Application of Contemporary Equated Yield and Dcf Explicit Growth Methods in the Valuation of Over-Rented Properties in a Recessionary Period : a Case Study of Nigeria

• Autorzy: Vincent Uwaifiokun Aihie
• Języki publikacji: EN

Abstrakty

EN

Valuations have always been time specific and, if properly undertaken, are supposed to give a true reflection of property market conditions at any given point in time. In periods of economic decline, when properties are leased or tend to exchange hands at rents or prices lower than their true market value, a need to capture the explicit growth rate associated with an instability in the property market arises. With the Nigerian economy currently facing its worst recession in years, the onus is on valuers to adopt contemporary methods of valuation which seek to mirror the true situation of the property market at any point in time; something which, hitherto, conventional methods of valuations have failed to do. This paper therefore takes a pilot survey of the types of investment valuation models currently adopted by valuers when carrying out valuations of reversionary properties in a recession. The study seeks to highlight the knowledge gap of valuers, both in practice and in the academia, concerning the use of the Equated yield and DCF explicit growth method of valuation, and hence enlighten them and the general public on its use as a more appropriate method of valuing properties during a downturn. (original abstract)

Słowa kluczowe

EN

Cash flows; Real estate valuation; Overpopulation

PL

Przepływy pieniężne; Wycena nieruchomości; Przeludnienie

• Czasopismo: Real Estate Management and Valuation
• Rocznik: 2018
• Numer: vol. 26, iss. 3
• Strony: 35--50

Twórcy

autor

Vincent Uwaifiokun Aihie

• University of Benin, Nigeria

Bibliografia

• Baum A., Crosby N., 1988, Property Investment Appraisal, London: Routledge,
• Baum A.E., Crosby N., 2014, Property Investment Appraisal, 3; 3rd; edn, Wiley-Blackwell, Hoboken,
• Baum A., Nunnington N., Mackmin D., 2012, The Income Approach to Property Valuation, 1st ed. Hoboken: Taylor and Francis,
• Ball M., Lizieri C., Macgregor B., 1998, The Economics of Commercial Property Markets, illustrat;1; edn, Routledge Ltd, GB,
• Bello M.O., Bello V.A., 2007, The Influence of Contemporary Models on Valuation Practice in Nigeria, Strategic Integration of Surveying Services, Hog Kong SAR, China 13-17 May 2007,
• Central Bank Of Nigeria, 2012, Understanding Monetary Policy Series No 14: Economic Recession
• Central Bank Of Nigeria, 2017, www.cbn.gov.ng,
• Crawshaw P., 2009, The Global Financial Crisis and Sub-Saharan Africa: The Efects of Slowing Private Capital Inflows on Growth, New York: South central,
• Crosby N., 2016, Unpublished Lecture Series on Valuation Appraisal, Henley Business School, University of Reading.,
• Crosby N., Henneberry J., 2015, Financialisation, The Valuation of Investment Property And The Urban Built Environment In The UK, Urban Studies 53.7:1424-1441,
• Debt Management Office Nigeria, 2017, www.dmo.gov.ng/fgn-bonds,
• French N, 2013, UK Freehold Reversionary Properties: Valuation Practice Revisited, Journal of European Real Estate Research 6.2:218-235,
• French N., Patrick M., 2015, The Plethora of Yields in Property Investment and Finance: a Summary, Journal of Property Investment & Finance, 33(4), pp. 408-414,
• French N., 2013, Reversionary Freehold Valuations: Over-rented Cash Flows by Spreadsheet, Journal of Property Investment & Finance, 31(3), pp. 298-306,
• Ifediora G.S.A., 1993, Appraisal Framework, 1st ed. Enugu, Nigeria: Iwuba Ifediora Associates,
• Igboko N.P., 1992, Research Project on Valuation Methods in Nigeria with Special Reference to Years Purchase, Research report for the Nigerian Institution of Estate Surveyors and Valuers 1-43,
• IVSC, 2017, International Valuation Standards, International Valuation Standard Council, London.
• Leramo G.A., 1992, The Groundwork of Property Valuation, Kaduna Polytechnic Press, Kaduna, 1, 1-3,
• Mankiw N. (n.d.), Essentials of Economics, 1st ed,
• Ogunba O.A., Ajayi C.A., Aluko B.T., 2005, Substitution Vrsus Anticipation: a Resolution of the Nigerian Valuation Practice Paradox, Journal of Land Use and Development Studies, 1, (1), 1-10,
• Oladapo F.A., 2016, Perspectives on the Nigerian Economic Recession, Centre for Allied Research and Economic Development, Policy Briefs PB023,
• Oyesiku O., 2009, Global Economic Recession, the Environment and Sustainable Development in Nigeria, Urban journal, Vol. 2, pp. 40-46,
• Udoekanem N.B., 2009, A Critical Examination of the Appropriate Application of Contemporary Valuation Techniques in the Determination of Market Values of Residential Property Investments in Uyo, Nigeria, M.Sc Dissertation, Department of Estate Management, University of Nigeria, Nsukka.

Identyfikatory

DOI

10.2478/remav-2018-0023