Rental Value Research Articles

Dynamics of gentrification: experiences from selected neighbourhoods in Port Harcourt municipality

In recent times gentrification in the form of urbanisation has become a prominent recurrent phenomenon dotting the cityscape on most developing cities in the global south. Little attention has been given to the process because the dynamics of gentrification has become more challenging to city managers in Port Harcourt Municipality in Nigeria. This study aims to highlight specific areas inundated with gentrification within selected neighbourhoods of Port Harcourt Municipality such as Orije Old GRA, Oromenike (D/Line) and PH-Township with characteristics of three residential densities (low, medium and high) respectively. Identify causal factors with a view to understanding the dynamics and recommend planning measures that would ameliorate associated identified impacts. Mixed method approach was deployed. A total of 397 respondents across three selected neighbourhoods participated with the aid of closed and open-ended questionnaires to obtain the data. Findings indicate significant changes in the neighbourhoods different from their original designated uses: from residential to mixed uses (commercial and residential) with impact on the social and economic conditions of these neighbourhoods. Sustained demand for space for other uses in addition to increasing population result in sudden spike in rent for residential and other uses. The study recommends intensive periodic review of existing planning schemes establishing these neighbourhoods by both government and relevant physical planning agencies as this would upgrade the neighbourhoods to more sustainable and modern urban environment; construction of more low-cost housing units in these neighbourhoods especially in the high and medium densities neighbourhoods for residents to ameliorate the high rental values of existing properties; introduction of rent control mechanisms to checkmate arbitrary increase in rent in the neighbourhoods, discourage unapproved change of use; and strict penalties according to the Rivers State Physical Planning and Development Law of 2004 to developers that violate the alteration of buildings without permit and going against the conditions of the permit issued to the developers to alter any building.

Real estate as an investment asset

The present text focuses on perceiving real estate property as an investment asset that generates a certain amount of revenue to its owner, assuming expected risk and the expected level of liquidity. The first step is to determine the open market value of the selected property, which represent the expected expenses of the investment costs incurred (taking into account other acquisition costs), then we determine the open market rent value, which is the expected return on the selected property, then identify possible business risk associated with the commercial use of real estate and finally, the liquidity of the entire investment is estimated. In conclusion, methods for evaluating investments are applied to assess the realization of the investment – acquisition of the selected real estate for commercial purposes, the estimated return time and the percentage of the return on investment is calculated of the paper.

THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This is in contrast to a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible property. Real property (also called real estate or realty) means the combination of land and improvements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real property is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial and vacant real property. In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments. A special assessment tax is sometimes confused with property tax. These are two distinct forms of taxation: one (ad valorem tax) relies upon the fair market value of the property being taxed for justification, and the other (special assessment) relies upon a special enhancement called a "benefit" for its justification.

Application of breeders to technical recommendations in the field of raising and caring for sheep in some villages of Behira Governorate

The research aimed to identifying the level of application of the breeders to the technical recommendations in the field of raising and caring sheep in the Behira Governorate. The largest center in the field of sheep breeding and caring was selected in Wadi al-Natroun. The center contains four main villages; the number of breeders in the four villages was 690. The data were collected using the personal interview and used frequencies, percentages, means, and alpha coefficient .The main results were: About 68.16% of the respondents were medium application of technical recommendations in the field of sheep breeding and caring. Respondents resort to eleven sources to obtain information about sheep breeding and caring and there are four sources that have an advanced ranking were personal experience (90.6%), other breeders (76.1%), neighbors and relatives (73.9%) and the veterinary unit (70.3%). There were 16 obstacles faced by sheep breeders, the main obstacles facing them were the increase in the prices of concentrated feeds (73.2%), the increase in the rental value of agricultural land (69.6%) and the high costs of veterinary treatment (64.5%). Respondents need some extension services and the most needed services are the regular follow-up of sheep (82.6%), providing cheap feed concentrates (81.9%), and continuing awareness of the most important recommendations in the field of sheep breeding (75.4%).

