Frequently Asked Questions
Q. What do I receive?
A. The report you will receive will be similar in format to this sample report. It is intended that the format will remain largely the same so that clients can compare easily the financial performance of several possible properties over a period of time.
Q. How does it work?
A. We take your data, input it into the dothesums business model and produce a report, which will enable you to appraise your potential deal with confidence.
Q. How do you do forecasts?
A. Mathematical relationships are sought between past and present prices and also between a price to be forecast and other information, such as interest rates. If the relationship is strong enough to justify an attempt at forecasting, mathematical models are built to use in the forecasting process.
Q. Can you guarantee the forecasts?
A. No. The strengths and consistencies of the relationships that the forecasts rely upon vary greatly, so no individual forecast can ever be guaranteed. However, we attempt to optimise all forecasting technology to ensure that the most likely outcome, on the basis of the data history, is used.
Q. How accurate is the report?
A. The report is a projection of future values. However, it uses sophisticated techniques that have only been used on large capital projects. The forecast conclusions are an excellent guide in absolute and comparative terms, which will make your decision making more assured.
Q. How long does it take?
A. Generally the report can be compiled within two to three days at present. We have plans for the development of the site, which includes a rapid response suitable for on-site negotiation.
Q. How much does it cost?
A. The standard fee is £49.50 for the full report.
Q. Can I get a bulk discount?
A. Most clients want an appraisal prior to the purchase of a property, however where multiple reports are required, for example when reviewing a portfolio, then a discount may be negotiated. Please contact us for further information.
Q. Why include a measure of inflation?
A. Future earnings and costs are discounted in line with a forecast inflation rate. The value of a pound today is not the same as the value of a pound in say five years time. Any calculation involving amounts in the future, must reflect this change in value.
Q. Can income tax be used?
A. Tax – the default is at the standard rate of income tax.
However, specific tax computations can be made, if the client wishes to supply details of their tax position.
Q. Can buildings be depreciated for tax purposes?
A. Depreciation of buildings in the UK, is not generally allowable by HM Inland Revenue.
Q. How about other depreciation?
A. Depreciation of fixtures and fittings (contents) can normally be claimed.
Q. What period can be examined in the report?
A. In most cases the first five years of a project is given in the report and is normally sufficient to make a purchasing decision. Other projections can be made, but the further into the future the primary data is forecast i.e. interest, inflation and capital growth rates, the more problematical and less accurate the data becomes.
Q. What is a neighbourhood?
A. A neighbourhood is defined as a postcode sector. A postcode sector is the full postcode, but dropping the final two letters. So for the property postcode NE29 6XY, the postcode sector would be NE29 6.