16234 Lecture Notes - Lecture 3: Capitalization Rate, Compulsory Process Clause
Document Summary
In any method of valuation that may be used, an element of the direct comparison methodology exists. Capitalisation: a cap rate adopted is derived from the market based on other cap rates deduced from sales evidence: hypothetical development. Gross realisation may be achieved from the sale of other units in similar complexes. Profit & risk factors may come from other development projects. Sources of data: data bases (rp data, pim"s & residex, newspapers (local & regional, the evidence gathered from these sources is raw data, which requires investigation. Evidence evaluation: gather, investigate (time, age, condition, location, analyse, a valuer is only as good as their data base. Property: land area, building size (nla / no units, method of sale & promotion campaign (private treaty, auction & tender) Spencer v. the commonwealth of australia 1907. Mcdonald v. deputy commissioner of land tax 1915.
