Commercial Property Valuation Foundation Course

Transcription

1 Commercial Property Valuation Foundation Course Duration: 6 Months Distance Learning Programme Language: English RICS Member: VAT Non RICS Member VAT Course Summary Valuation surveyors operate across a wide range of asset types, working in both the public and private sector, the most common asset classes include commercial, residential and rural property. This course will enable you to define commercial property valuation and to assess the property market. You will recognise the purpose of valuations, the five methods of property valuation and identifying the concepts of value used by professionals in this domain. You will also be able to recognise which situations will require which types of valuation. The course finishes with the guidance on how to compile a valuation report. Who is this course for? If you are an aspiring property valuation professional this foundation course will support you in developing crucial skills and competencies in line with the RICS global professional standards. Teaching the main concepts and techniques this programme will develop your ability to use the five valuation methods in context. Commercial Property Valuation Foundation Course Version 2.0 Page 1

2 Course Structure This distance learning course is made of up of 12 units delivered across a 24 weeks (6 month) training course. It is best practice to 2 weeks on each unit and you should complete one unit before moving onto the next. Each topic has been composed to provide candidates with a supportive and informative training schedule blended together using a combination of materials: Unit 1 - Overview of Investment and the Property Market Unit 2 - Basis and Purpose of Valuation Unit 3 - Inspection and investigation for valuation Unit 4 - Measurement of Commercial Properties Unit 5 - The Comparative Method Unit 6 - The investment method using traditional cap rate. Unit 7 - The Investment Method using discounted cash flow. Unit 8 - The Profits Method Unit 9 - The Residual Method Unit 10 - Depreciated Replacement Cost Unit 11 - International Valuation Standards and the RICS Red Book Unit 12 - The Valuation Report Commercial Property Valuation Foundation Course Version 2.3 Page 2

3 Learning Method The blended learning method is a self-directed learning approach. It involves a combination of provided reading material, audio presentations, case studies, personal research and tutor support in forums a live web class consolidation sessions. Students get the most out of the course when they take a collaborative approach with other candidates, sharing resources and professional experiences. Online audio presentations Topic related training material Case Studies & practical exercises Online forum for tutor and delegates Virtual learning sessions Online tutor led e-learning Specifically chosen the e-learning courses within this module will assist delegates in gaining an understanding of the globally applicable standards in commercial property valuations. Case Studies and Practical Exerices Simple case studies within the distance and blended approach assist in bringing the theory to life. Delegates are provided with structured case studies, which will direct them to share their answers with their fellow delegates within the module forum and web class sessions. Topic Related Reading Material Provides a great opportunity to learn from existing theory and practice Learners can also study at their own pace and when convenient. These reading materials are available online so can be accessed anywhere at any time to help provide deeper context to the tutor audio presentations. Online forums to share information and ask questions Forums provide a great opportunity to share information and pose questions you may have related to the topics. During distance learning, having access to a forum allows all delegates to also share each other s questions and responses and helps to provide a community feel. Commercial Property Valuation Foundation Course Version 2.3 Page 3

4 Virtual Learning Virtual learning sessions have been design to support the delegates and help consolidate their knowledge. These structured training sessions will allow the tutor to teach and explain the knowledge and theory in a live environment. Being online is like a face to face session without the need to leave the office, so delegates can be based anywhere geographically. Course Text Book The text book has been sourced to provide candidates with a thorough in-depth look into the topics covered throughout the course and supply further reading regarding best practice and key techniques valuing commercial properties. Course Contents Unit 1 - Overview of Investment and the Property Market Aim: To provide context for valuation. 1. Define a property market. 2. Describe the economic principle of an imperfect market. 3. List six factors that influence supply and demand. 4. Identify the valuer s role within the property market. Unit 2 - Basis and Purpose of Valuation Aim: To provide context and consistent basis for common valuations. 1. List the common bases of value. 2. Describe a main purpose for market value. 3. Describe when market value is NOT appropriate. 4. State the definition of market value. Commercial Property Valuation Foundation Course Version 2.3 Page 4

