Property valuation / Peter Wyatt.

Format:

Book

Author/Creator:

Wyatt, Peter, 1968- author.

Standardized Title:

Property valuation : in an economic context

Language:

English

Subjects (All):

Commercial real estate--Valuation--Great Britain.

Commercial real estate.

Real estate investment--Great Britain.

Real estate investment.

Physical Description:

1 online resource (559 pages)

Edition:

Third edtion.

Place of Publication:

Hoboken, New Jersey : Wiley, [2023]

Summary:

"Real estate is an essential part of life, providing the buildings for living, working, learning and leisure activities. Non-domestic real estate is comprised of a huge range of buildings, including office, retail, industrial, leisure, medical and hotel properties. In the UK, the commercial real estate sector has a market value of around £1.7 trillion (2019 data) and is one of the fundamental building blocks of the UK economy, directly employing more than one million people and supporting an additional million, while also contributing over £100 billion to the UK's economy each year (about 7% of UK GVA). Worldwide, it is estimated that the value of commercial real estate is around $33.3 trillion, with the US ($8.1t), China ($3.6t), Japan ($2.8t), Germany ($1.7t) and the UK ($1.7t) being the largest markets (2017 data). China also accounts for the largest share of global residential value, thanks to national house price growth and a rapid programme of housebuilding. Emerging markets, especially in Asia, are also experiencing fast growth in both commercial and residential property value"-- Provided by publisher.

Contents:

Cover

Title Page

Copyright Page

Contents

Preface

About the Companion Website

Section A Valuation Principles

Chapter 1 Property Rights and Property Value

1.1 Property rights

1.1.1 Tenure

1.1.2 Property rights in England

1.2 Property value

1.2.1 Extent of property rights

1.2.2 Security of property rights

1.2.3 Physical and geographical characteristics

1.3 Property valuation

1.3.1 Market transactions

1.3.2 Investment decisions

1.3.3 Compensation

1.3.4 Land and property taxation

1.3.5 Accounting, lending and insurance

Note

References

Chapter 2 The Economics of Property Value

2.1 Introduction

2.2 Land as a resource

2.3 Supply and demand, markets and equilibrium price determination

2.4 The property market and price determination

2.4.1 The property market

2.4.2 Price determination in the land market

2.4.3 Price determination in the property (land and buildings) market

2.5 Location and land use

2.6 Economics of property development

2.6.1 Type and density of development

2.6.2 Timing of development

2.7 Non-market concepts of value

Notes

Chapter 3 Property Markets

3.1 Introduction

3.2 Property markets

3.2.1 Occupier market

3.2.2 Investment market

3.2.3 Development market

3.3 Property markets interaction

Chapter 4 Valuation Mathematics

4.1 Introduction

4.2 The time value of money

4.3 Single-sum investments

4.4 Multi-period investments

4.4.1 Level annuities

4.4.2 From a level annuity to a growth annuity

4.5 Timing of receipts

4.6 Yields

4.7 Rates of return

Chapter 5 Valuation Process and Governance

5.1 Valuation process

5.1.1 Confirm instruction and agree terms of engagement

5.1.2 Inspect the property.

5.1.3 Gather and analyse comparable evidence

5.1.4 Establish basis of value

5.1.5 Make assumptions and special assumptions as appropriate

5.1.6 Select valuation approach(es) and method(s) and undertake the valuation

5.1.7 Produce a valuation report

5.2 Valuation governance

5.2.1 Standards of conduct

5.2.2 Valuation process standards

5.2.3 International valuation standards (IVS)

5.2.4 National valuation standards

5.3 Valuation systems

5.3.1 Information systems

5.3.2 Valuation capacity

5.3.3 Professional valuers associations

5.4 Conclusion

Section B Valuation Approaches and Methods

Chapter 6 Market Approach

6.1 Introduction

6.2 The comparison method

6.2.1 Collect comparable evidence of market transactions

6.2.2 Identification of value-significant characteristics

6.2.3 Adjustment of value-significant characteristics

6.3 Hedonic regression method

6.3.1 Simple linear regression

6.3.2 Multiple linear regression

Chapter 7 Income Approach

7.1 Introduction

7.2 Income capitalisation method

7.2.1 Perpetual annuities (freeholds)

7.2.2 Annuities with a term certain (leaseholds)

7.3 Discounted cash-flow method

7.3.1 A discounted Cash-Flow valuation model

7.3.2 Perpetual annuities

7.3.3 Annuities with a term certain

7.4 Profits method

7.4.1 Method

Chapter 8 Cost Approach

8.1 Introduction

8.2 Replacement cost method

8.2.1 Replacement cost

8.2.2 Depreciation

8.2.3 Land value

8.2.4 Application of the replacement cost method

8.2.5 Issues arising from the application of the replacement cost method

8.3 Residual method

8.3.1 Basic residual technique

8.3.2 Basic residual profit appraisal

8.3.3 Discounted cash-flow technique

References.

