Property Valuation Principles (Building & Surveying)

Cover......Page 1
Contents......Page 6
Preface......Page 9
Acknowledgements......Page 11
Part 1 Valuation and Markets......Page 12
1.1 Principles of property investment......Page 14
1.2 Property appraisal: market valuation and investment analysis......Page 22
1.3 Prices and values......Page 23
1.4 Traditional property valuation......Page 24
2.1 The qualities of an investment......Page 31
2.2 Characteristics of property as an investment......Page 33
2.3 Property investment compared with other investments......Page 37
3.1 The property market......Page 39
3.2 What affects property values?......Page 42
3.3 Legal aspects......Page 44
3.4 Investment in property......Page 46
4.1 The process of valuation......Page 51
4.2 Types of valuation......Page 53
4.3 Market valuation and the 'Red Book'......Page 56
4.4 Sources of information for the valuer on the Web......Page 63
Part 2 Methods of Valuation......Page 66
5.1 The five methods......Page 68
5.2 The profits method......Page 70
5.3 The contractor's method......Page 75
6.1 The investment method of property valuation......Page 80
6.2 The valuation of freehold interests......Page 86
6.3 The tables used in the investment method......Page 92
6.4 Exercises in the investment method......Page 95
7.1 Introduction......Page 100
7.2 The residual valuation......Page 107
7.3 The decision to redevelop or refurbish......Page 113
7.4 Costs-in-use......Page 114
Part 3 The Investment Method......Page 118
8.1 A critique of the traditional methods of valuation......Page 120
8.2 Capital appraisal techniques......Page 123
8.3 Discounted cash flow approaches......Page 127
9.1 Term and reversion......Page 136
9.2 Leasehold property......Page 140
9.3 Hardcore method......Page 151
9.4 Over-rented property......Page 156
10.1 Interest rates, risk and inflation......Page 159
10.2 The equivalent yield......Page 162
10.3 The equated yield......Page 165
10.4 The implied growth rate......Page 167
Part 4 Taxation and Statutory Valuations......Page 172
11.1 Introduction......Page 174
11.2 The conventional approach to valuation......Page 176
11.3 Net-of-tax valuations......Page 179
12.1 Business tenancies......Page 183
12.2 Landlord and tenant valuations......Page 185
12.4 Rating......Page 192
Part 5 The Development Appraisal and Finance......Page 194
13.1 The detailed residual valuation......Page 196
13.2 The calculation of the development profit......Page 199
13.3 Sensitivity and risk......Page 200
14.1 Introduction......Page 207
14.2 Categories of finance......Page 214
14.3 Sources of finance......Page 217
14.4 Lending criteria......Page 221
15.1 Company financial statements......Page 226
15.3 Techniques for analysis......Page 232
15.5 The regulation of accounts......Page 237
Bibliography......Page 240
C......Page 246
I......Page 247
P......Page 248
Z......Page 249