5 Unit 3 - Inspection and investigation for valuation Aim: To scope information needed to produce a valuation. 1. Distinguish between inspection and survey. 2. Identify health and safety best practice on inspection. 3. State the relevant part of the Red Book for inspection and investigations. 4. List factors that might be noted on inspection that could affect value. 5. Describe what is meant by specification for inspection. Unit 4 - Measurement of Commercial Properties Aim: To scope the measurement of commercial property. 1. State the application of the code of measuring practice. 2. Describe the international aspect of property measurement. 3. List the core definitions in the Code of Measuring Practice 4. State the main use for each basis of measurement. Unit 5 - The Comparative Method Aim: To describe the comparative method and its use. 1. Identify when comparable method is appropriate. 2. Describe a good comparable. 3. State how to evidence comparable adjustments in matrix. 4. Correctly adjust comparables to compare like with like. Commercial Property Valuation Foundation Course Version 2.3 Page 5

6 Unit 6 The investment method using traditional cap rate. Aim: To describe the investment method and its uses on a traditional basis. 1. To identify when investment method is appropriate. 2. To list the steps in the method. 3. To describe the relationship between rent, years purchase and yield. 4. To state the shortcomings of the traditional approach. Unit 7 - The Investment Method using discounted cash flow. Aim: To scope the use and methodology of discounted cash flow. 1. To identify when the use of DCF is appropriate. 2. To list the columns in a DCF table. 3. To describe the meaning of discounting. 4. To state the shortcomings of DCF. Unit 8 - The Profits Method Aim: To scope the principles of the profits method of valuation/ 1. To identify when it is appropriate to use the profits method. 2. To define the key language used within the method. 3. To list the steps in producing a profits valuation. 4. To state the shortcomings of the method. Commercial Property Valuation Foundation Course Version 2.3 Page 6

7 Unit 9 - The Residual Method Aim: To scope the use and steps in the residual method of valuation 1. To describe when residual method is appropriate. 2. To identify the main inputs in a residual valuation. 3. To appreciate the risks and sensitivity of the valuation inputs. 4. To describe the shortcomings of the method. Unit 10 - Depreciated Replacement Cost Aim: To provide an overview of how to and when to use the depreciated replacement cost of valuation. 1. Describe when DRC is the appropriate method to use in valuation. 2. List the steps in the DRC method of valuation. 3. Carry out a simple DRC in a case study. 4. State the critique of the DRC method of valuation. Unit 11 - International Valuation Standards and the RICS Red Book Aim: To gain an overview of the professional standards applicable worldwide in valuation. 1. To state the purpose of the IVS and Red Book 2. To describe the relationship between the RICS Valuation Professional Standards 2014 (The Red Book) and the International Valuation Standards (IVS). 3. To list the contents of the Red Book. 4. To identify when the Red Book applies. Commercial Property Valuation Foundation Course Version 2.3 Page 7

8 Unit 12 - The Valuation Report Aim: To appreciate the requirements for reporting under the IVS and Red Book. 1. To state the relevant parts of the IVS and Red Book. 2. To list the minimum requirements for reporting. 3. To state the extra requirements in loan security valuations. 4. To state the extra requirements for financial reporting. Learning Outcomes This course will equip your with the tools and techniques to understand the application of these globally applicable property valuation skills. Delegates who successfully complete the course will have gained the knowledge allowing them to: Evaluate the property market, its operators and investment merits Demonstrate why valuations are required and what purpose they serve Apply the different concepts of value, price and worth to a valuation Inspect and measure a property and review the techniques that support the process Apply the global application of codes of measuring practice Demonstrate measuring and calculating floor areas for different types of property Analyse rental evidence applicable to the valuation task Evaluate the causes of change in rents, yields and land values Demonstrate the principles of valuation practice for both freehold and leasehold properties Select and use the different methods of valuation Explain the importance of professional property valuation standards Identify what is required in valuation reports for specific purposes Commercial Property Valuation Foundation Course Version 2.3 Page 8

9 End of Course Assessment Delegates will be assessed through an online examination hosted by the RICS Online Academy. The online examination will take place at the end of the 6 month course and delegates will need to acquire the requisite minimum score to successfully complete the course. The exam will be available once all the units have been completed. The exam will be two hours long and in a multiple choice format. Calculators and valuation tables will be needed. Delegates will have two attempts to complete the exam. Upon successful completion of the course delegates would have completed 150 CPD hours study over the 6 month period. Delegates will also receive a certificate of course completion confirming you have successfully attended and passed the RICS Foundation Commercial Property Valuation course. Commercial Property Valuation Foundation Course Version 2.3 Page 9