“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle” The Art of War
Much like managing risk/valuation in property, to ensure profitability in any project, you must know what potential problems you’ll need to deal with before it arises at every stage.
A program like Estate Master affords developers complete control over a project from start to finish consisting of:
- DF [Development Feasability] – Used to determine the best financial outcome for development opportunities
- IA [Investment Appraisal] – Calculates property value and investment returns on real estate assets
- DM [Development Managemet] – Manages property development projects from start to finish
- CC [Corporate Consolidation] – View stages of a single project side-by-side or entire property portfolio
These four components can be implemented separately for specific needs. However, the real power is when the four components are deployed as a single integrated suite. It allows you better control of the financial information throughout the entire life-cycle of projects. Figure i. illustrates how the separate components are integrated into a complete-suite:
To be honest, it was a bit hard to get a lot out of this presentation as Alex was really just introducing estate master (the program) and what each component does. Unlike major topics such as GIS (Geographical Information Systems), there was too much information on just the program side of things for me to formulate any decent opinions on the role of IT in property valuation.
It’s a bit like discussing ArcGIS the program, rather than GIS as a whole, why I thought the class had so little questions for Alex compared to the previous week for Borce. To support my opinion, as I recall, the only question asked was by probably the brightest student in the grade (although I don’t know his name, he was good at built environment law), and that was in regards to how much estate master would cost to run.
Unlike the heading of this presentation, it was more like the Role of Estate Master in Property Valuation.
Might as well watched this instead…
However, I still did manage to gather some insights, and that is programs like Estate Master give developers greater financial control over projects from its development feasibility stage (to see if it is worth doing) to post-construction investment analysis (to see if it was worth doing). One thing is for certain, and that’s that IT provides improved control in property valuation thereby reducing overall risk. IT allows raw data to be analysed/cross-analysed from all angles to ensure accuracy and profitability for developments to occur. This brings me back to the quote which started this post and that is in short; you must know of all the risks involved and be in a position to control those risks in order to achieve a favourable outcome (profit!).
- Topic 2 – IT & Property Valuation – Alex Moffatt (razahalidovic.wordpress.com)
- list of speakers (jimmyle9.wordpress.com)
- Alex Moffat (cav710.wordpress.com)
- Topic: Estate Master Role of IT in Property Valuation (johnnyyyblog.wordpress.com)