CONS07062 2022 Investment Valuations
Full Title
Investment Valuations
Transcript Title
Investment Valuations
Code
CONS07062
Attendance
N/A %
Subject Area
CONS - Construction
Department
CENG - Civil Eng. and Construction
Level
07 - Level 7
Credit
05 - 05 Credits
Duration
Semester
Fee
€
Start Term
2022 - Full Academic Year 2022-23
End Term
9999 - The End of Time
Author(s)
Trevor McSharry, Barrie Cox, Ms. Laura ODonnell, Aisling Doyle
Programme Membership
SG_SPROP_J07 000000 Bachelor of Science in Property Services and Facilities Management
SG_SPROP_J07 202200 Bachelor of Science in Property Services and Facilities Management (Add-on)
SG_SAUCT_S07 202200 Certificate in Auctioneering and Estate Agency Practice
SG_SPROO_J07 202300 Bachelor of Science in Property Services and Facilities Management
SG_SAUET_S07 202300 Certificate in Auctioneering and Estate Agency Practice
Description
The aim of this module is to build on the learners understanding of valuation principles and their application. The module will focus on Investment Valuations and illustrate the appraisal of such valuations. On completion of this module the learner will have the knowledge to assess investment valuations, identify the variables, carry out an investment valuation and make recommendations on same.
Learning Outcomes
On completion of this module the learner will/should be able to;
1.
Demonstrate an understanding of investment valuations and the variables in the process.
2.
Analyse Investment comparables and incorporate them in the valuation process.
3.
Develop and prepare a leasehold valuation
4.
Apply valuation methodology as appropriate to varying situations.
5.
Construct a discounted cash flow analysis of a property investment to obtain the Net Present Value and the Internal Rate of Return in respect of that investment.
Teaching and Learning Strategies
This module will be delivered through lectures.
Moodle is used by lecturers to direct and manage the learning process and facilitates formal learning, posting of lecture notes and continuous assessments, additional resources and supporting documents. Informal learning: social communication between learners.
Moodle will also be further used as a means of assessment, utilising online quizzes, for the uploading of assignments of reports.
Module Assessment Strategies
This module will be assessed as follows:
40% Continuous Assessment
60% Final Exam
Repeat Assessments
Students who fail an element of the module will need to repeat each element (continuous assessment and or final exam) as instructed by the module lecturer.
Indicative Syllabus
1. Demonstrate an understanding of investment valuations and the variables in the process.
- Review valuation formulae
- Yields (all risks yield/ initial/ equivalent/ equated)
- Voids
- Capital Expenditure
- Terms
2. Analyse Investment comparables and incorporate them in the valuation process.
- Location
- Description
- Similarity
- Rents
- Terms
- Yields
3. Develop and prepare a leasehold valuation
- Stepped rents
- Overrented properties
- under rented properties
- Premiums & their calculation (advantages & disadvantages to landlords & tenants)
4. Apply valuation methodology as appropriate to varying situations.
- Term & Reversion/ Hardcore
- Retail Zoning (Zone A – applying rent to term & reversion)
- Incorporating all of the above variables into the valuations
5. Construct a discounted cash flow analysis of a property investment to obtain the Net Present Value and the Internal Rate of Return in respect of that investment.
- Net Present Value
- Profit
- IRR
- Finance (Trends/ paybacks/ rents/ yields)
Coursework & Assessment Breakdown
Coursework & Continuous Assessment
40 %
End of Semester / Year Formal Exam
60 %
Coursework Assessment
| Title | Type | Form | Percent | Week | Learning Outcomes Assessed | |
|---|---|---|---|---|---|---|
| 1 | Continuous Assessment | Coursework Assessment | Assessment | 40 % | OnGoing | 1,2,3,4,5 |
End of Semester / Year Assessment
| Title | Type | Form | Percent | Week | Learning Outcomes Assessed | |
|---|---|---|---|---|---|---|
| 1 | Final Exam | Final Exam | Closed Book Exam | 60 % | End of Semester | 1,2,3,4,5 |
Online Learning Mode Workload
| Type | Location | Description | Hours | Frequency | Avg Workload |
|---|---|---|---|---|---|
| Lecture | Not Specified | Investment Valuations | 1 | Weekly | 1.00 |
| Directed Learning | Not Specified | Investment Valuations | 1 | Weekly | 1.00 |
| Independent Learning | Not Specified | Investment Valuations | 5 | Weekly | 5.00 |
Total Online Learning Average Weekly Learner Contact Time 1.00 Hours
Required & Recommended Book List
Recommended Reading
2007-11-12 Property Investment Appraisal Wiley-Blackwell
ISBN 1405135557 ISBN-13 9781405135559
2007-11-12 Property Investment Appraisal Wiley-Blackwell
ISBN 1405135557 ISBN-13 9781405135559
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 books 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.
