Principles of Valuation I

At the end of this course, students should be able to: 1. define and state the basic understanding of the fundamental principles of property valuation to real life valuation; 2. explain the distinguishing characteristics of different forms of investment and yield patterns; and 3. demonstrate competence in the determination of the income and outgoings in the valuation of property investments.

Factors affecting supply and demand for land and buildings. Principles of investment. Stocks and shares. Interest rates and investment yields, the property market methods of valuation. Factors affecting demand and supply of land and buildings of various uses. Outgoings and the different letting arrangements: FRI, IRI. of leases and tenancies. Income patterns and variations. Property valuation process/procedure generally, and of the different methods of valuation: Direct market price comparison, replacement cost. Profit/accounts, and land residual methods. Sources of data for valuation.