A note on “The initial yield revealed: explicit valuations and the future of property investment” Available to Purchase

A response to the article by Baum and MacGregor (1992), “The initial yield revealed: explicit valuations and the future of property investment”. Contends that the concept of “underlying investment value” proposed is specific to individual potential purchasers or to an individual owner. Points out that the application proposed for “underlying investment value” is similar to the capital budgeting process and to earlier proposals for a process of investment selection in American valuation literature. Baum and MacGregor put forward “a modern explicit method of valuation”, which is, in principle, the “summation method” and this, too, has been part of American valuation literature for some time. Criticisms of the summation method are equally applicable to the modern explicit method, but they have not been seriously addressed by Baum and MacGregor. Includes corrigenda to the original article.