international scientific-practical conference « real estate … · 2019. 11. 28. · cis hypzert...
TRANSCRIPT
International Scientific-Practical Conference
« Real Estate Valuation:
Changing Face of Mortgage Lending Valuation -
Experience from Germany and Europe »
21 - 22 November 2019
Reiner Lux
Reiner Lux, Managing Director of…
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Certification of real estate appraisers who carry out real estate valuations for the
Financial Industry
Development and distribution of the ‚LGD-Grading‘ (Loss Given Default)
Transaction database, assessment and analysis of real estate markets
Professional education and training of persons working in the valuation and
financing of real estate, preparation for the certification examination as real
estate appraiser HypZert for Mortgage Lending Valuation (CIS HypZert MLV)
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Shareholders of HypZert GmbH
Association of German Banks
National Association of German Cooperative Banks
German Savings Banks Association
Association of German Pfandbrief Banks
Association of Private Bausparkassen
Association of German Public Banks e.V.
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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Hyp
Zert
Val
uer
s
CIS HypZert (S) CIS HypZert (F) CIS HypZert (M) CIS HypZert (MLV)
1.960 HypZert Certified Valuers!
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Care Facilities
Retail
Hospitality & Restaurant Industry
International
Energy & Environment
Logistics
Agriculture
Industrial
NEW: Co-Working Offices
HypZert Professional Groups
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Professional Groups Publications (Extract)
Valuation of Logistics Properties (English version available)
Valuation of Retail Properties (English version available)
Valuation of Lodging Property (English version available)
Valuation of Nursing Homes
Valuation of Rehabilitation Centres
Valuation of Hospitals
Valuation of Industrial Properties
Valuation of Real Estate with Photovoltaic Systems
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Risk Management – Real Estate Collaterals
RiskManagement Real Estate Collaterals
Monitoring & Forecast
Determi-nation of
MLV
LGD Grading
Property andMarket Rating
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Challenges for the Future of Valuation
Six big challenges facing the valuation for the financial industry:
1. Higher volatility of capital markets and faster social upheavals
2. Various approaches for a sustainable value
3. Increasing regulation of the banking sector
4. Monitoring of banks
5. Digitisation and digitalisation
6. Big Data
What is Digitisation?
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Geoinformation and Digitisation
Computer Science Maths and Statistics
Software Research
Property Market
Expertise
Machine
Learning
Computer-Assisted
Property Valuation with
CIB+
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Standard Valuation – Income Approach
Depending on the valuation approach, overwritable suggested values can be added in
for:
assessment of location
guideline land value
construction costs (updated using the Building Costs Index [BPI])
operating costs
rents / prices
remaining useful life / total useful life
property yields / capitalization rates
DRC factors
regional factors
future price trends (5-year forecasts)
Inspection Service
and Application
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Home Page: Inspection Jobs
Jobs
All jobs – jobs with date – jobs without date – finished jobs –
declined jobs
Internal inspection
(address)
Contact person
Date/time
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Extract from Entry and Text Fields
Inspection
State of repair (choose)
Buildings defects
Other construction works
Summary and Overall evaluation
Integration of Geoinformation
Systems – Possible Uses
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Market Information System – Classification Web App
Market classification Germany
The app analyses and condenses
information on the state of the
German real estate market on
district level. The results are
shown in the map as “above
average/ average/below
average”.
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Market Information System – Comparative Data Analysis
Prices/sqm for owner-occupied
residential properties
(Euro/sqm)
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Example of Link to CIB +-: Analysis of Surrounding Area with POI
Area Map
Regional market information:
Inhabitants, unemployement
rate, purchase power, housing
stock, building permits, building
completions
Facilities in the Area:
e.g. child care, schools…
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Example of Link to CIB +: Monitoring
Price changes (within 3 years):
More than 12 %
9-12%
6-9%
3-6%
Less than 3%
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The Future of Valuations
The valuer as advisor?
Valuation
Provide independent valuations
Value up until the present day
Professional and independent
Impartial and objective
Market Value (or another basis)
Advisor
Provide commercial advice
Forward-looking advice
Professional and independent
Not impartial and objective
Not necessarily Market Value
Can a valuer perform both functions? What about liability?
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Skill-setProcess
Data
StandardsForward
Looking
Client
experience
The Future of Valuations
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Long Term Sustainable Value (L-TSV)
Initiative aiming to:• Define an international standard of a sustainable value• Avoid inconsistent standards in the application of regulation set by Basel
Status quo:• Definition of country specifics• Addition of a methodology for residential properties• Rules for a L-TSV deriving from AVM•
HypZert GmbH
Georgenstrasse 24
10117 Berlin
Germany
+49 (0) 30 206 229 265
hypzert.de