Yield-Based Valuation of an Investment Property
Yield-based valuation: how to value a rental property from operations and yield requirement — net rent, return, and the pitfalls that skew the number.
Analysis and perspectives on property development, data and building software in a traditional industry.
Topics Property valuation · Investment property · Yield · Market rent · Due diligence
Follow via RSSYield-based valuation: how to value a rental property from operations and yield requirement — net rent, return, and the pitfalls that skew the number.
Environmental due diligence: check V1/V2 soil contamination mapping, flood and climate risk on a site before you buy. How to screen environmental risk early.
Technical due diligence (TDD) on property: reviewing building data, building lines, road access and BBR verification to uncover technical risk before the deal.
Legal due diligence on property: how to review title, encumbrances, easements and planning via the Land Registry and registers before signing a purchase agreement.
An outdated easement can block a strong project. Learn when an easement can be cancelled or amended, who holds the right to object, and how the process unfolds.
Before a property deal, verify title, encumbrances and burdens in the Land Registry. What each section covers, the pitfalls that derail deals, and what to clear at closing.
Easement and covenant are used interchangeably but mean different things in the Land Registry. Understand the terms, use vs. condition easements, and who is bound.
What is the BR18 energy frame requirement for new construction, what goes into the calculation, and how is it documented? A guide for housing and apartment builds.
When does a build require a certified structural or fire consultant under BR18? How construction and fire class drive the certification requirement.
A walkthrough of fire classes BK1 to BK4 in BR18, what determines classification, and when a build requires a certified fire safety consultant.
Understand the difference between structural classes 1, 2, 3 and 4 in BR18, what drives classification, and when a build requires a certified structural engineer.
Building rights are just a number until they become money. Turn floor area into a residual land value so you know what a plot can cost before you bid.
Plot ratio depends on use. The difference between residential and commercial — detached, low-density, multi-storey and commercial — and the impact on building rights.
Building zones and building lines decide where on a plot you can place a building. Read them from the local plan and the Land Registry, and see how they cut volume.
The height-limit plane often caps volume more than the plot ratio. Learn to calculate the sloping height-limit plane and the maximum building height on a plot.
The local plan process step by step: from draft and public hearing to adoption, what a section 14 ban means, and how a draft in hearing alters building rights.
How framework areas in the municipal plan set building rights: use, plot ratio and building height, and how they constrain a future local plan.
What zone status means for building: urban vs. rural vs. summer-cottage zones, when a rural-zone permit is needed, and how land moves into urban zone.
When a building project triggers a new local plan, what counts as major construction works, and what it means for your timeline and building rights.
When can a municipality grant a dispensation from a local plan under section 19 of the Planning Act? Plan principles vs. dispensable terms, and what to expect.
How a pre-application meeting with the municipality confirms building rights, dispensation appetite and requirements before you spend advisor hours.
How accurate is an automated property valuation? Here's what drives the accuracy, what confidence levels mean, and when an estimate can stand on its own.
Condition level is one of the factors that moves price per m2 the most. Here's how condition is assessed, the typical levels, and why two similar homes differ so much.
VAT on building sites surprises many. Learn when the sale of a plot is VAT-liable, what applies to serviced land, and how VAT affects the plot price.
VAT and tax on real estate often shape the deal structure. Get an overview of VAT on building sites, new buildings, adjustment liability, capital gains and duties.
How to go from a cadastral parcel to the beneficial owners behind a property — via the owning company, the ownership chain and the people — so you know who you deal with.
Beneficial owners and legal owners are not the same. Understand the difference, why it's decisive in property deals, and how to find the real owner behind a company.
How to run a background check on a property company: find the beneficial owners, map the ownership chain and read the corporate structure before you sign.
V1 means suspected, V2 confirmed contamination. Learn the difference, the requirements and surveys mapping triggers, and how to look up a site in the regional register.
The complete guide to environmental and climate risk on a building site: V1/V2 mapping, flooding, cloudburst, noise limits and radon — how to screen before you bid.
Data-driven property work turns scattered register data into concrete figures and reports. Here's how to tie energy label, ESG and building data into one decision basis.
A poor energy label can cost on price and financing. Here's how the energy label feeds into valuation, operations and lending on the existing market.
The energy label runs from A to G and reflects a building's energy use. Here's what the scale means, what it's based on, and how it affects value and letting.
BBR should never stand alone. How to cross-check building data against the cadastre, aerial photos, permit archives and the Land Registry to expose costly gaps.
The BBR use code drives taxation, lending and lawful use. Learn to read the code, know the common errors, and see what a wrong code means for a project.
Living area, heated area and footprint are three different figures in the BBR register. See the differences and which area to use for valuation and calculation.
Complete guide to the BBR building register as a data source: area concepts, use codes, build and renovation years, and how to verify building data against registers.
A restrictive easement can seal off the building envelope or kill a project late. See the easement types that most often block construction and how to spot them early.
Complete guide to market rent for residential and commercial property: how the rent level is set, documented with comparable leases, and tested when parties disagree.
How to calculate and interpret a price per square meter for an area, what pulls the figure up or down, and why the number of sales behind it is decisive.
A fast go/no-go screening saves costly advisor hours on projects that fail anyway. Get the framework to qualify more sites in parallel and back the few that hold.
Residual capacity is the gap between permitted and used building rights. Learn to calculate the unused building rights on a plot and spot densification potential early.
How the Danish Planning Act ties together municipal plans, local plans, framework zones and zoning status to decide what you can build on any plot.
Calculate building rights and plot ratio on a plot step by step: floor area, site area and what counts, so you know the real volume before you bid.
An overview of the key BR18 requirements for new construction: structural and fire classes, energy frame, indoor climate, accessibility and climate rules, and what triggers each.
A local plan (lokalplan) decides what you can build on a site. Here are the provisions that matter — use, floor area ratio, building zones and height — and how to find the real development right.
How a property is valued on the existing market: the factors that carry the estimate, what quality level means, and how to read the confidence behind the figure.
Run a construction project feasibility step by step: residual land value, build budget per m2, return requirements and profitability, before you bid.
A complete method guide to selecting comparable sales: radius, time horizon, comparability, and how many sales it takes to support a credible price per m2.
BBR is the first register most people look up. But the data is owner-reported and often out of date. Here's what BBR actually tells you, the typical errors, and how to cross-check it.
A Land Registry certificate reveals ownership, charges and easements that can block a project. Learn to read its three sections and uncover risk before you bid.
A complete guide to property due diligence: legal, technical and environmental investigation, data room and conditions before a deal, and how to structure the process.
The municipal permit process end to end: pre-application dialogue, application, dispensation, neighbour consultation, processing time and occupancy permit, to cut risk and waiting.
Before you bid on a site, eight things need to be settled. Here's the full due diligence checklist for property development — from development rights and registered encumbrances to soil contamination and utilities.
The difference between municipal plan and local plan explained: which document is binding, what framework provisions govern, and how they shape building rights on a plot.
No local plan on the site? How to find building rights from the municipal plan framework and the Building Regulations, and when a new project triggers a local plan requirement.
Gross floor area and building footprint are constantly confused. Get the precise difference, and what basements, attics and overhangs mean for plot ratio.
The residual method shows what you can pay for a site based on the project's economics. A step-by-step walkthrough of the calculation, pitfalls and interpretation.
Market value and the public property assessment are not the same. What each one expresses, why they diverge, and which to use for what in a transaction.
How to find the planning status of a cadastral parcel: zoning, local plan, municipal plan framework and draft plans in one place to clarify building rights fast.
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