The impact of housing consumption value on the spatial distribution of welfare

The measure of a household's income should include not only monetary components but also non-monetary components and in-kind benefits, such as imputed rent. Imputed rent is the rent an owner can expect to receive were the house on the rental market. This study examined the impact of net imputed rent on the distribution of income in a spatial context. The spatial impact of net imputed rent, mortgage payments, private rent, public rent (social housing schemes) and reverse mortgage/annuity on the spatial distribution of disposable income was examined for the year 2011. A spatial microsimulation model, simulated model of the Irish local economy (SMILE), was used to simulated disposable income at a detailed spatial scale. Rental and property values are estimated at a spatial scale adopting the kriging methodology. The created rental and property data were merged into the SMILE simulated dataset to examine the impact of housing on the spatial distribution of disposable income at a small area level. Results show that the imputed cash flows from property ownership decreases the income share of those at the bottom of the income distribution and is inequality increasing, except in the case of those aged 65 +. Spatially the benefits of housing are greatest in urban areas where property values are highest. The small area measurements of imputed rent highlight the dis-equalising impact imputed rent and housing wealth has on inequality; the rich being able to consume more housing.

Performance evaluation on aggregate bases of real estate in a mixed asset portfolio in Lagos

This paper evaluates the performance of direct real estate in a mixed-asset portfolio, to ascertain whether the inclusion of real estate in the portfolio helps it perform better or not. Annual Transaction prices of government bonds, treasury bills, development stocks and commercial papers for a ten year period (2005-2014) were retrieved from the CBN bulletin. Annual rental values for commercial offices were collected through questionnaires administered on 220 out of 309 estate firms within the study location using simple random sampling technique. 165 questionnaires were returned and analyzed. The portfolio risk and returns were calculated with and without real estate to check performance at both levels. Correlation analysis was used to compare the strength of relationship and co-movement of assets. Findings show that real estate performed better than other assets giving higher returns though with higher risk. This can be attributed to the 2009 crash in the Nigerian stock market which made investors turn to real estate on the basis of security. However, correlation analyses of the assets revealed a moderately positive correlation indicating little or no diversification benefit. This paper recommends further study using direct and indirect real estate only to determine the level of performance on a risk and return basis.

Kontribusi Sektor Kehutanan Terhadap Pembangunan Daerah Provinsi Kalimantan Selatan (Pendekatan Perhitungan PDRB Hijau)

Penelitian ini bertujuan untuk mengetahui dan menganalisis kontribusi sektor kehutanan terhadap pembangunan daerah provinsi Kalimantan Selatan tahun 2012 – 2016 dengan menggunakan pendekatan perhitungan PDRB Hijau. Penelitian menggunakan metode diskriptif dengan pengolahan data secara kuantitatif terhadap data sekunder yang didukung data primer melalui perhitungan nilai unit rent, deplesi, degradasi dan penyusutan dari kegiatan pemanenan kayu bulat pada hutan alam dan hutan tanaman. Hasil penelitian menunjukkan nilai unit rent, deplesi, degradasi dan penyusutan per satuan produksi pada hutan alam relatif jauh lebih besar dibanding hutan tanaman. Nilai tersebut sekitar 81 % pada hutan alam dan 19 % pada hutan tanaman, sehingga diperlukan intensifikasi pengelolaan hutan tanaman untuk penyediaan kayu bulat sekaligus sebagai upaya mengurangi tekanan terhadap hutan alam di Kalimantan Selatan. Kontribusi hijau sektor kehutanan terhadap pembangunan daerah lebih kecil atau berkurang dibanding kontribusi sektor kehutanan dalam perhitungan PDRB konvensional, yang berarti provinsi Kalimantan Selatan telah mengorbankan aset (modal alami) dari penyusutan sumber daya hutan yang belum diperhitungkan sebagai nilai tambah sektor kehutanan dalam perhitungan PDRB konvensional. Besar nilai penerimaan sektor kehutanan sebagai nilai kompensasi dan insentif dari nilai penyusutan sumber daya hutan dan lingkungan relatif sangat kecil dibanding nilai yang diperlukan untuk pencegahan dan pemulihannya. Kontribusi (nilai tambah) riil sektor kehutanan terhadap pembangunan daerah provinsi Kalimantan Selatan dengan memasukkan nilai penyusutan sumber daya hutan sekitar 119 % dari PDRB yang tercantum dalam PDRB konvensional. Kata Kunci : PDRB Hijau, Sektor Kehutanan, Pemanenan Kayu Bulat, Hutan Alam, Hutan Tanaman

Tearing down the information barrier: the price impacts of energy efficiency ratings for buildings in the German rental market

Improving the energy efficiency levels of the housing stock is of particular concern in the private rental market where capital costs and utility cost savings are not shared in equal measure by landlords and tenants. This problem is particularly pronounced in the German housing market with its predominance of rented accommodation over owner occupancy. The present study is the largest to date to investigate the effect of energy efficiency ratings on rental values. Using a semiparametric hedonic model and an empirical sample of nearly 760 thousand observations across 403 local markets in Germany with full hedonic characteristics, we find evidence that energy-efficient rental units are rented at a premium. However, this effect is not confirmed for the largest metropolitan housing markets. In a second step, a survival hazard model is estimated to study the impact of the energy ratings on time-on-market. It is found that energy inefficient dwelling have longer marketing periods and are hence less liquid than their more energy efficient counterparts.

