FINANCIAL FACTORS QUESTIONS

1 List 6 important institutional investors in real estate.

2 "A security valuation must assume a forced sale"'. Discuss this statement.

How would such a method compare with a normal market valuation?

3 How does a conservative lending body affect the valuer's valuation?

4 What is meant by bridging finance and when is it used by a developer?

5 How is the rent determined under a leaseback agreement?

Can a leaseback rent be used as evidence of market rent?

6 Briefly discuss the problems of managing an investment portfolio in which the trustees have laid down the following objectives:

• all investments must be in real estate

• investment must achieve maximum rate of return.

• investments must achieve maximum security.

7 Compare joint ventures with joint ownership as methods of real estate development. List their advantages and disadvantages.

8 Discuss how the valuer should advise the lender, if requested, on the proportion of the valuation that should be lent by way of mortgage.

9 What particular perspective should be adopted by the valuer when valuing a building partly completed for the payment of a progress payment?

10 How does leverage apply to leaseback finance?

11 Compare syndication with property trusts as a source of development finance.

List their advantages and disadvantages.

12 What are the valuation problems in valuing a future building on behalf of the mortgagee?