income approach method

APRIL 2023

Group: 212032_86

William Hernández Guevara

UNAD

Income approach method

UNAD

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The income approach is a real estate valuation method popular with real estate investors that prioritizes the income a property generates, they use the income approach to value a property based on its net operating income, which in a general sense, is the income a property generates minus operating expenses.Investors also use the cost and sales comparison approaches, as each method has its advantages and disadvantages.

Income approach method

UNAD

PIB = Renta Nacional Total + Impuestos a las Ventas + Depreciación + Renta Neta de Factores Extranjeros Total ingreso nacional = Suma de renta, ganancias de salarios. Impuestos de ventas= impuesto por un gobierno sobre las ventas de bienes y servicios. Depreciación= la disminución en el valor de un activo. Ingresos netos de factores extranjeros = Ingresos obtenidos por un factor extranjero, como la cantidad que una empresa o una persona extranjeras gana del país

Mathematical formula

Measures the buyer's risk against the company's potential earnings, Two methods are used to arrive at a value: compounding and discounting. Both methods use a formula to calculate the value of the business based on future earnings. While capitalization uses a formula based on past performance, the discount formula takes into account the risk factors assumed by the buyer.

Related processes

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