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?