Property Investment Appraisal [Paperback]

Andrew Baum (Author)

Book Description

ISBN-10: 0415093287 | ISBN-13: 978-0415093286 | Publication Date: December 1995 | Edition: 2 Sub

This new edition brings the subject up-to-date with an assessment of the effects of the recession on property investment and valuation. Building on the critical strength of the first edition which explained and analyzed the key concepts and techniques for property investment appraisal, the authors have extended their use of examples and illustrative material to lead the reader through the appraisal methods. This is the ideal text for all those studying property investment appraisal, property valuation and commercial and industrial property. It is also directly relevant to property professionals, valuation surveyors, investment analysts and property market researchers.

Editorial Reviews

Book Description

When first published in 1988 this book was acclaimed by a number of commentators as being the first critical work about UK property appraisal, previous work was at a basic level concentrating solely on communicating applications in practice so that students and practitioners were able to fulfil the valuation function. Critiques of this practice had previously been confined to academic papers in academic and professional journals. In 1995, the authors published a second edition which developed some of the applications in the text to more complex lease structures and added material on falling income flows. During the previous five years, the property crash of 1990 had caused valuers to re-appraise traditional valuation approaches and some of the developmental work in the previous edition was applied to the changed cash flow expectations caused by the inflexible lease conditions. Since 1995, property investment appraisal has developed and a new edition is required to take note of these developments. The issue of flexible leasing has become one of the major Government policy initiatives within direct property investment and the pricing of the lease contract needs to be addressed. In addition, there has been a steady research output concerning the valuation process rather than methods and this whole area, including the behavioural aspects, should be considered within any modern appraisal text. Some other specific aspects which impact on appraisal are advances in our understanding of risk and the definition and measurement of depreciation.and these also need to be incorporated into a new edition. Despite the second edition being nearly 10 years old, more recent texts appear to have retained a descriptive approach and therefore PIA remains the major critical work outlining the limitations of UK property investment appraisal and valuation whilst still providing readers with enough practical application to help them to undertake appraisals. --This text refers to an alternate Paperback edition.

From the Back Cover

This book explains the process of property investment appraisal – estimating both the most likely selling price (market value) and the worth of property investments to individual or groups of investors (investment value).

Valuations are important: they are used as a surrogate for transactions in the construction of investment performance and they influence investors and other market operators when transacting property. Valuations need to be trusted by their clients and valuers therefore need to produce rational and objective solutions.

In a style that makes the theory as well as the practice of valuation accessible to students and practitioners, the authors provide a valuable critique of conventional valuation methods and argue for the adoption of more contemporary cash-flow methods. They explain how such valuation models are constructed and give useful examples throughout.

The UK property investment market has been through periods of both boom and bust since the first edition of this text was produced in 1988 and the book includes examples generated by the different market states: for example, complex reversions, over-rented situations and leasehold examples are in ready supply and are examined fully by the authors. They have retained the book’s basic structure and thrust, setting out fundamental investment and appraisal theory in Part One of the book, but adding a new chapter on building and modelling cash flows as a precursor to the investment material in Part Three.

The heart of the book remains the critical examination of market valuation models addressed in Part Two – it remains the case that no other book addresses this issue in detail. --This text refers to an alternate Paperback edition.

See all Editorial Reviews

Product Details

• Paperback: 304 pages
• Publisher: International Thomson Business Press; 2 Sub edition (December 1995)
• Language: English
• ISBN-10: 0415093287
• ISBN-13: 978-0415093286
• Product Dimensions: 9.1 x 6.1 x 1 inches
• Shipping Weight: 1.2 pounds
• Amazon Best Sellers Rank: #8,926,260 in Books (See Top 100 in Books)

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