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谁能帮我翻译一下不胜感激 北京癫痫病医院 转srgoogle Source : “income and expense analysis, apartments, condominiums and cooperatives,” journal of property management, part 2, vol. 41, no. 4, p.7, July-august 1976. In short, there is some basis for adjusting expenses upward according to an annual percentage increase. There are techniques that employ computers to calculate expenses over the economic life of a building, projecting costs by means of a certain annual percentage increase with current expenses as the base. In this method gross income may also be increased by an annual, constant percentage. However, if rent control is effective, these methods rest on highly subjective procedures. The alternative would be to accept the most reasonable expense statement based on an interpretation of past trends and, in the face of rising uncertainty over net operating income, increase the capitalization rate to account for added risks of earning the projected net income. Probably most appraisers follow the procedure of stabilizing expenses according to the most probable interpretation of future expenses, i.e., adjusting property taxes to account for a current revaluation of the assessed value without making mathematical projections of the future rate of increase. Figure 10-1 reveals average operating expense for 470 unfurnished elevator apartment buildings surveyed by the Institute of Real Estate Management. Although expense detail is not shown and expenses do not include depreciation of replacements, total expenses amount to 54.5 percent of gross possible income. Maintenance and repair, followed by property taxes, are the other leading expense items. The average net operating income of 42.0 percent of gross possible income must be sufficient to pay (1) debt service, (2) replacements, (3) capital recapture, and (4) return on the investment. Types of Expenses To be estimated accurately, operating expenses should be divided into two categories: fixed expenses and variable expenses. Fixed expenses refer to operating expense that do not vary with the occupancy rate. For example, property taxes must be paid each year whether the property is 50 percent occupied of 100 percent occupied. The variable expenses include those with tend to increase with an increase in occupancy. The distinction between these two categories emphasizes the importance of accurate expense calculations since fixed expenses must be paid even if the property is unsuccessful in attracting tenants. Gross possible income ------Vacancy and bad debts Net operating income (before capital recapture and debt service) ------Administrative Net operating [excluding: -----Utilities (1) depreciation and (2) ------Taxes and insurance replacements ] ------Maintenance and repair Figure 10-1 average percent of operating expenses as a percent of gross possible income: elevator unfurnished apartments. (source: “income and Expense Analysis, Apartments, Condominiums and Cooperatives,” Journal of Property Managements, Pat 2, vol. 41, no. 4, p. 42, July/august, 1976.) Fixed Expenses Although the type of fixed expense varies by property type, the following items would generally be included: Insurance Property taxes Depreciation (on fixtures and furniture) Contract services (window washing, ground maintenance, elevator contracts, janitorial services) The depreciation expense on fixtures and furniture is listed by some authorities as a replacement reserve; it is included under fixed expenses to show that the cost of personal property must be recovered over the life of the asset. The cost of personal property must be recovered over the life of the asset. The cost of fixtures and furniture is usually allocated evenly over each year of their estimated life. To the extent that maintenance services are furnished under annual contracts, they represent expenses unrelated to income and are more properly classified as fixed expenses than as variable expenses. Fixed expenses continue independently of property use. A 160-unit motel in Pennsylvania, for example, found that business did not justify the operation of all 160 units. Shortly after opening they closed down 40 units to save variable expenses. However, the fixed expenses as listed above continued for the 40 units that produced no gross income. Variable Expenses Expenses that tend to change with occupancy levels are fairly limited: Utilities (water, heating fuel, electricity) Repairs Supplies Management expenses (estimated as a proportion of effective income) In the case of the 160-unit motel, if gross income gained from operation of the last 40 units did not cover variable expenses, it would be more economic to discontinue