When valuating real estate property, one of the most important things is to look at is the location. But there are also other aspects that have to be taken in to account, think about the state of the construction for example or the size of the property, and also supply and demand markets play a big part in the analysing process. This analysis can be formed by creating and using a checklist to describe and measure the impact of the aspects mentioned above. Conclusions and assumptions can be made by implementing subjective variables (for example ‘object risk’), together with more measurable variables like ‘rent level’ or ‘building costs’ into an excel model to valuate the real estate property.
The right information needed to complete the model will be gathered during visits to Paraisopolis, one of the so called favelas of Sao Paulo. Visits will probably take place on Tuesday 14-04-2009 (and Wednesday 15-04-2009 if necessary) and will be guided by SEHAB, therefore caution of the independence of the investigation should be guarded.
A reference excel model for Dutch housing will be used (distributed by ROZ, ‘Raad voor Onroerende Zaken’), this model will be adapted to form an accurate valuation of the housing in the Brazilian illegal settlements. (Method)
A reference excel model for Dutch housing will be used (distributed by ROZ, ‘Raad voor Onroerende Zaken’), this model will be adapted to form an accurate valuation of the housing in the Brazilian illegal settlements. (Method)
Intervention and investment in a certain place has consequences for the surrounding area. Land and property value will change during the planning and creation of future developments. Houses and land will decrease in value if there is for example a plan to create a big public park and houses have to be demolished (‘Pantanal’), but houses and land will rise in value while interventions are being made without demolishing the nearby houses. The housing market in the favelas seems to be fluctuating a lot, but is this really the case. What do people want to pay, and what is the actual value of the property and is the price versus quality in proportion?
It is difficult to say when an intervention in a favela should take place, when information about the evaluation and growth in the beginning of ‘phase one’ (see Eagerly taking risks) is scarce while the possibilities at that point are endless. While continuing in time (‘phase two’ and ‘phase three’), the stream of information increases but the possibility to intervene without the cause of too much trouble decreases. (Questions/problem).
The excel model will be useful for investors (private or commercial) to define the actual value of a real estate property at a certain moment in time. A comparison between areas or property can be made and the model can help in the form of a decision tool. To use the model a manual or at least a description has to be made. (Goal)
