The productive value procedure is a procedure for the evaluation of cultivated properties.

Areas of application

The productive value procedure is used mainly with productive (i.e.) real estates serving at the free market of the letting/farm lease, like for example:

• Rented-house properties (multi-family houses)
• Business properties (office and firms, shopping centres)
• Mixed used properties

In question for the productive value procedure residential plots even used do not come and/or - real estates like e.g. In and two-family houses as well as free-hold flats, whose value is to be determined as a rule in the reference value procedure (if necessary supplementing in the asset value method). Likewise not in the productive value procedure to evaluate other special real estates, like e.g. special production plants, not acted at (renting) the market, are infrastructure facilities like e.g. Stations, cultural real estates and militarily used properties.

Kinds of the productive value procedure

German productive value procedure

In Germany in the building law book as well as in the valuation regulation and the valuation guidelines standardized and detail described productive value procedures are prevailing. Here first the value reason and soil is determined, what takes place as a rule in the reference value procedure, whereby worth-affecting circumstances are to be considered like e.g. material rights appropriately. Subsequently, over the size, quality, equipment, marketability etc. of the renting surfaces a rent which can be obtained lastingly is determined. As far as the current rent is over it or under it, this can be considered by (if necessary kapitalisierte) or anticipated payments.

The sum of all yields (beside the rents also different yields can have influence), attainable per year, results in the yearly gross profit. Of it to take off is the not apportionable portion of the rationing costs: Operating cost, administratives expense, maintenance cost and renting loss venture (demand loss, not however long-term emptying and). Net proceeds before departure of the land value interest charges result, thus that actually the owner from the object the available Kapitalfluss.

The initially determined land value is multiplied by the real estate property interest, which is empirically determined by the panels of experts. The height of the real estate property interest depends on the layer (region/city/road) and use of property. The suggested value before application is to be adapted if necessary individually. The result of the multiplication is the land value interest charges, which are to be taken off from determined net proceeds before land value interest charges. Net proceeds result. Note: This proceeding mirror (fictitious) the separation from reason and soil, made in German evaluation practice, on the one hand and structural facilities on the other hand than independent economic goods again. A discussion of the pro and cons would blow up the framework here.

Since the serviceability of buildings is finite, it applies to determine, how long the building is economically (not technically) usable. Here the NHK offers 2000 and the technical literature useful references, whereby it is to be marked that the often quoted 60-80 years total service life for office buildings from today's viewpoint are quite long e.g. Total service life minus age results in the remainder of the useful life, which can be extended if necessary due to reorganizations (also for this the technical literature holds references ready). Financialmathematically net proceeds are regarded as constant payment during a limited period and can be kapitalisiert therefore. The value factor or also reproducer in such a way specified is derived from the remainder of the useful life and the real estate property interest (LZ), whereby the LZ represents the risk, to which the future payment rivers are subject. The derivative the value factor takes place financialmathematically or on the basis in the WertR contained table. The multiplication of net proceeds with the value factor results in the productive value of the structural facilities, which if necessary around worth-affecting circumstances like e.g. Maintenance back-up to correct is. The value of the structural facilities plus the value reason and soil results in the productive value of cultivated property.

In the German area occasionally to find also the simplified productive value procedure, which ignores the land value and the land value interest charges, is thus in the long run only the structural facilities regarded, similar to the anglo-saxon procedures. For a first approximation to the value of a property it is also usual to multiply the gross profit with a multiplicator. The result is however extraordinarily inaccurate, if called by experience of many years of the estimate experienced, and therefore also adversely "“broker procedures"”.

International productive value procedure

In the international area the anglo-saxon kinds of play of the productive value procedure dominate. These win in the course of the globalization also in Germany at area. The fundamental difference consists of it that the value of cultivated property is derived only from the buildings, in the long run leases is evaluated. In relation to the German procedures this offers both pro and cons.

The procedure wide-spread at is thereby the Investment Method or also Income Approach. Briefly to be seized with it durably attainable net proceeds derived from the buildings (similarly as in the German procedure, however in the anglo-saxon area substantially more rationing costs are put down) and as eternal pension kapitalisiert, i.e. the remainder of the useful life is regarded theoretically as infinite. This is with buildings with high remainder of the useful life unproblematically, there the bar value of the yields at the latest starting from that 30. Year towards zero tends. The discounting takes place financialmathematically with yield, i.e. an interest rate, which illustrates building-conditioned influences as well as the inflation apart from the risk of the future incomes (usually use dependent) also situation and. The derivative is sometimes quite intransparent.

On the advance the DCF procedure is international. Here (with in principle same procedure) the payment rivers in the close period for each period (year) are determined individually and subordinated only central until long-term as constant. Advantage of this procedure is the detailed view of the respective period, e.g. to the illustration of forthcoming investments etc. following the payment stream of the periods on the evaluation deadline is abgezinst, whereby the derivative of the discounting interest likewise complicated and tendentious intransparent is.

see also: Asset value method, reference value procedure

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