operation of these units. If net income does not equal or exceed variable expenses, it is more economic to abandon the property-which explains the abandonment of substandard apartment buildings in metropolitan areas such as New York city and Washington, D.C. Sources of Expense Data General the current operating of an income property under valuation will be available to the appraiser for review. Even after the income statement has been revised, it is sometimes necessary to judge the appropriateness of expense items. Usually two sources of expense information are available: the expense records of similar properties operating under typical management and published expense surveys. Local Expense Data A review of expense incurred by similar properties in the same locality gives the best possible support to expense estimation. However, the appraiser must take care to analyze expenses of like properties. It would be inappropriate to refer to the expense per square foot of a regional shopping center that had 500,000 square feet of rentable area if one were appraising a neighborhood shopping center with 100,000 square feet of rentable area. Similarly, ir would be unacceptable to cite the 10-story, 25-year-ole apartment building in an appraisal for a 100-unit, garden-court apartment constructed five years ago. There is the additional problem of showing expenses under typical management. A corporation that owns and operates 10 shopping centers gains from purchasing supplies and insurance in quantity and from certain economies that are experienced under a central management. The corporation’s expense data for a single shopping center would show below-normal expenses of operation because of the unusual efficiency of a large-scale operation. For help in judging the comparability of expense data, appraisers may turn to published expense data for selected property types. Published Expense Data Published expense data are subject to subject to considerable differences in interpretation. The expenses published by national organizations are not always drawn from representative properties. They do not always account for the expenses experienced in a particular community. Frequently their data apply to selected properties that may not be typical of the property under appraisal. Yet these sources furnish invaluable guides that can help the appraiser interpret local data. Among the publications available are: Dollars & Cents of Shopping Centers: 1975, Urban Land Institute, Washington, D.C., 1975. Journal of Property Management Income/Expense Analysis: Apartments, Condominiums & Cooperatives, Institute of Real Estate Management, Chicago, 1977, part 2. Trends in the Hotel-Motel Business: 1976, 40th Annual Review, Harris, Kerr, Forster & Company, Atlanta, Ga., 1976. 1976 Downtown and Suburban Office Building Experience Exchange Report, Building Owners and Managers Association International, Washington, D. C., 1976. Table 10-4 shows a typical expense statement for motels taken from the annual report published by Harris, Kerr, Forster and company. The data on shopping centers published by the urban land institute show operating income and expenses of shopping centers by type of center and by area of the United States. Similarly the apartment house series furnished by the institute of Real Estate Management shows apartment house operating expenses by type of apartment, region of the United States, age group, and city. The building owners and managers association supplies similar data for office building operations. CAPITALIZATION RATES The estimation of capitalization rates generally centers on three techniques. A fourth alternative, called the build-up method, is viewed with suspicion and is seldom used. The build-up method requires making an estimate of component shares of capitalization rate to allow for the presumed “safe” rate of interest, in addition, allowances must be made for the added risk of real estate, lace of relative liquidity, the greater expense of managing real estate, and the like. The difficulty of defending rates based on these component shares, the estimation of which rests solely on personal value judgments recommends reliance on other techniques. Band-of –Investment Method Appraisers rely heavily on the band-of-investment method of identifying capitalization rates. In essence, this is a method of weighting the returns earned by a lender who holds the first of second mortgage and the share earned by the owner of the equity interest. There are two alternatives for applying this procedure: the one weights the mortgage interest; the other weights the mortgage constant. Table 10-4 Average Sales and Operating Expenses of 325 Transient