Property Investment Appraisal by Andrew E. Baum & Neil Crosby & Steven Devaney

Author:Andrew E. Baum & Neil Crosby & Steven Devaney [Baum, Andrew E. & Crosby, Neil & Devaney , Steven]
Language: eng
Format: epub
ISBN: 9781118399538
Publisher: Wiley
Published: 2021-01-19T16:00:00+00:00

Short cut DCF valuation analysis

Term:

Rent passing £150,000

YP 24 yr @ 7.75% 10.7520

Capital value of term £1,075,201

Reversion to ERV £200,000

A £1 24 yr @ 3.0223% 2.0434

Inflated rental value £408,676

YP perp. @ 5% 20.0000

PV 24 yr @ 7.75% 0.1667

Capital value of reversion £1,362,682

Valuation £2,437,883

The valuation assumes a fixed income of £100,000 p.a. for the next 24 years followed by a notional sale of the property newly leased at the rental value at the time (£408,676 p.a.) capitalised (sold) at 5%. The cashflow of £100,000 for 24 years and the sale proceeds are both discounted at the target rate of return, 7.75%.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.