2.3.1.2. Economic Factors Affecting Real Property Valuation:
Economic influence refers that the value of property is affected by certain economic principles. The most important of this principle consist of commercial and industrial trends, employment trends and wage levels, availability of money and credit, price levels, interest rates and tax burdens.
According to Amoh Anti (2003) the study in Sweden concerning property valuation affects national output as measured using the gross domestic product, household disposable income, consumer expenditure levels and retail sales, employment levels, activity of construction output and net household formation, production costs. Firstly, highest and Best Use of a property can greatly affect its attractiveness on the market. If there is no possibility of improvement or the cost would be excessive then the property will be less quality to purchase which lead lower valuation. Whenever one has to value property or advice a client one should consider whether the property …show more content…
In addition, the implementation of the three types of approaches of valuation according to standardize valuation format in relation to the assignment of valuation purpose the results become accepted and gain trust by the community. In the valuation process, it is important to consider any easements or other statutory rights and obligations to employ such as appropriate valuation approach with all requirement formats, restrictive covenants over the property, the nature and extent of permitted use, potential for change of use and proposed development. If the property is held as an investment and let to an occupying value then the quality of those valuation methods is a primary concern, not only in terms of an ability to gain development and future rate of return (Millington,
Economic influence refers that the value of property is affected by certain economic principles. The most important of this principle consist of commercial and industrial trends, employment trends and wage levels, availability of money and credit, price levels, interest rates and tax burdens.
According to Amoh Anti (2003) the study in Sweden concerning property valuation affects national output as measured using the gross domestic product, household disposable income, consumer expenditure levels and retail sales, employment levels, activity of construction output and net household formation, production costs. Firstly, highest and Best Use of a property can greatly affect its attractiveness on the market. If there is no possibility of improvement or the cost would be excessive then the property will be less quality to purchase which lead lower valuation. Whenever one has to value property or advice a client one should consider whether the property …show more content…
In addition, the implementation of the three types of approaches of valuation according to standardize valuation format in relation to the assignment of valuation purpose the results become accepted and gain trust by the community. In the valuation process, it is important to consider any easements or other statutory rights and obligations to employ such as appropriate valuation approach with all requirement formats, restrictive covenants over the property, the nature and extent of permitted use, potential for change of use and proposed development. If the property is held as an investment and let to an occupying value then the quality of those valuation methods is a primary concern, not only in terms of an ability to gain development and future rate of return (Millington,