Hotels: 1975 Total percent of total Total sales and income: Rooms $ 823,578,332 55.2 Food (including Sunday income ) 421,932,220 28.3 Beverages (including Sunday income ) 177,129,456 11.9 Telephone 41,648,662 2.8 Other departmental profits 7,900,458 .5 Other income 19,166,123 1.3 Total $ 1,491,355,251 100.0 Cost of goods sole and departmental wages and expenses: Rooms $ 238,766,756 16.0 Food and beverages 497,640,832 33.4 Telephone 59,254,960 4.0 Total $ 795,662,548 53.4 Gross operating income $ 695,692,703 46.6 Deductions from income: Administrative and general expense $ 122,313,228 8.1 Management fees 26,943,033 1.8 Advertising and sales promotion 57,131,733 3.8 Heat, light, and power 92,026,520 6.2 Repair and maintenance 74,364,709 5.0 Total $ 372,779,223 24.9 House profit $ 322,923,480 21.7 Store rentals 18,322,740 1.2 Gross operating profit $ 341,246,220 22.9 Fire insurance and franchise taxes 8,062,170 .5 Profit before real estate taxes and other capital expenses $ 333,184,050 22.4 Real estate taxes 78,423,300 5.3 Profit after real estate taxes but before other capital expense* $ 254,760,750 17.1 * Profit before deducing depreciation, rent, interest, amortization, and income taxes. Note: payroll taxes and employee relations are distributed to each department. Source: trends in the Hotel-Motel business: 1976, Harris, Kerr, Foster and company, New York, 1976,p.19. Weighting by the Mortgage Interest for illustration, assume that the first mortgage lenders make long-term funds available under a 75 percent mortgage at 9.5 percent. If the investors expect 12 percent interest on the remaining 25 percent equity, the capitalization rate would be a weighted average of these two returns: Weighted average First mortgage: .75?.95= .0712 Equity: .25?.12 = .0300 Capit6alization rate = .1012 or 10.12 percent In this instance, the rates of return apply to 100 percent of the property, divided between the first mortgage lender and the equity owner. Note, however, that the capitalization rate calculated in this manner does not include that share of income representing capital recapture consequently, if the 10 percent capitalization rate applies to a building, an added allowance must be made for capital recapture. Recall that net operating income is calculated before depreciation allowances-in this sense meaning capital recapture. Let us assume that the market rate of return on real estate investments if 8 percent. Besides this return on capital, the investor expects to “recapture” the investment. In the simplest case, if the capital recapture occurs at a constant rate each year over a building life of 50 years, the recapture provision would be 2 percent (1/50=.02). a building with a 40-year life, using straight-line recapture, would call for a recapture rate of 2.5 percent annually (1/40=.025). Consequently the overall capitalization rage includes provision for capital recapture: .08 Return on capital .02 Capital recapture .10 Overall capitalization rate Weighting by the mortgage Constant ? The weighted mortgage constant gives an overall capitalization rate, which is not given by weighting the mortgage interest. In this method, the term of the mortgage must be known in addition to the loan-to-value ratio and mortgage interest rage. If at the time of the appraisal, a 75 percent mortgage at 9.5 percent interest with a 25-year term represents the prevailing market rate of financing, then the mortgage constant for these mortgage terms would be substituted for the mortgage interest rate. The mortgage constant of .1048 applies in this case to a first mortgage, 75 percent loan-to-value ratio, 25-year term, 9.5 percent interest, payable monthly: .075?.1048 = .0786 .025?.12 = .0300 Overall capitalization rate = .1086 or 10.86 percent ? The mortgage constant refers to the annual amount that must be paid on principal and interest in order to repay one dollar. For a 75 percent mortgage at 9.5 percent interest with a 25-year term, the monthly payment of principal and interest to repay on dollar is multiplied by 12: .008736 (monthly payment to repay $1.00) ?12= .1048, the mortgage constant. The 10.86 percent overall capitalization rate accounts for all net operating income. Capital recapture rate is equal to mortgage principal payments. Here it is assumed that after paying debt service, principal, and interest, the remaining income reverts to equity owner. Since net income divided by the property value gives the overall capitalization rate, the band-of-investment method, using the mortgage constant, would give the same overall capitalization rage. In the former example, which used only the mortgage interest rate, not all the income was accounted for since principal payments on the mortgage were omitted. Using the band-of-investment method, appraisers capitalize the net operating income by straight-line capitalization. For example, suppose that the net operating income of a shopping center is $2.5 million. With a 10.86 percent overall capitalization rate, the indicated market value would be $23,000,000 by straight-line capitalization; $2,500,000/. 