Recommended Reading
2021-02-08 Property Investment Appraisal John Wiley & Sons
ISBN 9781118399552 ISBN-13 1118399552
2021-02-08 Property Investment Appraisal John Wiley & Sons
ISBN 9781118399552 ISBN-13 1118399552
Discover an insightful examination of the property investment appraisal process from leaders in the industry This book explains the process of property investment appraisal: the process of estimating both the most likely selling price (market value) and the worth of property investments to individuals or groups of investors (investment value). Valuations are important. They are used as a surrogate for transactions in the measurement of investment performance and they influence investors and other market operators when transacting property. Valuations need to be trusted by their clients and valuers need to produce rational and objective solutions. Appraisals of worth are even more important, as they help to determine the prices that should be paid for assets, even in times of crisis, and they can indicate market under- or over-pricing. 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. They also show how these contemporary cash-flow methods connect market valuations with rational appraisals. 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. As a result, the book includes examples generated by vastly different market states. Complex reversions, over-rented properties and leaseholds are all fully examined by the authors. This Fourth Edition includes new material throughout, including brand new chapters on development appraisals and bank lending valuations, heavily revised sections on discounted cash flow models with extended examples, and on the measurement and analysis of risk at an individual property asset level. The heart of the book remains the critical examination of market valuation models, which no other book addresses in such detail.
Recommended Reading
2016-08-08 Introducing Property Valuation
ISBN 1138929956 ISBN-13 9781138929951
2016-08-08 Introducing Property Valuation
ISBN 1138929956 ISBN-13 9781138929951
This new edition of bestselling textbook Introducing Property Valuationprovides students with a comprehensive introduction to the concepts and methods of valuing real estate, helping them to progress successfully from basic principles to a more sophisticated understanding. Taking a practically oriented rather than purely theoretical approach, the textbook equips readers with the skills to undertake their own valuation calculations. Fully updated to reflect recent developments in regulation and practice, experienced tutor and valuer Michael Blackledge demonstrates how the principles can be applied in professional practice in line with the requirements and guidance provided by the International Valuation Standards Council and the Royal Institution of Chartered Surveyors. Online material accompanies the new edition with Q&As and pre-programmed excel spreadsheets enabling students to prepare their own calculations. The five traditional methods of valuation are outlined and the practical applications of the two main approaches, the comparison and investment methods, are fully explored. The use of discounted cash flow and quarterly in advance calculations, topics which are not always adequately covered elsewhere, are also explained. Accessibly written with a full range of worked examples, case studies, clear chapter summaries and extensive further reading suggestions, this book is essential for any student of real estate and its valuation.
Recommended Reading
2009 Principles of Valuation Estate Gazette
ISBN 0728205688 ISBN-13 9780728205680
2009 Principles of Valuation Estate Gazette
ISBN 0728205688 ISBN-13 9780728205680
An entry level introduction to valuation methodology, this book gives a straightforward narrative treatment to the subject matter with a multitude of examples and illustrations, contained in an easy to read format. There is a strong emphasis on the practical aspects of valuation, as well as on the principles and application of the full range of valuation methods. This book will serve as an important text for students new to the topic and experienced practitioners alike. Topics covered include: property ownership concepts of value the role of the valuer property inspection property markets and economics residential property prices and the economy commercial and industrial property methods of valuation conventional freehold investment valuations conventional leasehold investment valuations discounted cash flow contemporary growth explicit methods of valuation principles of property investment.
Recommended Reading
2012-01-11 Property Valuation Principles Red Globe Press
ISBN 9780230355804 ISBN-13 0230355803
2012-01-11 Property Valuation Principles Red Globe Press
ISBN 9780230355804 ISBN-13 0230355803
A user-friendly introduction to property valuation for students and practitioners who are new to the subject. The text is packed with worked examples and photos and covers the five main methods of valuation, their application in a variety of markets and their relation to the wider economic context.
Recommended Reading
2017-12-14 The Income Approach to Property Valuation
ISBN 113863963X ISBN-13 9781138639638
2017-12-14 The Income Approach to Property Valuation
ISBN 113863963X ISBN-13 9781138639638
Revised edition of the authors' The income approach to property valuation, 2011.
Module Resources
Non ISBN Literary Resources
Journal Resources
URL Resources
www.scsi.ie
www.rics.org
Other Resources
Additional Information