Class RealEstateValuation

java.lang.Object

org.episteme.social.economics.RealEstateValuation

public final class RealEstateValuation
extends Object

Utility class for real estate valuation using common financial methods such as capitalization rate (Cap Rate) and discounted cash flow (DCF).

This class provides static methods for property valuation calculations commonly used in real estate investment analysis.

Version:

6.0, July 21, 2014

Author:

Jacob Dixon

Method Summary

Modifier and Type	Method	Description
static Real	valuateByCapRate(Real netOperatingIncome, Real capRate)	Calculates property value using the Capitalization Rate formula.

Methods inherited from class Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Method Details

valuateByCapRate

public static Real valuateByCapRate(Real netOperatingIncome,
 Real capRate)

Calculates property value using the Capitalization Rate formula.

The formula used is: Value = NOI / CapRate

Parameters:

netOperatingIncome - the annual net operating income (NOI) of the property.

capRate - the capitalization rate (as a decimal, e.g., 0.08 for 8%).

Returns:

the estimated property value as a Real number.

Throws:

ArithmeticException - if capRate is zero.