Section C Valuation Application

Chapter 9 Valuation of Investment Property

9.1 Introduction

9.2 Analysis of rents

9.2.1 Rental lease incentives

9.2.2 Capital lease incentives

9.2.3 'Surrendered' leases

9.2.4 Repairs, insurance, and ground rents

9.2.5 Rent-review pattern

9.3 Analysis of yields

9.3.1 Equivalent yield

9.3.2 Weighted average unexpired lease term

9.4 Market valuation of investment property

9.4.1 Voids and break options

9.4.2 Statutory considerations

9.4.3 Over-rented properties

9.4.4 Turnover leases

9.4.5 Long lease investments

9.4.6 Synergistic value

9.5 Investment valuation of investment property

9.5.1 Inputs and assumptions

9.5.2 Investment valuation using a discounted cash flow

Chapter 10 Valuation of Development Property

10.1 Introduction

10.2 Market valuation of development property

10.2.1 Comparison method

10.2.2 Residual method

10.3 Investment valuation of development property

10.3.1 Estimating the investment value of development property

10.3.2 Financial appraisals of development property

Chapter 11 Valuations for Financial Statements and for Secured Lending

11.1 Valuing property for financial statements

11.1.1 Basis of reporting measurement

11.1.2 Property categorisation

11.1.3 Basis of value

11.1.4 Valuation

11.1.5 Other issues

11.1.6 Example valuations

11.2 Valuing property for secured lending purposes

11.2.1 Professional standards and guidance

11.2.2 Valuation methods for loan security valuations

11.2.3 Example valuation

11.2.4 Reinstatement cost assessment

Chapter 12 Valuations for Land and Property Taxation

12.1 Introduction

12.2 A land tax or a land and property tax?

12.3 Types of land and property taxes.

12.3.1 Occupation taxes

12.3.2 Transfer and wealth taxes

12.3.3 Betterment taxation

12.4 Land and property taxation in England and Wales

12.4.1 Occupation taxes

12.4.2 Transfer and wealth taxes

12.4.3 Betterment taxation in England

Chapter 13 Valuations for Expropriation

13.1 Introduction

13.2 Valuation for expropriation

13.2.1 Valuing property rights that are to be taken or extinguished

13.2.2 Valuing retained property rights

13.2.3 Valuing compensation for disturbance

13.2.4 Valuing customary and informal land for expropriation purposes

13.2.5 Expropriation and non-market value

13.3 Valuations for compulsory purchase and planning compensation in England

13.3.1 Legal background

13.3.2 Compensation for land2 taken (compulsorily acquired)

13.3.3 Identifying the planning position

13.3.4 Compensation for severance and injurious affection

13.3.5 Compensation for disturbance and other losses

13.4 Planning compensation in England

13.4.1 Revocation, modification and discontinuance orders

13.4.2 Purchase notices

13.4.3 Blight compensation

Chapter 14 Valuation Variance, Risk and Optionality

14.1 Introduction

14.2 Valuation accuracy and valuation variance

14.3 Analysing risk

14.3.1 Sensitivity analysis

14.3.2 Scenario modelling

14.3.3 Simulation

14.4 Flexibility and options

14.5 Uncertainty

Appendix: Land Uses and Valuation Methods

A.1 Agriculture and fisheries

A.2 Forests and woodland

A.3 Natural resource extraction - water, minerals and other materials

A.4 Recreation and leisure

A.5 Utilities and infrastructure

A.6 Residential

A.7 Community services

A.8 Land and buildings with (Re)development potential

Glossary

Index

EULA.

Notes:

Previous edtion: 2013.

First edition published as: Property valuation : in an economic context. 2007.

Description based on print version record.

Includes bibliographical references and index.

Other Format:

Print version: Wyatt, Peter Property Valuation

ISBN:

9781119767428

1119767423

OCLC:

1338844524