ESM 222
Introduction to Valuation II
3
Course Description
At the end of this course, students should be able to:
1. Gain understanding of rental analysis;
2. Become familiar with the valuation of different property types;
3. Understand the basics of property inspections; and
4. Undertake simple valuation exercises.
Course Outline
The land market: its nature, features, sectors and imperfections. The money and capital markets,
and the principles governing interest rates and yields. Method of market analysis. Mathematics
of finance: the mathematical background and construction of valuation tables and concepts of
years purchase. Property inspection and survey (property referencing). Concepts of rack rents
and profit rent. Elementary valuation problems without and with the aid of valuation tables – for
income receivable in arrears and in advance, different income periods/patterns: discounting and
capitalization distinguished; the concept of risk and return.