An Assessment of the Impact of Property Maintenance on Property Rental Values in D-Line Port Harcourt, Nigeria

The study investigates the impact of property maintenance on property rental values in Port Harcourt: A case study of D/line Housing. The population of the study consists of 119 firms of estate surveyors and valuers practicing in Rivers State and 230 tenants occupying blocks of 2 and 3 bedroom flats in the study area. This was selected through purposive sampling techniques with sample size of 238 respondents using the Taro Yamane formular. Three research questions were answered. Data were collected through the administration of a questionnaire. A total of 238 questionnaires were distributed to the sample groups, out of which 210 were retrieved representing 89% response which was found useful for the analysis. Data obtained were analyzed using percentage, mean, and chart. The result from the analysis showed that preventive maintenance practices are adopted in property maintenance to enhance its value. The study further revealed that lack of sufficient funds is the most prevalent factor that affects property maintenance. The mean from the study also revealed that roof is the most significant element that will impact on property rental values. The study also revealed that rental values of well-maintained properties are higher than the poorly maintained properties. The study concludes that maintenance of property requires attention at the highest level. Therefore, maintenance of properties should not be neglected by owners and users. The study recommends that preventive maintenance practices should be adopted by property managers to ensure adequate preservation of the building and its elements to enhance its values. Some percentage of rent should be set aside annually to prevent lack of sufficient fund to carryout maintenance.

Transitional gains and rent extraction

Tullock (Bell J Econ 6:671–678, 1975) described a transitional gains trap in which the present value of rents is capitalized in the value of an asset required to get the rents. Owners of the assets just earn a normal rate of return on their assets, despite the inefficient policies that produced the rents. The trap was that undoing the inefficient policy would impose a transitional loss on the owners of those assets. Tullock characterized the creation of transitional gains as a mistake, but combined with McChesney’s (J Leg Stud 16(1):101–118, 1987) rent extraction framework, the creation of transitional gains can be seen as a mechanism for rent extraction, not a mistake. Tullock (Bell J Econ 6:671–678, 1975) focuses on the value of assets required to obtain rents. Sometimes investment in those assets imposes a welfare loss on the economy, but the rent-seeking literature does not acknowledge that at other times it does not. Rent-seeking is typically not as economically costly as it appears to be in much of the rent-seeking literature.

Depreciation of Rental Values of Apartments Based on Stated Preference Data of Tenants

Depreciation of Rental Values of Apartments Based on Stated Preference Data of Tenants

U.K. House Prices: Bubbles or Market Efficiency? Evidence from Regional Analysis

This paper studies U.K. regional house prices across nine regions from January 2005 to December 2017 to identify regional versus national effects on house prices and potential house price bubbles. It uses a version of the Gordon dividend discount model, modelling house prices as the present value of imputed rents as a measure of fundamentals. It differentiates between long-term and short-term effect using pooled mean group (PMG) and mean group estimation (MG) to determine variations in regional house prices during different periods relating to the most recent financial crisis. The results confirm that the crisis had differentiating effects in the short term, but there is reversion back to long-run fundamentals. Regional trend analysis shows that the house price growth in the regions has been affected differently in the short run and each region has varying long-run fundamentals. Residential property values in London have shown strongest short-run momentum.

Classification Modelling for the Impact of Historical Site on Residential Property Rental Value in Osogbo, Nigeria

Previous studies have revealed that historical sites have impact on property value. However, none of the previous studies have forecasted the impact of historical site on residential property value using a classification model. Data for the study were gathered from the record of recent letting in the study area. For the purpose of precision, this study adopted artificial neural network, logistic regression and support vector machine as model of classifying the rental value of residential property in Osogbo, Nigeria. The study considered relevant variables which include distance to cultural site, age of building, state of exterior and state of interior as input variables. Findings from the study revealed that the three adopted forecasting models have over 80% percent of the forecasted properties correctly classified which make the property forecasting reliable.

