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Mr . Robert Delaney <br /> Page 4 <br /> December 3, 1982 <br /> Capitalization: <br /> Capitalization Rate <br /> 1st Mortgage 75% x . 1493371 = . 1120028 <br /> Equity 25% x . 12 = .0300000 <br /> Overall Capitalization Rate = . 1420628 <br /> Valuation: <br /> $203,677 T . 1420028 $1 ,434,317 <br /> Surplus Land Contribution 490,050 <br /> Total Indicated Real Estate Value $1 ,924,367 <br /> REVISED INCOME APPROACH -- MORTGAGE-EQUITY ( 12/3/82) <br /> The changes in assumptions in this method include the higher mortgage, <br /> interest rate. The net income that has been capitalized is the same <br /> as developed in the Revised Income Approach. <br /> Assumptions: <br /> Net Income before Debt Service (as before) $ 203,677 <br /> Available Mortgage Loan - 75% Ratio <br /> 14.75% Interest - 30 Year Amortization <br /> Equity Dividend Rate - 12% <br /> Change in Property Value - 5-year Projection <br /> Period + 10% <br /> Capitalization: <br /> Basic Rate . 140409 <br /> Less Appreciation ( . 157407 x 10%) .015740 <br /> Overall Capitalization Rate . 1�2 b169 <br /> Indicated Value - $203,677 T . 124669 $1 ,633,742 <br /> Surplus Land Contribution 490 050 <br /> INDICATED VALUE - INCOME APPROACH - Mortgage-Equity $2, 123,792 <br /> RECONCILIATION AND CONCLUSIONS <br /> 1 . The Carbondale area has had a significant amount of new <br /> residential construction and growth during the last three <br /> years in spite of poor market conditions due to high <br /> interest rates . <br />