THE APPLICATION OF INCOME APPROACH IN PROPERTY VALUATION IN POLAND

Information
Title: THE APPLICATION OF INCOME APPROACH IN PROPERTY VALUATION IN POLAND
Issue: Vol. 3, No 2, 2010
Published date: 20-11-2010 (print) / 20-11-2010 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Maria Trojanek
Keywords: property value, market value of a property, property valuation
DOI: 10.14254/2071-789X.2010/3-2/4
DOAJ: https://doaj.org/article/3eacc527b56947e5b6ddc2ff4fd5d5f8
Language: English
Pages: 35-47 (13)
JEL classification: D23
Website: https://www.economics-sociology.eu/?115,en_the-application-of-income-approach-in-property-valuation-in-poland
File http://www.economics-sociology.eu/files/05%5B7%5D.pdf
Abstract

The income approach is mainly applied in calculating market value of properties, which earn or might earn income. The approach may also turn useful in the process of estimating the non-market value of a property (e.g. mortgage lending value). Calculating market value with the application of the subject approach means estimating the market value of the right to receive infinite income flows. However, the correctness of calculations depend on the correct estimation of rental rates, capitalization rates, discount rates, and other parameters reflecting the market segment represented by a valued property.