Home Page Icon
Home Page
Table of Contents for
Property Valuation, 3rd Edition
Close
Property Valuation, 3rd Edition
by Peter Wyatt
Property Valuation, 3rd Edition
Cover
Title Page
Copyright Page
Preface
About the Companion Website
Section A: Valuation Principles
Section B: Valuation Approaches and Methods
Section C: Valuation Application
Appendix AppendixLand Uses and Valuation Methods
Glossary
Index
End User License Agreement
Search in book...
Toggle Font Controls
Playlists
Add To
Create new playlist
Name your new playlist
Playlist description (optional)
Cancel
Create playlist
Sign In
Email address
Password
Forgot Password?
Create account
Login
or
Continue with Facebook
Continue with Google
Sign Up
Full Name
Email address
Confirm Email Address
Password
Login
Create account
or
Continue with Facebook
Continue with Google
Prev
Previous Chapter
Cover
Next
Next Chapter
Title Page
Table of Contents
Cover
Title Page
Copyright Page
Preface
About the Companion Website
Section A: Valuation Principles
Chapter 1: Property Rights and Property Value
1.1 Property rights
1.2 Property value
1.3 Property valuation
References
Note
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
2.5 Location and land use
2.6 Economics of property development
2.7 Non‐market concepts of value
References
Notes
Chapter 3: Property Markets
3.1 Introduction
3.2 Property markets
3.3 Property markets interaction
References
Note
Chapter 4: Valuation Mathematics
4.1 Introduction
4.2 The time value of money
4.3 Single‐sum investments
4.4 Multi‐period investments
4.5 Timing of receipts
4.6 Yields
4.7 Rates of return
4.A Appendix 4A
4.B Appendix 4B
References
Questions
Answers
Notes
Chapter 5: Valuation Process and Governance
5.1 Valuation process
5.2 Valuation governance
5.3 Valuation systems
5.4 Conclusion
References
Notes
Section B: Valuation Approaches and Methods
Chapter 6: Market Approach
6.1 Introduction
6.2 The comparison method
6.3 Hedonic regression method
References
Questions
Answers
Notes
Chapter 7: Income Approach
7.1 Introduction
7.2 Income capitalisation method
7.3 Discounted cash‐flow method
7.4 Profits method
References
Questions
Answers
Appendix
Notes
Chapter 8: Cost Approach
8.1 Introduction
8.2 Replacement cost method
8.3 Residual method
References
Questions
Answers
Notes
Section C: Valuation Application
Chapter 9: Valuation of Investment Property
9.1 Introduction
9.2 Analysis of rents
9.3 Analysis of yields
9.4 Market valuation of investment property
9.5 Investment valuation of investment property
References
Questions
Answers
9.A Appendix: valuation of residential dwellings let on long leases
Notes
Chapter 10: Valuation of Development Property
10.1 Introduction
10.2 Market valuation of development property
10.3 Investment valuation of development property
References
Questions
Answers
10.A Appendix – example development cash flow
10.B Appendix: contaminated land
Chapter 11: Valuations for Financial Statements and for Secured Lending
11.1 Valuing property for financial statements
11.2 Valuing property for secured lending purposes
References
Questions
Answers
11.A Other circumstances where valuations are required for financial statements in the United Kingdom
11.B Valuation of a hotel refurbishment for secured lending purposes
Note
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
12.4 Land and property taxation in England and Wales
References
Questions
Answers
Notes
Chapter 13: Valuations for Expropriation
13.1 Introduction
13.2 Valuation for expropriation
13.3 Valuations for compulsory purchase and planning compensation in England
13.4 Planning compensation in England
References
Questions
Answers
Notes
Chapter 14: Valuation Variance, Risk and Optionality
14.1 Introduction
14.2 Valuation accuracy and valuation variance
14.3 Analysing risk
14.4 Flexibility and options
14.5 Uncertainty
References
Questions
Answers
Appendix AppendixLand 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
References
Notes
Glossary
Index
End User License Agreement
List of Tables
Chapter 3
Table 3.1 Desirable attributes of office space.
Chapter 4
Table 4.1 Frequently used notation.
Table 4.2 Return on and of capital.
Chapter 5
Table 5.1 Reasons for commissioning a property valuation.
Table 5.2 Minimum items for terms of engagement.
Table 5.3 Typical inspection and information requirements.
Table 5.4 Minimum valuation report content.
Chapter 6
Table 6.1 Hierarchy of evidence (based on RICS, 2019).
Table 6.2 Urban area data.
Table 6.3 Comparable evidence schedule.
Table 6.4 Weighting of comparable evidence.
Table 6.5 Adjustments to elements using the comparison method of valuation....
Table 6.6 Comparison valuation using quantitative and qualitative approache...
Table 6.7 Extract of sample of data points.
Table 6.8 Coefficients calculated using SPSS.
Table 6.9 Residuals statistics.
Table 6.10 Expanded data set.
