Property Investment Analysis Report
Property Investment Analysis Report
Content
1 Summary 2
2 The Valuer/Client Relationship and Proposals 2 2.1 Concern 2 2.2 Manllison’s Recommendation 3 2.3 Evaluation 3
3 Valuation Methods, Proposals and Discussion 6 3.1 Research into Valuation Methods 6 3.1.1 All-risks Yield 6 3.1.2 Discount Cash Flow (DCF) Techniques 6 3.1.3 Comparative Analysis Techniques 7 3.1.4 Pricing Structure 8 3.1.5 Profits or Accounting Methodologies 8 3.1.6 Evidence 8 3.2 Discussion of Proposals on Property Investment 9
4 Ownership Interest Valuation 10 4.1 Properties with Trading Potential 11 4.2 Total Earnings Method 11 4.3 Reversionary Investment 12 4.4 Descounted Cash Flow(DCF) 13
5 The Incorporation of DCF into the Proposals 13 5.1 The Incorporation of DCF into the Mallinson Recommendations 13 5.2 The Incorporation of DCF into the Carsberg Recommendations 15
Bibliography 16
1 Summary
Mallinson Report and the Carsberg Report presented the valuation profession with a number of comprehensive and far reaching proposals. If implemented, would represent a significant change in the way in which many valuations and appraisal are to be undertaken, presented and justified. We discussed how these recommendations are incorporated into property investment analysis and the subsequent methods. A case of ownership interest is valued using conventional term and reversion approach and DCF. DCF is further discussed for it is better incorporated into the recommendations.
2 The Valuer/Client Relationship and Proposals
2.1 Concern
The Mallinson report (1994) concerns with the valuers clearly understand the needs of the client at an early stage. The range of client is enormous; there are those who have already and great understanding of property, and those wholly unfamiliar with property, the property market and the terms and concepts used by valuers.
For the variety of clients, it is
Content
1 Summary 2
2 The Valuer/Client Relationship and Proposals 2 2.1 Concern 2 2.2 Manllison’s Recommendation 3 2.3 Evaluation 3
3 Valuation Methods, Proposals and Discussion 6 3.1 Research into Valuation Methods 6 3.1.1 All-risks Yield 6 3.1.2 Discount Cash Flow (DCF) Techniques 6 3.1.3 Comparative Analysis Techniques 7 3.1.4 Pricing Structure 8 3.1.5 Profits or Accounting Methodologies 8 3.1.6 Evidence 8 3.2 Discussion of Proposals on Property Investment 9
4 Ownership Interest Valuation 10 4.1 Properties with Trading Potential 11 4.2 Total Earnings Method 11 4.3 Reversionary Investment 12 4.4 Descounted Cash Flow(DCF) 13
5 The Incorporation of DCF into the Proposals 13 5.1 The Incorporation of DCF into the Mallinson Recommendations 13 5.2 The Incorporation of DCF into the Carsberg Recommendations 15
Bibliography 16
1 Summary
Mallinson Report and the Carsberg Report presented the valuation profession with a number of comprehensive and far reaching proposals. If implemented, would represent a significant change in the way in which many valuations and appraisal are to be undertaken, presented and justified. We discussed how these recommendations are incorporated into property investment analysis and the subsequent methods. A case of ownership interest is valued using conventional term and reversion approach and DCF. DCF is further discussed for it is better incorporated into the recommendations.
2 The Valuer/Client Relationship and Proposals
2.1 Concern
The Mallinson report (1994) concerns with the valuers clearly understand the needs of the client at an early stage. The range of client is enormous; there are those who have already and great understanding of property, and those wholly unfamiliar with property, the property market and the terms and concepts used by valuers.
For the variety of clients, it is
Bibliography: Michael Mallinson et al. 1994. The Mallinson Report-Report of the President’s Working Party on Commercial Property Valuations. The Royal Institute of Chartered Surveyors. Bryan Carsberg et al. 2002. Property Valuation-The Carsberg Report. Andrew Baum, Nein Crosby et al. 2000. The influence of valuers and valuations on the working of the commercial property investment market. Reading and Nottingham Trent Universities. Ann Colborne and Philip C.L. Hall, 1992. The Profits Methods of Valuation. Journal of Property Valuation and Investment, 11: 41-49. Rohit Kishore, 1996. Discounted cash flow analysis in property investment valuations. Journal of Property Valuation & Investment, Vol.14 No.3, pp.63-70. Mackenzie, B. (1993), Discounted cash flow analysis: tests of reasonableness, The Appraisal Journal, January, pp. 138-43. Nick French, 1996. Investment Valuation: Developments from the Mallinson Report. Journal of Property Valuation&Investment. Vol.14 No.5, pp.48-58. Nick French, 2005. Discounted cash flow: accounting for uncertainty. Journal of Property Investment & Finance. Vol.23 No.1, pp.76-89.