Assumption Financing and Property Values: A New Perspective and Valuation Implications
||Assumption Financing and Property Values: A New Perspective and Valuation Implications
||10th European Real Estate Society Conference (10-13 June 2003) Helsinki, Finland
||This paper benefits from the Adjusted Present Value (APV) in advancing a theoretical framework for valuing properties financed especially under assumption financing. We use APV to show that the valuation process should first establish a subject propertyís all-equity value. Once this is accomplished, APV suggests that an analyst consider various incremental values from using debt financing and that those deemed belonging to the seller be added to the all-equity value to establish a final property value.
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||Session 6, Valuations for Special Purposes
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