16234 Lecture Notes - Lecture 3: Compulsory Process Clause, Profit Margin, Capitalization Rate
17 Aug 2018
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Recap of market value: the principle of market value was established in the case of spencer vs the commonwealth (1907) In this case, spencer owned land in fremantle on the head land. The commonwealth acquired the land for defence purposes. The case that followed established the principle of market value and how it was to be determined in the absence of a transaction over the property to be valued. Lecture 3: valuations are made using appropriate rationale and underpinned by market evidence, capitalisation: a cap rate adopted is derived from the market based on other cap rates deduced from sales. Evidence (cid:862)(cid:1007) ke(cid:455) fa(cid:272)tors (cid:449)hi(cid:272)h are to (cid:271)e a(cid:374)al(cid:455)sed (cid:271)efore (cid:272)o(cid:373)pariso(cid:374)s are (cid:373)ade(cid:863) lecturer: time, location, qualit(cid:455) of propert(cid:455) a(cid:374)d de(cid:448)elop(cid:373)e(cid:374)t(cid:894)s(cid:895) (cid:894)i. e. (cid:272)os(cid:373)eti(cid:272) or (cid:895) It may be perceived that deceases estates are appropriately priced to sell and that a property may be purchased for a bargain: compulsory acquisition, transactions where property is acquired by the compulsory process.