1086=$23,020,257=$23,000,000 (rounded), If sales prices and net incomes are available for comparable properties, documentation of the capitalization rate would be made by the market comparison method. Market Comparison Method The appraiser using this method should ascertain that the sales selected are comparable with respect to location, property characteristics, and time of sale. For certain types of investment real estate, these data are often available from lenders and investors, in the case of a 54,560-square-foot community shopping center that was under valuation, the band-of-investment technique was supplemented with capitalization rates taken from recent sales of like property. In this instance, the shopping center was valued by reference to the overall capitalization rage of 10.5 percent, straight-lime capitalization. These, with their overall capitalization rate indicated, are shown in Table 10-5. Note that the sale comparisons are identified with respect to the date of sale and the size and age of each shopping center. In addition, data are verified by the gross rent multiplier, the sales price, and the expense ratio. Using such sales comparisons the appraiser can select the overall capitalization rate from market data that compare most favorably with the property valued. Other Yield Comparisons For some property types, band-of-investment data and market comparisons are not available. The appraisal of leasehold interests, leased fees, and special purpose properties, such as coalmines and quarries, are so unique that the adopted capitalization rate rests on yields earned from investments with similar characteristics. This type of analysis relates the capitalization rate to the return earned on invested capital. It is reasoned that the return on the real estate appraised must bear some relationship to yields earned in other ventures. For example, table 10-6 permits a comparison of yields and interest rates on selected investments over the last five years. Note that yields range from less than 5 percent (stocks) to over 10 percent for corporate bonds rated Baa. It should also be noted that the yield on stocks includes dividend yields only; capital gains are not shown. These comparisons tend to show the “sage” rate, which is usually the yield on government securities, and enable the appraiser to defend his capitalization rate by referring to yields on investments of like certainty and risk. Table 10-5 A summary of Shopping Center Sales Showing the Overall Capitalization Rate sale Date of sale Size age Gross rent multiplier Sales price per square foot Expense ratio Overall capitalization rate 1 June 1977 88,840 1972 8.16 $28.95 .14 .102 2 Mach 1978 59,940 1974 8.6 $25.78 .14 .097 3 December 1977 60,840 1974 8.6 $26.76 .15 .097 4 October 1978 145,459 1973 7.8 $27.33 .18 .106 5 December 1977 158,257 1970 8.0 $18.44 .14 .10 6 December 1977 134,170 1974 8.6 $23.85 .14 .097 7 December 1977 80,012 1963 7.2 $16.67 .17 .11 8 April 1978 13,646 1972 6.9 $27.85 .21 .108 9 December 1977 85,245 1972 8.3 $19.31 16 .102 10 June 1977 82,265 1967 7.1 $13.76 .17 .11 11 July 1976 88,231 1973 8.0 $17.17 .18 .103 Table 10-6 Yields and Interest Rates on Selected Investments: 1972-1977* Investments 1972 1973 Year1974 1975 1976 1977 Prime commercial paper 4.69 8.15 9.87 6.33 5.35 5.60 Prime bankers’ acceptances 4.47 8.08 9.92 6.30 5.19 5.52 Federal funds rate 4.44 8.74 10.51 5.82 5.05 5.45 U.S. government securities, taxable: 3-month: Market yield 4.07 7.03 7.84 5.80 4.98 5.06 Rate on new issues 4.07 7.04 7.89 5.84 4.99 5.14 9-to10-month 4.86 7.30 8.25 6.70 5.84 5.91 3-to 5-year 5.85 6.92 7.81 7.55 6.94 6.77 State and local government Aaa 5.04 4.99 5.89 6.42 5.66 5.25 Corporate Aaa seasoned 7.21 7.44 8.57 8.83 8.43 8.04 Corporate Baa seasoned 8.16 8.24 9.50 10.39 9.75 9.00 High-grade municipal bonds (standard and Poor’s) 5.27 5.18 6.09 6.89 6.78 5.62 Home mortgages: FHA-insured, new yield 7.53 8.19 9.55 9.19 8.82 8.27 Conventional, new 7.64 8.30 9.22 9.10 8.76 8.74 Conventional, existing 7.70 8.33 9.23 9.14 8.92 8.75 Corporate bonds (Moody’s Investors Service) 7.63 7.80 8.98 9.46 9.01 8.47 Industrials (40 bonds) 7.35 7.60 8.78 9.25 NA NA Railroads (29 bonds) 7.98 8.12 8.89 9.35 NA NA Public utilities (40 bonds) 7.74 7.83 9.27 9.88 NA NA Stocks: