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Property valuation - theory and practice with regard to South Africa

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dc.contributor.author Klein WAP en
dc.date.accessioned 2016-09-22T09:16:12Z
dc.date.available 2016-09-22T09:16:12Z
dc.date.created 1972 en
dc.date.submitted 1972 en
dc.identifier.uri http://hdl.handle.net/20.500.11892/51940
dc.description.abstract Argues that a major part of investing in property is establishing its value. In property valuation for investment purposes, the value sought is the market value. In British and South African textbooks, the central method for valuation is that of Indirect Comparison. The Market Approach entails an analysis of the subject and substitute properties' physical and economic characteristics. The aim of the analysis is to enable the valuer to value the subject property with reference to actual sales of comparable properties. Central to this approach are the assumptions of substitution and price repetition. It is evident that these assumptions do not hold. The Income Approach is the method used to evaluate income-producing properties. The approach is described as the process by which future income is discounted to a present value by virtue of the time value of money. The method of capitalizing current net income into perpetuity has wide application. Where changes in income levels are certain, the growth model may be used. Investors interviewed evaluate properties in line with their expectations of holding periods. As these are long term, the direct capitalization of income into perpetuity is used for developed projects. Investors refer to the market to check calculated values and required rates of return. Direct comparison is seldom used. In general, the local investor uses less sophisticated methods of valuation than his/her American and British counterpart, but the South African system of ownership is based on the simpler free-hold basis. en
dc.language English en
dc.subject Business administration / Business leadership en
dc.subject Management economics en
dc.subject 009 Economics en
dc.title Property valuation - theory and practice with regard to South Africa en
dc.type Masters degree en
dc.description.degree MBA en

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