Property Investment Appraisal. Andrew E. Baum

      1  Cover

      2  Title Page

      3  Copyright

      4  Preface

      5  1 Property Investment Appraisal in its Context 1.1 What is Appraisal? 1.2 The Appraisal Process 1.3 What Makes a Good Appraisal? 1.4 Conventional and Discounted-Cash-Flow Approaches to Appraisal

      6  2 Principles of Investment Analysis 2.1 Introduction 2.2 Types of Investments 2.3 Qualities of Investments 2.4 Sources of Risk 2.5 Comparing Investments: NPV and IRR 2.6 Initial Yield Analysis and Construction 2.7 Summary

      7  3 The DCF Appraisal Model 3.1 The Cash Flow Model 3.2 The Inputs 3.3 The Discount Rate 3.4 Examples 3.5 Summary Notes

      8  4 The Evolution of Freehold Market Valuation Models 4.1 Introduction 4.2 The Evolution of Conventional Techniques 4.3 Rationale of the Pre-1960 Appraisal Approach 4.4 The Post-1960 Conventional Market Valuation Model 4.5 Conclusions

      9  5 Contemporary Freehold Market Valuations 5.1 Introduction 5.2 Analysing Transactions 5.3 Full Explicit and Short-cut DCF Valuation Models 5.4 Alternatives to DCF 5.5 Reversionary Freehold Valuations 5.6 Over-rented Contemporary Model Valuations 5.7 Summary

      10  6 Freehold Market Valuations – Applications 6.1 Introduction 6.2 Analysis of Transactions 6.3 Rack Rented or Vacant Property Investments 6.4 Two-Stage Reversionary Freeholds 6.5 More Complex Reversionary Freeholds 6.6 Comparing Conventional and Contemporary Techniques 6.7 Taxation and Market Valuation 6.8 Conclusions

      11  7 Leasehold Valuations 7.1 Introduction 7.2 The Evolution of Conventional Leasehold Valuations 7.3 Contemporary Leasehold Valuations 7.4 Conventional Versus Contemporary Techniques 7.5 The Limitations of the Contemporary Models for Leaseholds 7.6 Taxation and the Market Valuation of Leaseholds 7.7 Conclusions

      12  8 Measurement and Pricing of Risk in Appraisals 8.1 Introduction 8.2 Nature and Sources of Risk 8.3 Measuring Risk 8.4 Risk Pricing 8.5 Summary Notes

      13  9 Development Appraisal 9.1 Introduction 9.2 Valuation Methods 9.3 Developer's Profit 9.4 Changes in Costs and Values and Phasing of Developments 9.5 Finance 9.6 Conclusion Notes

      14  10 Bank Lending Appraisals 10.1 Introduction 10.2 The Bank Lending Valuation Problem 10.3 Market Value 10.4 Mortgage Lending Value 10.5 Basel III Definition of Long-term Value 10.6 Investment Value 10.7 Illustration of the Three Established