The writer is fortunate to have access to accumulated information, having been in the industry for more than 30 years, and working with various stakeholders such as bankers, buyers, sellers, investors, brokers, researchers and many others. Given this accessibility to relevant and practical information, sensitised for confidentiality, some general guidelines and notes can be shared as to the valuation approach and methodology to be used in valuing the frail care, food and catering, and assisted living units within a retirement village. Read more
Replacement Cost Valuations and Replacing Assets
/in Insurance Valuation/by David J v VuurenIt is important to note that insurance valuations or replacement cost valuations is not always a straight-forward process, often you might be over- or under-insured. Read more
Factors Influencing Investment in Immovable Property
/in Property Valuation/by Deon J v VuurenAs you probably know, modern day real estate economies are cyclical and goes through cycles of suppressed market conditions, where property prices are relatively low, to expansionary conditions of unsustainable high levels. Holding an investment through an economic cycle and buying or selling at the appropriate time is the aim of most investors. However, apart from the general real estate economic cycles, there is also the property investment cycle or building life cycle. The two are not exactly the same but they are very close.
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Understanding the Insurance Process
/in Insurance Valuation/by David J v VuurenUnderstanding the insurance process for when taking out insurance or when claiming
When insuring your home or office building or industrial warehouse, the basis on which you need to insure is new replacement cost. New replacement cost is what it will cost to replace your entire house or building with an equivalent or similar structure. It is important to understand the insurance process before taking out insurance or when claiming. Read more
How you are insured: New-for-old (mostly)
/in Insurance Valuation/by David J v VuurenMost short-term insurance policies are based on replacing your insured property or assets at new-for-old. This means that if an event arises that damages your property or assets, you can submit a claim to your insurer and they will repair the damage or replace the asset with the equivalent new. This is in line with the principle of placing you in the same financial position you were in directly before the event occurred. Read more
The intricacies of valuing a retirement village
/in Property Valuation/by Deon J v VuurenThe writer is fortunate to have access to accumulated information, having been in the industry for more than 30 years, and working with various stakeholders such as bankers, buyers, sellers, investors, brokers, researchers and many others. Given this accessibility to relevant and practical information, sensitised for confidentiality, some general guidelines and notes can be shared as to the valuation approach and methodology to be used in valuing the frail care, food and catering, and assisted living units within a retirement village. Read more
What determines the value of land
/in Property Valuation/by Deon J v Vuuren“How does the pattern of land use determine the types of property to be found in an area and their values”?
Land in a sense has no value of itself, but for the right to which the land can be put. Improving the use rights in land will generally lead to an increase in value. Land can be zoned for residential-, commercial-, industrial, agricultural and several other uses. Normally, the extent or magnitude to which a property will be developed is dictated by the demand for such a utility. This is also known as the highest and best use of a particular approved right in the land. Read more
Factors to consider when choosing a valuation method
/in Property Valuation/by Richard ChitumbaIntroduction
Valuation of real estate refers to the estimation of the most likely selling price (market price) or the worth of the property to an individual or group of individuals i.e. investment value (Baum and Crosby, 2008). There are many valuation methods. Methods such as the sales comparison, single capitalisation as well as the term and reversion are considered traditional approaches while others such as the discounted cash flow (DCF) and arbitrage valuation models are considered contemporary valuation approaches. Traditional valuation approaches are backward-looking, based upon the principle that a property’s value depends upon its economic and physical characteristics. On the other hand, Read more
What is insurance?
/in Insurance Valuation/by Deon J v VuurenQ&A with Deon Jansen van Vuuren
Q: What is insurance?
A: Insurance is an agreement of payment by an insurer, should the insured suffer financial loss. Insurance is also a guarantee that a valid claim will be paid subject to certain terms and conditions.
Q: What does typical building insurance cover? Read more
Concepts and Principles
/in Property Valuation/by David J v VuurenThe definitions from the International Valuation Standards, eighth edition (2007) are reproduced with the permission of the International Valuation Standards Council who owns the copyright. No responsibility is accepted by the IVSC for the accuracy of information contained in the text as republished, the English version of the IVSC Standards as published by the IVSC from time to time being the only official version of the IVSC Standards.
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Property Legislation
/in Property Valuation/by David J v VuurenConstitution of the Republic of South Africa, Act No. 108 of 1996 (specif. Sect. 25)
Restitution of Land Rights, Act No. 22 of 1994
Restitution of Land Rights Amendment Bill of 2003
Labour Relations, Act No. 66 of 1995
Land Reform (Labour Tenant), Act No. 3 of 1996
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