FINA 210 Study Guide - Income Approach, Swimming Pool, National Railway Company Of Belgium
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Chapter 3) finding and evaluating the right property. After completing this lesson you will be able to: calculate a real estate investment using the cost approach, calculate a real estate investment using the net income approach, calculate a real estate investment using the sales comparable approach. Traditional valuation techniques are used to calculate the value of a property. Listen to your professor"s introduction to this topic (video length 00:05:30) To value real estate projects with little or no depreciation. When real estate investments do not produce income, i. e. when the net income approach cannot be applied. When real estate investments do not have any comparables, i. e. when the sales or market comparable approach cannot be applied. By municipalities or local governments to calculate property taxes. Slide 5: advantages and disadvantages of the cost approach. Easy to apply the procedures if the information is available. Different variables used to calculate value of new building, i. e. generates different answers.