Reply To: Spanish property market 2008: soft landing or train wreck?



“Few in this industry understand the difference between income capitalisation and comparative sales method” – Those that don’t are called “cowboys” and what makes it a farce that someone buys one or two properties to let and immediately calls themselves a property investor.

“the income capitalisation method assumes that the property is deriving a higher than normal rental income” – This not being the case with commercial property investment, otherwise you get into the situation of over-renting which will not be of interest to institutional investors, therefore the CV will be lower.