The valuation of rented freehold property
Language: English Series: Journal of Property Investment and Finance ; 26(2) 2008, 177-181(5)Publication details: 2008Subject(s): Summary: Examines the valuation of rack-rented property by implicit and explicit methods to value properties let above or below the current market rent (i.e. reversionary freehold properties). Finds the implicit method does not produce the same capitalisation rate as the discounted cash flow valuation, and that this approach is not rational. Focuses on examples where rentals are below the market rate and where rents are rising.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | L143051 (Browse shelf(Opens below)) | 1 | Available | 143051-1001 |
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Examines the valuation of rack-rented property by implicit and explicit methods to value properties let above or below the current market rent (i.e. reversionary freehold properties). Finds the implicit method does not produce the same capitalisation rate as the discounted cash flow valuation, and that this approach is not rational. Focuses on examples where rentals are below the market rate and where rents are rising.