The course aims to provide the basics of macroeconomic theory and the functioning of a modern market economy. It covers national income, its determination and distribution; fiscal policy and taxation; Banking and monetary policy; International trade, balance of payments and the theory of comparative advantage; economics of tariffs and world trade organization and regulation.
CMT students as well as EMV students are prepared to run different construction and property management projects, which involve the management of related contracts, in terms of their negotiation, drafting and management. Therefore, they need to learn all those processes, how contracts are legally and validly created, managed and phased out. The Module of Law of Contract and Agency has three main parts: the Law of Contract, the Agency Contract and Contracts subordinate to Agency. In addition to class sessions that can be delivered face to face or through E-learning platform, students are given legal instruments including the Contract Act, to be analyzed and discussed as part of take home works and presented in class, where applicable. The take home works are guided by questions that enable students to read the legal texts while looking for answers. Practical cases are also assigned to students, for them to learn how the contract acts are interpreted by judges, parties and advocates/lawyers, while dealing with specific contract cases. You are welcome to this very interesting module
Welcome to EMV1265 (Real Estate Valuation I) Lecture
Dear EMV year I Students,
It is my pleasure to teach you Real Estate Valuation I module. As every property is unique, the valuation of property presents many challenges and has a strong influence on the financial viability of both existing buildings and the development process. General valuation methods for valuing commercial property, residential property, industrial property and land will be introduced.
The aim of this course is to develop the students’ understanding of the underlying principles of property valuation and to equip them to apply valuation methods and techniques. The course builds on the basic principles established at stage 1 and establishes a sound basis for further detailed study at stage 3. It develops students’ awareness of how the valuation process operates and their understanding and abilities to carry out rudimentary valuations by solving authentic property valuation problems and gaining familiarity with the reporting process.
At the end of this module, you will be able to:
1. Knowledge and Understanding
Having successfully completed the module, students should be able to demonstrate knowledge and understanding of:
1.1 Identify and discuss the role of valuations and the market environment in which they are performed.
1.2 Evaluate and explain the reasons for uncertainty in valuations.
1.3 Perform and appraise valuations of non-standard lettings and properties;
1.4 Determine Land values for small and large scale land.
1.5 Identify the factors affecting Value.
1.6 Use of 3 international valuation approaches
- 2. Learning outcomes:
Topic 1:
At the end of this unit, you will be able to:
1.Understand the meaning of Valuation, Valuer and valuation surveyor
2. Understand Historical perspective of valuation in Rwanda
3. Discuss Role of Valuer or valuation surveyor
4.Know
who should deal with Valuation in Rwanda
5.Differentiate value, cost, price, cost vs. value
6. Know different types of value
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 2:
At the end of this unit, you will be able to:
1. Define real property, Real estate
2. Understand features of real property or real estate
3.Analyze factors affecting real property or real estate value
4.Define market, real property market
5.Highlight Features of real property market
6. Discuss factors affecting real property market
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 3:
At the end of this unit, you will be able to understand comparative method of valuation:
After completing this lesson, the student should be able to:
1. Explain the steps in the direct comparison approach.
2. Relate the direct comparison approach to its underlying economic principles.
3. Identify the data required to make a direct comparison analysis.
4. Explain and justify the sources of data used in the direct comparison approach.
5. Describe the various methods of making adjustments in the direct comparison approach.
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 4:
At the end of this unit, you will be able to understand comparative method of valuation:
After completing this lesson, the student should be able to:
6. Explain how the adjustment process is applied to valuation.
7. Identify the units of comparison which are applicable to residential properties.
8. Explain the term reconciliation as it applies to the direct comparison approach.
9. Explain the direct comparison approach's applicability and its limitations
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 5:
At the end of this unit, you will be able to understand cost method of valuation:
After completing this lesson, the student should be able to:
1. Understand theoretical breakdown of land and buildings based on market comparisons.
2. Compare the cost to develop a new or substitute property with the same utility as the subject.
3.Understand Application of approach requires consideration of two cost bases – reproduction cost (exact replica) or replacement cost (substitute of similar size and utility).
4. Deduct depreciation from the costs new to arrive at the depreciated cost.
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 6:
At the end of this unit, you will be able to understand cost method of valuation:
After completing this lesson, the student should be able to:
5. Estimate depreciated value of any other contributing improvements, including site improvements.
6. Estimate value of the site as though vacant.
7.Determine market value by using cost approach
8. Adjust for any personal property and if value is not fee simple, then adjust for relevant property rights.
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 7:
At the end of this unit, you will be able to understand income method of valuation:
After completing this lesson, the student should be able to:
1. Research income and expenses for the subject and the comparables.
2. Estimate the potential gross income (PGI).
3. Estimate vacancy and collection allowances.
4. Subtract vacancy and collection from the PGI to arrive at Effective Gross Income (EGI).
5. Estimate total operating expenses - fixed and variable.
6. Subtract expenses from the EGI to arrive at the Net Operating Income (NOI).
7. Apply the direct capitalization rate to the NOI to arrive at a value.
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 8:
At the end of this unit, you will be able to understand investment method of valuation:
After completing this lesson, the student should be able to:
1. To explain what is investment value?
2. Importance of investment value
3.How to determine investment value
4.Investment value vs. Market value
5.Valuation techniques
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.
Topic 9:
At the end of this unit, you will be able to understand valuation table:
After completing this lesson, the student should be able to: 1.Introduction to compound interest and simple interest.
2.Amount of one Franc
3.Present Value of One Franc
4.Amount of One Franc’ Per Annum’ (APA) table
5.The ‘Annual Sinking Fund’ (ASF) table
6.Years’ Purchase’ (YP) Single Rate table
7.Years’ Purchase in Perpetuity’ (YP in Perp.) table
8.perpetual annuity
9.Practical exercises: Solving problems
10.Professional memberships and Associations
Topic 10:
Practical exercises
Where and how is this unit outcome assessed? This outcome will be assessed online. Through provided readings, students will respond to asked questions. Online quiz will also be given for assessment.