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Flashcards in Vals Deck (13):
1

Types of investment valuation

Term and reversion
Hardcore
DCF

2

What methods do you have exp in?

Residual method
Comparable
Investment

3

What makes a good comparable

Properties with similar features such as :

Age, location, construction, condition, size, adjacent uses, transport, tenant incentives

4

What RICS guidance for comparable?

RICS comparable evidence 2012

5

What guidance is there out there for valuers

Red book (2014)

6

Five methods of valuation

Investment method
Comparable method
Contractors method (depreciated replacement cost)
Profits method
Residual method

7

What is fair value?

The price that would be received to sell an asset
Not market tested

8

What bases of valuation are there?

Market value
Market rent
Investment value
Fair value
(See VPS 4 - Bases of Value in the red book)

9

What is market rent / value

Defined in VPS4 - bases of value

Estimated amount
Arms length
After proper marketing
Parties acted prudently without compulsion

10

What is WAULT

Weighted average unexpired lease term. Calculated by dividing the sum of all the remaining contractural payments by the annual rent of a property

11

What is the margin of error for vals?

10-15% (Singer v John Wood)

12

Red book sections?

Ps 1
Ps 2 - ethics

VPS 1 - minimum toe
VPS 2 - inspections
VPS 3 - valuation reports
VPS 4 - basis of value

Vpga- specific methods...

13

Red book changes in 2015?

Changes to UK GAAP (generally accepted accounting practices) to reflect new accounting standards.