Price, value and worth are very different concepts: but of the three worth is the basis on which investment decisions should be made.’ Discuss. (11 marks)

b. You are acting for a developer company who wishes to purchase a small re-development site with planning consent for the erection of 6 ‘executive-style’ houses each with a floor area of 170 square metres gross internal area. The site currently has a single house on it that will need to be demolished at a cost of £50,000. Given an estimated eventual sales price for each house of £1,000,000 and build costs of £1,750 per square metre (before fees and finance) and making all other reasonable and necessary assumptions, advice as to a reasonable price for them to offer. (11 marks)

c. Define the difference between and effective and a headline rent. If a property has just been let on a headline rent of £80,000 but with a rent free period of 2 years, what is the effective rent given that yields for such a property are in the region of 5%. (11 marks)

d. What do you mean by ‘green certification’ and why do some investors seek to purchase certified buildings? (11 marks) e. ‘There is no such thing as perfect comparable evidence.’ Discuss. (11 marks)

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