Lecture notes
Lecture notes Development funding and finance (APRO708)
- Institution
- University Of Westminster (UOW)
Lecture notes of 3 pages for the course Development funding and finance at UOW (Lecture slides)
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Freehold best but nor amortizingLeasehold - 99 years and less are less attractive.
As ppty gets less attractive you need a higher yield to make it more appealing to investors
Valuation
Capitalisation of cashflow
Petrol station – volume of petrol sold
Pubs – barrels sold
Profits method - hotels , restaurant etc – A specialist valuation will carry it out
Replacement costs used for insurance etc
Residual valuation: needs a valuation of how much it will cost and how much will it cost to build
Capitalization of a cashflow
What is value?
How much someone is willing to pay for it .
Very imbalanced as some companies do research sand a some private buyers just put their hand up.
Not under any undue pressure..? what is undue pressure.
Value in concept
Funds pay above market value. Can use fund deals as open market deals.
Watch out for odd dealers
Valuer can use ahis discretion to use whatever selling period to create value of property. The valuer
can be given the selling period as what they would like to see the property sold. It will be titled
market value subject to special assumptions ie planning accepted, as of today etc
How long is a valuation good for?
-
It doesn’t carry on, it will be a time in relation to when it was carried out
Value v worth
What you can sell it for – value ( affaceted by environmental factors) what anyone else will pay
Worth – how much it solves you problem – what it means to you – what owner will pay
Comparables
Specific , rental value of similar building In commercial or sale orice of similar in resi
Non specific yield of type of building
Residential -Land registry, zoopla, right move (unreliable), Commercial property – Estates gazette,
EGI, Press (is it reliable?) – problems – secrecy and headline rent etc.
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