Plat, H T (1996) Property values and implications of refurbishment costs. Journal of Financial Management of Property and Construction, 1(2), pp. 57-64. ISSN 1366-4387
Abstract
The value of a property may, in a stable market situation, depend less on the supply availability of land, but more on the change in the value of the building thereon. For buildings to continue to function efficiently, they must be maintained. This involves the periodic maintenance and refurbishment of the building. This paper examines the cost consequences of this work for both present and prospective owners of property. To overcome inequitable distribution of the costs of refurbishment, the author suggests the creation of special funds. These funds would be deducted from the residual value at the point of transfer of ownership of the property and given to the new owner to pay for the necessary refurbishment work. The paper also discusses how this methodology should be used in relation to the rental levels throughout the life of the property.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | demolition, maintenance, property investment appraisal, property valuation, refurbishment, rent |
| Index terms: | refurbishment work, owner, ownership, land, property value, methodology, appraisal, property investment |
| Subjects: | economics, renovation and retrofit, sociology, real estate economics, research methods, factor and component analysis, economic analysis |
| Topics: | Procurement, Design Practice, Urban Studies, Organizational Design, Research Practice, Stakeholder Management |
| Descriptive scope: | 3 PCT |
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