q&As and pre-programmed excel spreadsheets enabling students to prepare their own calculations.
The five traditional methods of valuation are outlined and the practical applications of the two main approaches, the comparison and investment methods, are fully explored. The use of discounted cash flow and quarterly in advance calculations, topics which are not always adequately covered elsewhere, are also explained. Accessibly written with a full range of worked examples, case studies, clear chapter summaries and extensive further reading suggestions, this book is essential for any student of real estate and its valuation.
Preguntas frecuentes
Información
Background
Chapter 1
Economic context
- What is property valuation and why might property need to be valued?
- The different types of value that may apply to a property and distinguishing between the terms value, price, worth, cost and market value.
- How the economic forces of supply and demand and the special characteristics of the property market determine the price and value of property.
- Why land use develops in recognisable patterns and how this may affect types of property within a region and its value.
- What constitute the investment and property markets?
- The range of UK taxes that affect property and their basis of assessment.
- How town and country planning legislation and decisions affect land allocation and use; how this influences values and why this can be justified.
1.1 Why is a valuation needed?
- To buy or sell;
- To let or take a lease or agree a rent review;
- To assess tax or business rates payable;
- For insurance;
- To obtain a compensation payment;
- To borrow money using the property as ‘security’;
- To show its value as a fixed asset on a company balance sheet;
- To develop or redevelop.
1.2 What types of property value are there?
- Freehold value
- Leasehold value
- Asset value
- Alternative use value
- Annual value
- Before and after value
- Book value
- Break-up value
- Compulsory purchase value
- Depreciated value
- Deprival value
- Development value
- Divorce value
- Exchange value
- Existing use value
- Fair value
- Forced sale value
- Going concern value
- Gross development value
- Hope value
- Investment value
- Market value
- Mortgage value
- Permitted development value
- Ransom value
- Rateable value
- Rental value
- Residual value
- Site value
- Speculative value
- Surrender value
- Synergistic or marriage value
- Tax value
- Value in exchange
- Value in use
- Value to the owner
- Zone A value.
1.3 Important terms and concepts – value, price, worth, cost and market value
- Utility – usefulness to potential buyers; the greater its potential for use for different purposes, the greater its utility.
- Scarcity – this does not mean that it literally has to be very scarce, merely that the supply is limited and insufficient to meet total demand.
- Demand – this has to be effective, so that there are potential buyers who wish and are able to purchase.
- Transferability – ownership has to be able to be transferred otherwise it cannot be sold.
a) the most probable price to be paid for an asset in an exchange, or
b) the economic benefits of owning an asset.
- Price – the actual observable exchange price in the open market.
- Value – an estimate of the price that would be achieved if the property were to be sold in the open market.
- Worth – a specific investor’s perception of the capital sum that he/she would be prepared to pay (or accept) for the stream of benefits which he/she expects to be produced by the investment (in other words a subjective rather than objective assessment of value).
- Investment – a return on capital funds. The basic aim is to obtain growth on the invested sum so that this amount becomes larger with time.
- Occupation – for the occupier’s own use and benefit for residential or business purposes.
- Speculation – in the hope of making a profit on expenditure by taking a calculated risk on the spent money based on the premise that in the future a considerably larger sum will be recouped. However, speculation involves risk, and the size and likelihood of financial gain is far more uncertain than on an investment.