Table 6.11 Frequency of observations.
Table 6.12 Correlation matrix.
Table 6.13 Model summary.
Table 6.14 Coefficients.
Table 6.15 Residuals statistics.
Table 6.16 Case‐wise diagnostics (dependent variable: price:000s).
Chapter 7
Table 7.1 Geared leasehold profit rents.
Table 7.2 Value‐significant factors for trade‐related properties.
Table 7.3 Information extracted from hotel accounts.
Table 7A.1 Variation in capital values of petrol stations depending on thro...
Table 7A.2 Value attributes of data centres.
Chapter 8
Table 8.1 Typical professional fee levels.
Chapter 9
Table 9.1 Advantages and disadvantages of turnover leases.
Table 9.2 Investment valuation information requirements.
Chapter 11
Table 11.1 International accounting standards applicable to property or pro...
Table 11.2 Tenancy schedule.
Chapter 12
Table 12.1 A categorisation of land and property taxes.
Table 12.2 Council Tax bands in England.
Chapter 14
Table 14.1 Sensitivity analysis – impact on land value.
Table 14.2 Break‐even analysis.
Table 14.3 Scenario modelling.
Table 14.4 Risk and discrete probability modelling.
Table 14.5 Stochastic variable value selection.
Table 14.6 Summary statistics.
List of Illustrations
Chapter 1
Figure 1.1 Legal estates in a property.
Chapter 2
Figure 2.1 Short‐run supply of and demand for property rights.
Figure 2.2 Equilibrium price determination with a fixed supply of land.
Figure 2.3 Elastic supply and elastic demand.
Figure 2.4 Rents for land in the central area under conditions of inelastic ...
Figure 2.5 Industrial land rents on the edge of an urban area under conditio...
Figure 2.6 Equilibrium analysis of rent for office space.
Figure 2.7 Optimum combination of land and capital.
Figure 2.8 Demand and its effect on rent and intensity of land use: intensiv...
Figure 2.9 von Thünen's single‐use revenue and cost model. Adapted from Harv...
Figure 2.10 von Thünen's two‐use revenue and cost model. Adapted from Harvey...
Figure 2.11 Land‐use bid‐rent theory. Adapted from Harvey and Jowsey, 2004
Figure 2.12 Bid‐rent curves. Adapted from Harvey and Jowsey, 2004
Figure 2.13 Alonso's bid‐rent concept.
Figure 2.14 Optimum development density.
Figure 2.15 The economic life of a building.
Chapter 3
Figure 3.1 Property market cycle.
Figure 3.2 The four‐quadrant model of property markets. Modified from DiPasq...
Chapter 4
Figure 4.1 Compounding and discounting.
Figure 4.2 Compounding.
Figure 4.3 Discounting.
Chapter 5
Figure 5.1 Key components of valuation systems.
Chapter 6
Figure 6.1 Location of subject property and comparable properties.
Figure 6.2 Shop shapes.
Figure 6.3 Zoning shops.
Figure 6.4 Shop shapes.
Figure 6.5 Regression line of
y
on
x
.
Figure 6.6 Frequency distribution of sale prices.
Figure 6.7 Linear relationship between sale price and rent.
Figure 6.8 Histogram of dependent variable (Price £000).
Figure 6.9 Normal P–P plot of regression standardised residuals for dependen...
Figure 6.10 Scatterplot of standardised residuals against predicted values o...
Figure 6.11 Scatterplot (dependent variable: price).
Figure 6.12 Histogram (dependent variable: price).
Figure 6.13 Normal P–P plot of regression standardised residual (response va...
Chapter 7
Figure 7.1 Income profile of a rack‐rented property investment.
Figure 7.2 Term and reversion valuation.
Figure 7.3 Core and top‐slice valuation.
Figure 7.4 Freehold and leasehold capital values over time.
Figure 7.5 Rental growth.
Figure 7.6 Rental growth between rent reviews.
Chapter 8
Figure 8.1 Accounting for depreciation.
Figure 8.2 Build‐up of costs over time.
Chapter 9
Figure 9.1 Events timeline.
Figure 9.2 Events timeline.
Figure 9.3 Over‐rented property.
Chapter 12
Figure 12.1 Monopoly or economic rent.
Figure 12.2 Land and property taxes.
Figure 12.3 Types of LVC.
Chapter 13
Figure 13.1 Development value.
Chapter 14
Figure 14.1 Valuation probability distribution.
Guide
Title Page
Copyright
Preface
About the Companion Website
Table of Contents
Begin Reading
Appendix Land Uses and Valuation Methods
Glossary
Index
WILEY END USER LICENSE AGREEMENT
Pages
iii
iv
xi
xii
xiii
xv
1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
129
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
271
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
533
534
535
536
537
538
539
540
541
Add Highlight
No Comment
..................Content has been hidden....................
You can't read the all page of ebook, please click
here
login for view all page.
Day Mode
Cloud Mode
Night Mode
Reset