Trends in private patent costs and rents for publicly-traded United States firms

We use detailed data to estimate the private costs and private rents of United States patents for publicly-traded firms. In analyzing costs, we first introduce a novel theoretical model to interpret our estimates. We then combine lawsuit data from Derwent Litalert with non-practicing entity (NPE) lawsuits collected by Patent Freedom, and use an event-study approach to estimate losses suffered by alleged infringers during 1984–2009. To estimate rents, we combine patent data from the USPTO and EPO with financial data from COMPUSTAT, and use market-value regressions to estimate the value of patent rents for publicly-traded US firms during 1979–2002. We find that private costs exceed private rents during 1999–2000 and the trend in costs is sharply higher. Costs also exceed forecasts of rents for 2005–09. A surge in the number of NPE lawsuits contributes to the increase in the gap.

Compensation for land and building compulsorily acquired in Nigeria

Purpose Valuation for compensation on land and buildings compulsorily acquired for public purposes is statutory. The Land Use Act (LUA) of 1978 now cited as Laws of the Federation of Nigeria, CAP l5 LFN 2007, stipulates the use of Depreciated Replacement Cost (DRC) Method in the valuation for compensation purposes for building and installation. The purpose of this paper is to criticize the application of the DRC technique in the valuation by acquiring authority as it does not arrive at fair market value and adequate compensation in Nigeria. Design/methodology/approach The method adopted for the study was a case study of real world valuation for compensation. Data used in the study were gathered mainly from government ministries and agencies responsible for land acquisition and compensation purposes. They included the Ministry of Lands and Housing, Land Use and Allocation Committee, and Ministry of Works and Transport. Market data on rental value, sales prices and other relevant data were collected from firms of professional that deal in real property. Findings The result of the study reveals that valuation by acquiring authority using DRC methods as prescribed by the LUA does not reflect market value and it is inadequate to put the claimants in the position they were before the acquisition. As such, most victims expressed dissatisfaction with the amount paid to them, which sometimes result to crisis, conflict and prolonged litigation, resulting in delay in executing or abandonment of the intended project. Research limitations/implications The study is limited to only one case study on acquisition and compensation for land and buildings with particular reference to Akwa Ibom State. This limitation does not invalidate the result as the law is applicable to the whole country. Practical implications The implication is that the LUA needs to be review to fair market value as basis of valuation and payment for site value as well as the constitution to add “adequate” to Section 44 (1a). This will reduce the incidence of many communities and land owners protest against the decision of government or its agents to acquire their land for public purposes. Originality/value The methodology meets the requirement of the law regarding compulsory land acquisition and compensation in Nigeria: The LUA of 1978. Using three scenarios: the valuation by acquiring authority, claimant’s valuers and independent valuers to illustrate the critique of the methodology, the result shows the inadequacy of compensation.

Property valuation in the UK: energy efficiency legislation and its impact on valuation

PurposeThe purpose of this paper is to provide an insight into how the new energy efficiency legislation in the UK is impacting upon the valuation of certain properties. This paper looks at how to adapt implicit valuation models to reflect the new risks of the impact of legislation.Design/methodology/approachThis practice briefing is an overview of the new legislation and comments on the appropriateness of valuation models in different scenarios.FindingsThis paper analyses the likelihood of capital and rental value changes under the new energy efficiency guidelines.Practical implicationsThe role of the valuer in practice is to identify the impact of the new legislation on the value of the subject property and choose the correct model for the valuation task in hand.Originality/valueThis provides guidance on how valuations can be undertaken to reflect any impact of the new energy efficiency legislation.

Information Support for the Land Registration: Directions for Upgrading of Statistical Reporting

Decentralization of power and rapid expansion of local self-governance in Ukraine, gradual extension of property forms and rights for land use determine the need for gradual reformation of the processes involved in land records and respective presentation of data in financial and statistical reports of business entities. The article is devoted to elaboration is issues relating to statistical recording of transactions with land resources. Results of the study show the decreasing number of forms of statistical reports on land resources. A comparative assessment of the forms of statistical and administrative reports for recording quantitative data on lands is made. Use of statistical reports on land resources and administrative reports on quantitative data on lands lays the grounds for monitoring of land use relations in Ukraine. Common and distinctive features of the statistical and administrative reports are found out by the results of the comparative analysis. The pressing issues in collecting statistical data on land market and land relations are outlined: the need in filing the data on the land value depending on land size, land owners and users, purpose of land; the need for filing the data on contracts for land purchase and sale and sale price (except for agricultural lands, due to the existing moratorium on their sales); the filing of data on the rental value of 1 acre of land by location, quality and purpose of land. The need for filing the statistical data on quality status and use of land recourses in business entities’ operation is demonstrated. Recommendations on improving statistical reports on land resources through introducing the annual statistical form “The Report on Land Status and Effectiveness of Land Use” are given. If applied, the proposed report will enable for build the integrated databases on quantity and quality of land resources.

