Journal ArticleDOI
The Initial Yield Revealed: Explicit Valuations and the Future of Property Investment
Andrew Baum,Bryan D. Macgregor +1 more
TLDR
In this article, the basic principles of property investment are discussed and an explicit valuation procedure which can be used at any level ranging from a single property to the aggregate market may be constructed.Abstract:
Starts from the basic principles of property investment and shows that the initial yield conceals estimates of a risk premium, expected income growth and expected depreciation. Suggests that an explicit valuation procedure which can be used at any level ranging from a single property to the aggregate market may be constructed. Concludes that the surveying profession is under threat from those able to meet the growing demand for such explicit analyses.read more
Citations
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Journal ArticleDOI
Towards a Coherent Theory of Valuation
TL;DR: In this paper, the grounding of valuation theory in economic theory and the concept of worth are briefly considered, and valuation theory is then considered within finance theory together with the classification of risk influences.
Book ChapterDOI
An Application of Regressed Discounted Cash Flow as an Automated Valuation Method: A Case in Bari
Maurizio d'Amato,Yener Coskun +1 more
TL;DR: In this article, the authors proposed an automated valuation methodology (AVM) procedure to income approach, which is based on the relationship between the discounted cash flow inputs and outputs and determined discount rate and local risk premium in the case of Bari commercial market.
Journal ArticleDOI
Synthesis of Short-Cut DCF Appraisal and Spreadsheet Iteration of Freehold Rental Growth Rates Across Specific Valuation Epochs
TL;DR: In this article, the authors examined alternative spreadsheet and iteration tools that can determine RVGrowth rate of freehold investment properties across rent review epochs, and identified the mathematical composition of RV growth in an explicit DCF framework, performed short-cut DCF Valuation and equivalent yield calculation at specific epochs prior to and including the full reversion; as well as using Goal Seek to calculate RV growth across all epochs before and after the reversion.
Journal ArticleDOI
A Study of Errors Arising from Property Investment Income Capitalization Techniques
TL;DR: In this article, a compendium of the valuers' techniques, such as the Contractor's test, Sales comparison, and the income capitalization, was reviewed and pointed out the probable errors and shortcomings of the most commonly used by them.
Journal Article
The Application of Partial Least Square Regression to Develop a Model for Reliable Investment Valuation Estimates in South-East Nigeria
TL;DR: In this paper, the authors examined the ability of the Estate Surveyors and Valuers to estimate accurately the selling prices of residential properties in South-East Geopolitical Zone of the country with a view to formulate a model for reliable value estimates.
References
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Book
Property investment and the capital markets
TL;DR: In this article, the authors discuss the importance of present value, the effect of risk on present value principal issues diversification and portfolio theory the development of capital market theory the capital asset pricing model relaxing the assumptions tests of the property pricing model property and the market portfolio portfolio portfolio expansion and revision criticisms of risk return measures used in property investment analysis.
Book
Property Investment Appraisal
Andrew Baum,Neil Crosby +1 more
TL;DR: In this article, the authors provide a valuable critique of conventional valuation methods and argue for the adoption of more contemporary cash-flow methods, and explain how such valuation models are constructed and give useful examples throughout.
Book
Property Investment Depreciation and Obsolescence
TL;DR: In this article, the authors propose a depreciation sensitive model for the analysis of property investment, which is based on a new variable called depreciation and obsolescence (DVS) variable.