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De Claron Ltd |
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Express Accountancy services at affordable prices |
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Amortisation Amortisation refers to spreading payments over multiple periods. Payments are divided into equal amo...." |
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Appreciation The appreciation rate is the percentage increase in the market value of a property over a given peri...." |
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Business Plan A business plan is a document that outlines how a business can allocates its often scarce resources ...." |
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Capital Asset Pricing Model (CAPM) Capital Asset Pricing Model (CAPM) for an ...." |
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Capital Funding Capital funding is the provision of finances to acquire fixed, tangible assets such as land, buildi...." |
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Capitalisation Rate (Cap Rate) Those who invest in real estate via income-producing properties need to have a method to determine ...." |
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Cash Flow Cash flow is the measure of cash coming into and out of the business bank accounts. Free cash flow i...." |
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Cash-on-Cash Return Cash-on-Cash Return (COCR) is also referred to as equity dividend rate. It is a measure of a ...." |
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Comparable Method The Comparable Method is used for most types of (non-specialised) properties where there is evidence...." |
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Contractor's (Cost) Method The contractor's (cost) method is used for properties: having specialised purposes such as yout...." |
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Cost of Capital The cost of capital is the weighted cost of the debt and equity of associated w...." |
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Debt Coverage Ratio The Debt Coverage Ratio (DCR) is also known as Debt Service Coverage Ratio (DSCR). DCR measures the...." |
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Debt Service Debt service for an ...." |
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Depreciation Depreciation of buildings is based either on physical deterioration and obsolescence. P...." |
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Development (Residual) Method The development method values property by the land value and the ...." |
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Discounted Cash Flows Discounted Cash Flows (DCF) is used to value anticipated ...." |
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Equity Dividend Rate See Cash on Cash...." |
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Estimated Rental Value (ERV) Estimated rental value (ERV) is the open market rent that a property can be reasonably expected to a...." |
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Gross Operating Income Gross Operating Income GOI of a property is ...." |
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Gross Potential Income Gross Potential Income (GPI) on real estate is realised if a property is fully occupied and all rent...." |
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Gross Rent Multiplier Gross Rent Multiplier (GRM) is the ratio of the or ...." |
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Group Property Company Balance Sheets An analysis of whether property investment companies within a group company collectively generates o...." |
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Group Property Company Profit and Loss Statements Property investors may administer their property stock either directly themselves or via limited lia...." |
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Group Property Company Stock Analysis To illusrate group property company stock analysis we will use a fictious property company group cal...." |
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Income (Investment) Method If a property is used to generate income from sales, rents or leases, the most common method o...." |
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Internal Rate of Return Internal Rate of Return IRR is used to measure and compare the profitability of investme...." |
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Investment Property An investment property is used to generate an income for the owner through: rent from res...." |
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Loan-to-Cost Ratio Loan-to-Cost Ratio (LTC) is the loan amount requested to finance a real estate development project o...." |
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Loan-to-Value Ratio Loan-to-Value Ratio (LTV) is the mortgage amount requested for a property over the appraised value o...." |
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Market Value The market value approach to real estate appraisal usually compares several valuations of what other...." |
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Modified Internal Rate of Return (MIRR) The modified internal rate of return (MIRR) is used to rank property investments of equal size. MIRR...." |
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Net Operating Income Net Operating Income (NOI) for leased properties is determined using assumptions about expected occu...." |
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Net Present Value The Net Present Value (NPV) is used to value a series of ...." |
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Operating Expenses Operating expenses of an investment property includes items such as council tax, utility bills, lega...." |
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Present Discounted Value Present discounted value, is the value on a given date of a future payment or series of future payme...." |
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Profit (Accounts) Method The profit method of valuing properties is used when value of the property is dependent on the busin...." |
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Property Stock Analysis By combining company X's ...." |
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Property Company Balance Sheets An analysis of the whether an ...." |
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Property Company Profit and Loss Statements An analysis of the profitability of any ...." |
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Real Estate Appraisal Real estate appraisal, property valuation or land valuation is the process of valuing real property....." |
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Real Estate Break Even Ratio Real estate break-even ratio measures the ability of an ...." |
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Real Estate Leverage Real Estate Leverage is the use of borrowed money to purchase an ...." |
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Real Estate Pyramiding Pyramiding is a method of maximising ...." |
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Rental Vacancy and Credit Loss Rental Vacancy and Credit Loss (RVCL) in real estate is the loss of rental revenue due to vacant uni...." |
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Return on Investment Return on Investment (ROI) for an investment property is the ratio of gross profit over the value of...." |
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Revenue Funding Revenue funding is the provision of finances to support ongoing business expenses such as wages, ren...." |
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Selling Price Calculations An investment pro...." |