Price and current lease A property is bought for £10 million and the buyer incurred additional costs of 6.8% for land taxes, broker and lawyer. The rent is based on a full repair and insurance (FRI) contract of £800k per year, paid quarterly in advance. The Estimated Rental Value (ERV) is £900k. Rental growth – … Continue reading DCF Test
How to build a real estate financial model from scratch
A Financial Model is a structured and dynamic tool which links inputs/assumptions with periodic cash flow to produce results used for investment decisions or recommendations. They are mathematical models designed to represent a simplified version of a financial asset’s performance. Financial models ‘model’ or replicate real life financial issues based on assumptions so outputs are … Continue reading How to build a real estate financial model from scratch
Property Development: is this the right time to invest?
Making predictions Predicting the property market, when it is at its peak or its lowest is difficult. However, for a property developer, the time is right if they can mitigate risk. In order to make informed and effective decisions, developers need to have a deep understanding of their market. It is the length of the … Continue reading Property Development: is this the right time to invest?
What has the spring budget offered the property market?
Rishi Sunak last week delivered a £65billion spring budget, but what has it offered the property market? Cambridge Finance has reviewed the key elements of the budget which affect the property industry and consider their implications. Stamp duty holiday extended for an additional 3 monthsa welcome measure to continue the house buying surge but is … Continue reading What has the spring budget offered the property market?
Roadmap out of Lockdown
As Boris Johnson announced his roadmap to ease lockdown restrictions, we look at how Cambridge Finance has navigated the pandemic and how we are converting this experience to bring best in class training for all our delegates. Training before Covid-19 Prior to lockdown, all of Cambridge Finance courses were delivered face to face in central … Continue reading Roadmap out of Lockdown
Co-Living – what is it and why is it gaining in popularity?
Co-living is where three or more tenants, not from the same family or household, share living accommodation. This scenario is common in cities such as London where the cost of living is high. Other advantages of co-living are reduced utility costs as this is shared among the tenants or included in the rent and the … Continue reading Co-Living – what is it and why is it gaining in popularity?
UK Government – planning for the future
Written By Danass Maddison Proposals intended to streamline and modernise the planning process Current system Currently, the government uses the system based on the Town and Country Planning Act 1947. The act calls for local authorities to prepare local plans setting out proposals for the use and development of land within their area, showing an … Continue reading UK Government – planning for the future
Financial metrics commonly used by loan underwriters (part 02)
By Victor Alarsa If you are looking to get into Real Estate financier, here you will find a few metrics commonly used by loan underwriters. As discussed in part 01, covenants are financial metrics used by lenders to determine how risky lending capital might be for a given project. We learnt about LTV/LTGDV/LTC, and now … Continue reading Financial metrics commonly used by loan underwriters (part 02)
Financial metrics commonly used by loan underwriters (part 01)
By Victor Alarsa If you are looking to get into Real Estate financier or just being more familiarised with its vocabulary, here you will find a few metrics commonly used by loan underwriters. The daily life of a developer is not easy. They need lenders to help them to finance their developments, but lenders do … Continue reading Financial metrics commonly used by loan underwriters (part 01)