Cash Flow Appraisal For Property Investment

This book is a practical guide to the application of discounted cash flow for second and third year undergraduates on property management courses and would also be useful for practising chartered surveyors and those involved in the property business. Discounted cash flow (DCF) is the indispensable technique for the appraisal of property for investment decision-making. As an integral part of modern financial theory, DCF places the appraisal of property on a common basis with equities and bonds and is extensively used by investors, developers, their consultants and bankers. Familiarity with net present value (NPV) and internal rate of return (IRR) is increasingly required by employers in the real estate business, and is an essential expertise for the ambitious chartered surveyor. This book is intended as a practical guide to the application of DCF appraisal to commercial property investments. It invokes the financial theory required to inform good practice, and provides copious examples (including self-assessment questions and answers) to add clarity and practical insights to the text. It is written primarily for students on property management courses, but will also prove useful for practising surveyors and other professionals working in the property industry. This book is a practical guide to the application of discounted cash flow for second and third year undergraduates on property management courses and would also be useful for practising chartered surveyors and those involved in the property business. Good practice requires an understanding of the underlying concepts and rationale as well as the principles, criteria and practical issues which inform the estimation of cash flows and choice of discount rate. This book draws on relevant financial theory to provide the reader with the extent and quality of understanding required to support good practice.