Introducing property valuation

Providing a comprehensive introduction to the basic concepts and methods of valuing real estate this book will provide information for students to successfully progress from absolute basic principles to a more sophisticated understanding of the subject. Economic context -- The property valuation profession -- Investment -- Compounding and discounting -- Sinking funds and mortgages -- Capitalisation -- Alternative valuation tables and formulae -- Methods of measurement -- RICS valuation standards (the "red book") -- Comparison method -- Investment method-traditional -- Investment method-discounted cash flow -- Residual method -- Profits method -- Cost methods -- Landlord and tenant valuations Book Cover......Page 1 Title......Page 4 Copyright......Page 5 Contents......Page 6 Illustrations......Page 11 Cases......Page 13 Acknowledgements......Page 15 Disclaimers......Page 16 PART 1 Background......Page 18 CHAPTER 1 Economic context......Page 20 CHAPTER 2 The property valuation profession......Page 37 CHAPTER 3 Investment......Page 51 PART 2 Valuation mathematics......Page 80 CHAPTER 4 Compounding and discounting......Page 82 CHAPTER 5 Sinking funds and mortgages......Page 95 CHAPTER 6 Capitalisation......Page 105 CHAPTER 7 Alternative valuation tables and formulae......Page 120 PART 3 Valuation methods......Page 132 CHAPTER 8 Methods of measurement......Page 134 CHAPTER 9 RICS valuation standards: The Red Book......Page 141 CHAPTER 10 Comparison method......Page 150 CHAPTER 11 Investment method: Traditional......Page 209 CHAPTER 12 Investment method: Discounted cash flow......Page 257 CHAPTER 13 Residual method......Page 286 CHAPTER 14 Profits method......Page 306 CHAPTER 15 Cost methods......Page 325 PART 4 Applied valuations......Page 336 CHAPTER 16 Landlord and tenant valuations......Page 338 Bibliography......Page 389 Index......Page 400 This comprehensive introduction to the concepts and methods of valuing real estate helps students to progress successfully from basic principles to a more sophisticated understanding. Taking a practically oriented rather than purely theoretical approach, this textbook enables you to undertake valuation calculations yourself. Experienced tutor and valuer Michael Blackledge demonstrates how the principles can be applied in professional practice in line with the requirements and guidance provided by the Royal Institution of Chartered Surveyors. The five traditional methods of valuation are outlined and the practical applications of the two main approaches, the comparison and investment methods, are fully explored. The use of discounted cash flow and quarterly in advance calculations, topics which have often been neglected elsewhere, are also explained. Complete with extensive further reading suggestions, a full range of worked examples, clear chapter summaries and additional online exercises, this book is essential for any student of real estate and its valuation.