أساليب التعامل مع الأنماط المختلفة للوحدات السکنية بقانون الايجار القديم في مصر Intervention policies dealing with different types of old rent law housing units in Egypt

أکدت الاحصاءات الرسمية وفقا لتعداد 2017 على وجود 3,019,865 وحدة سکنية مؤجرة بقانون الايجار القديم على مستوى الجمهورية، مع وجود فجوة مابين عدد الوحدات السکنية وعدد الأسر بقانون الايجار القديم تقدر بـ 1,37 مليون وحدة يمکن تفسيرها بتعدد أنماط استعمال وحدات الإيجار القديم بخلاف الإستعمال السکني، إن البحث في الأنماط المختلفة لإستعمال الوحدات الإيجارية القديمة ورصد اختلافها يساعد على اختيار المدخل والأسلوب الأنسب للتعامل معها لاعادة ادخالها والإستفادة منها في تغطية الطلب الحاصل في سوق الاسکان. وعليه يستعرض البحث أولا الإطار الفکري والسياسي والتشريعي لقانون الايجار القديم، کما يناقش البحث أهم الأسباب التي تعيق من تعديل قانون الإيجار القديم والنتائج المترتبة على تجميد القيمة الإيجارية، وعرض نماذج لتجارب بعض الدول في رفع القيود عن الايجارات القديمة والتي تتفاوت مابين التقييد الشديد للايجار إلى التواؤم مع الأوضاع الحالية للسوق. ويرکز البحث على دراسة أهم مؤشرات الوضع الحالي لقانون الإيجار القديم کتوزيع الأسر المعيشية طبقا لنوع حيازة المسکن، ومقارنة توزيع الأسر في مقابل الوحدات بقانون الايجار القديم على محافظات مصر والوصول إلى الفجوة مابين عدد الوحدات السکنية وعدد الأسر بقانون الايجار القديم ونقاط الترکز المکاني لوحدات الايجار القديم. وينتهي البحث بطرح الأنماط المختلفة للوحدات السکنية بقانون الإيجار القديم في مصر والأسلوب الأنسب للتعامل مع کل منها بما يحقق إعادة التوازن بين حقوق المؤجر والمستأجر، وتعظيم العائد المادى من الضرائب العقارية، ومواجهة ظاهرة الوحدات المغلقة، وتحرير العلاقة الإيجارية بشکل تدريجي مع وضع البعد الاجتماعى في الاعتبار.According to the 2017 census, there are about 3,019,865 units were leased under the old rent law all over Egypt, with an estimated gap of 1.37 million units between the number of units and the number of families under the old rent law which can be explained by the diversity of the using types of these old rental units other than residential use. Studying the different types of using the old rental units and monitoring their differences helps to choose the most appropriate and suitable approach to deal with them to reuse and benefit from these units in narrowing the demand in the housing market. The research will first review the intellectual, political, and regulatory framework of the old rent law. The research also will discuss the main reasons that hinder the amendment of the old rent law and the consequences of freezing the rental value. Then the research will present some examples of different countries' practices in dealing with the old rent law which varies from strong restrictions to cope with current market conditions. The research focuses on studying the most important indicators of the current situation of the old rent law, such as households distribution according to the type of housing ownership, comparing the distribution of families with old rent law units all over Egypt, and reaching the gap between the number of units and the number of families under the old rent law and the spatial concentration points of the old rental units. The research ends up with presenting the different types of old rent law housing units in Egypt, recommendations for classifying the policies of dealing with the old rental housing units to achieve a rebalance between the rights of both lessor and tenant, maximizing the monetary revenue from real estate taxes and finally facing the phenomenon of vacant units and freeing the rental relation gradually with taking into considerations the Social aspect.

LEGAL AND ECONOMIC ASPECTS OF PROPERTY TAXATION IN THE EUROPEAN UNION

A property tax (or millage tax) is a levy on real estate that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the real estate property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This is in contrast to a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible property. Real property (also called real estate or realty) means the combination of land and improvements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real property is often taxed based on its classification. Classification is the grouping of properties based on similar use. Real estate properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial and vacant real property. In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments.

The Hedonic Modelling of Rental Values of Properties in Nasarawa, Nigeria

The Hedonic Modelling of Rental Values of Properties in Nasarawa, Nigeria