Search results

Explains how the computer can help investment managers. Categorizes the principal uses as: valuation, investment analysis, development appraisal and estate management. Gives an overview of what a good system should be able to do. Concludes that it is a combination of the computer and the expertise of the user which makes for success.

The mathematics of property valuations commonly used in practice exist in several formulations which have been adopted over the years. All are similar in that they represent simple discounted cash flow models equating the estimated future earnings capacity of a property to a net present (capital) value. The process, whilst appearing somewhat daunting, is in fact accomplished in a manner such that, under normal circumstances, the estimated future cash flow beyond the next rent review is not explicitly expressed. Instead of generating a future income flow (assuming some rate of rental growth) and discounting at a money rate of interest (suitably adjusted for risk), the estimated rental income at the next review is capitalised at a relatively low investment yield rate which merely implies a future rental growth rate.

Discusses some problems associated with people using computer packages who are unwilling or unable to understand how to run the system, its limitations, the techniques employed and the end results. Explains a model of discounted cash flow.

Suggests that conventional approaches to development appraisal are simplistic even when a computer is used. Overviews some conventional approaches with advantages and disadvantages. Discusses computer modelling. Concludes that the property world has lagged behind others in taking advantage of computing power.

In a previous paper Sykes derived a mathematically consistent investment valuation model for freehold properties which he referred to as the Rational Model. This new model overcomes certain serious failings of other methods commonly in use. The present paper readdresses the arguments of the earlier paper in a manner rather more familiar to a practising valuer and compares current methods of valuation with the Rational Model. It is also shown that the Rational Model can be simply adapted for the valuation of leasehold interests without resorting to a separate (and usually quite artificial) ‘sinking fund’ rate.

The quantitative assessment of the degree of risk associated with the direct acquisition of commercial property for investment purposes is practically non‐existent. There is almost always a total reliance on unquantified subjective feeling with no attempt to transform such a qualitative treatment into an analytically more acceptable and useful form. Whilst the investment capitalisation rate should, to an extent, reflect the investor's view of the future earnings capacity of a particular property, this yield rate is principally a function of general market sentiment and may not significantly allow for the inherent risk characteristics of an individual investment. This is especially the case at the prime end of the market where the pressure of funds competing to invest in a sector of particularly limited supply remains most severe.

The market value of any property investment will tend to deteriorate over time when compared to similar modern properties if monies are not periodically expended to mitigate the effects of obsolescence. This paper examines the relationship between the initial yield of a property at purchase and the rate of future rental value growth necessary to achieve a criterion rate of return on the investment. Traditionally in calculations of the future rental growth rate required to justify an initial investment yield (when compared, say, to the rental shown by gilt‐edged stocks) the simplistic view is taken that following purchase no further expenditure is anticipated. However, if a property is to maintain its original market appeal (or adapt to evolving circumstances), capital must from time‐to‐time be injected for the purposes of refurbishment. Thus, any analytical model which ignores this inevitable expenditure, but nevertheless assumes a constant rate of long‐term future rental growth, is quite unrealistic. A Refurbishment‐Rental Growth Model is derived which allows the introduction of regular future capital expenditure both in terms of magnitude and frequency. Various examples are illustrated of the effect which such expenditure may have in necessarily increasing the required future rental growth for a property investment in order to achieve an anticipated level of return.

Analysing depreciation and obsolescence requires a model which separates the effect of abnormal changes in the market from the underlying growth trends. The model presented by Sykes fails to recognise the economic principles involved and, therefore, gives rise to results which are open to misinterpretation. Using the best methods available it is shown that over the period from 1978–85 there is no evidence to suggest that valuers have been misinterpreting growth prospects in either the office or retail sectors. There is some evidence, however, to suggest that this may be the case as far as the industrial sector is concerned. There is insufficient data available at present to confirm whether this trend is one which is likely to be sustained over very long periods. At the practical level it is shown that by combining properties into portfolios it is possible to diversify away the effects of obsolescence.

The paper examines three English research papers on self-neglect, from 1957, 1966 and 1975, discussing them in the context of more recent thinking and the statutory framework in England.

In reviewing the three research papers, developments and points of continuity in the field of self-neglect were identified and are discussed in this paper.

In light of the findings of the three articles, the present paper traces some of the classificatory refinements in this field that have taken place since the papers were published, notably in respect of hoarding and severe domestic squalor. Some of the difficulties in making judgements about behaviour thought to breach societal norms are described, and the challenges practitioners face in intervening in cases, particularly where the person concerned is refusing assistance, are examined.

By drawing on the historical research context, the paper contributes to our current understanding of the field of self-neglect.

This paper explores the question of whether the identification of many wrongdoings in an organisation requires knowledge of the technical and operating mechanisms of that organisation. If such is the case, many ethical problems cannot be resolved by a generalist. They must be left to people with knowledge of that industry. In attempting to answer the question, the paper examines 11 different types of organisations. It then asks how the ethical issues in those organisations might be resolved. The organisations are veterinarians, pharmacies, media companies, engineering firms, doctors, general businesses, including two sub disciplines, marketing and accounting organisations, nursing institutions, political parties, scientific research organisations, legal firms and information technology companies. Each can be a small professional company, locally based, or a large organisation, possibly international. Each exhibits one or more ethical problems that are not easily resolved by accepted ethical theory. Accepted theory, as further defined in the text, is the mainline ethical theories that would be core components of most ethics texts or courses. The question arises then on how would ethics be taught if the ethical issues require specialised knowledge of that industry sector. After examining the 11 industries, the paper puts forth two views. One is that a number of wrongs can be identified in industries and organisations where the ethical problems are complex and difficult to resolve, and where the standard ethical theories are of little or no help. Resolving these issues requires action from the organisation, or from the industry association encompassing all companies within that sector. A further complication has developed in the near explosive growth in whistleblower protection systems. These systems, now introduced in close to 30 countries around the world, have their own lists of wrongdoings for which the whistleblower will receive administrative and legal support. These lists of wrongs are distinct from any moral theory One conclusion to be drawn is that new methods possibly need to be found for teaching the identification and resolution of ethical issues. A second is a consequence of the first – that the teacher of ethics in these courses has to be drawn from within the industry. Further questions then arise: One is whether this demand then requires that this industry specialist learn moral theory? A second is then how would generalist applied ethics causes be taught (in humanities departments for instance)? Alternate viewpoints on joint teaching by a moral specialist and an industry specialist have been put forward. The paper puts forward one possible approach for the industry courses – that the industry specialist has to present the course, with new methods and content, but that a theoretical content is taught by someone knowledgeable in ethical theory. For generalist courses, the moral theorist has to include a sufficiently wide sample of industry and organisational ethical issues to ensure that students are aware of the wide range of ethical concerns that can arise, as well as approaches to resolving them.