Preferred (Standard and Poor’s 10 stocks) 6.89 7.23 8.24 8.36 8.06 7.63 Composite (500 stocks) 2.84 3.06 4.47 4.13 NA NA *Data are as of may 28, 1977. Source: Data are compiled from various issues of Statistical Abstract of the United States, Federal Reserve Bulletin, Economic Indicators, and Survey of Current Business. SUMMARY In the income approach, it is assumed that market value is equivalent to the present worth of future, anticipated income. Consequently, the method depends on the accurate estimation of annual future gross incomes, operating expenses, and the appropriate capitalization rate. Figure 10-2 diagrams the main steps necessary to the income approach. Note that the gross possible income, the vacancy and bad debt allowance, the net operating expenses, and the capitalization rate are derived from empirical evidence. Given these data, the selection and application of the appropriate capitalization method leads to market value under the income approach. The main advantages of this technique lie in its importance to mortgage lenders who look partly to the expected income as a source of loan repayment. In addition, appraisals based upon capitalization of net income eliminate the subjective estimates of reproduction costs and depreciation as well as the personal judgment involved in adjusting comparable sale. There is another, more practical advantage: it is contended that income properties are commonly bought and sole on the basis of the expected net annual income. In applying the income approach, operating expenses are deducted from effective gross income, which is gross income less an allowance for vacancy and bad debts. The gross income estimate must be stabilized according to future expectations. The current or contract rent (the actual rent paid according to a lease contract) may not be relevant for valuation purposes. Instead, appraisers rely on the economic (market) rent for appraisal purposes. Generally speaking, the more uncertain and risky the gross income, the greater is the capitalization rate used to convert annual net income to value. In calculating annual operating expenses, appraisers must generally add certain items that are usually omitted from records of actual cash outlay. The more common items that must be added to an annual income statement for appraisal purposes include annual repair expenses, replacement costs of equipment and furniture, management expenses, an annual allowance for redecorating, and other maintenance expenses. At the same time, certain other expenses that are allowable as income tax deductions must be omitted for appraisal purposes. Personal business expenses unrelated to income property operation, certain additions and betterments, net income taxes, mortgage payments, and owner salaries or drawing accounts are the most common items in this category. After adjusting the income statement for these items, appraisers stabilize annual operating expenses in the light of reasonable expectations in the near future. An annual estimate of operating expenses may include variable expenses, which increase with an increase in occupancy, and fixed expenses, which occur independently of occupancy levels. Expense ratios taken from published reports should be used only as a general guide. The estimate of operating expenses preferably is derived from a study of past operating expenses, their trends, and the operating expenses of similar properties. The three main methods of selecting capitalization rates are the band-of other yield comparisons. The band of investment refers to a system of weighting the returns earned on the mortgage and equity interest. If the mortgage interest rate is used to weight the returns, there is no provision for capital recapture. The resulting weighted capitalization rate must be supplemented by an allowance for capital recapture if the appraisal includes depreciable property. The mortgage constant, which requires knowledge of the loan-to-value ratio, the mortgtage4 interest rate, and the term of the mortgage, produces the overall capitalization rate, including capital recapture. Appraisers who use this overall rate4 for appraising property with buildings employ direct capitalization. With the availability of sales data and net income for comparable properties, the appraiser can analyze the overall capitalization rate for properties closely similar to the property appraised. Again, this gives the overall capitalization rate, which includes provision for capital recapture. In other instances, for property that is not normally financed with a first mortgage and that is infrequently sold, capitalization rages are derived from a study of yields on comparable investment risks.