OK. Ive been pondering over this recently and thought it be time to ask everyone their experience/opinions.
Which factors/variables have the greatest effect on valuations of commercial property? whether established or new developments?
Some of them i see being:
1 UCV, the unimproved capital value of the land beneath the development must play a part in overall valuation.........doesnt it?
2 Location, whether its coastal, cbd, regional, village, capital city and the community within those areas ie industrial estates etc.
3 Type, the structure or purpose of this development has to be taken into account, ie shop,warehouse,workshop,mini-storage development etc
4 Construction cost, does this effect/play a significant role in the overall valuation?
5 INCOME, this is the one most constant factor ive found in the evaluation of the com ips ive looked at.Usually surrounding at capitilisation rate of approx 10%, ie $20k pa income gross,$200k valuation of property, or somewhere thereabouts.........
Or am I overlooking something else?
Thanks in advance for your replies regards add.
Which factors/variables have the greatest effect on valuations of commercial property? whether established or new developments?
Some of them i see being:
1 UCV, the unimproved capital value of the land beneath the development must play a part in overall valuation.........doesnt it?
2 Location, whether its coastal, cbd, regional, village, capital city and the community within those areas ie industrial estates etc.
3 Type, the structure or purpose of this development has to be taken into account, ie shop,warehouse,workshop,mini-storage development etc
4 Construction cost, does this effect/play a significant role in the overall valuation?
5 INCOME, this is the one most constant factor ive found in the evaluation of the com ips ive looked at.Usually surrounding at capitilisation rate of approx 10%, ie $20k pa income gross,$200k valuation of property, or somewhere thereabouts.........
Or am I overlooking something else?
Thanks in advance for your replies regards add.