In property valuation,how important is covenant strength and how is it Essay

In property valuation,how important is covenant strength and how is it reflected in valuation - Essay Example Determining the financial capabilities of tenants is important since it gives clear details about potential or existing tenant who can be an individual or a corporate. The credit worthiness of existing and potential tenants contributes to the value of a property. It is therefore an important factor in yield adjustments. Firstly determining the strength has great importance to property owners. According to Fishers model, return on investment is a reward for liquidity loss, risk assumed, and expected inflation (Norman, 2008). Property owners also consider covenant strength to be an important aspect of the housing industry. Property owners are investors in the housing industry and therefore they assume risks. In addition, the value of rent is subject to inflation considering the appreciation and depreciation of property value. The variable enables property owners to determine the possible income from their investment for a given period. Determining tenant’s financial abilities also enables the property owners to determine their expected income or possible losses. The proprietors also need to determine the value of their property at a given time. The strength therefore enables property owners to determine their yield with a high degree of accuracy. Properties are common form of security for loans due to their low liquidity. Lenders also consider covenant strength as an important factor on their business. The factor gives the reward of liquidity on a property (Norman, Alastair, & Nicky, 2011). It also gives the possible risks in constant inflation. These variables are important to lenders since they enable them to determine the credit worthiness of a property owner. The factors also enable lenders to determine the optimum capital that a given property can secure. Finally, lenders also need to determine the return on liquidity in case they need to recover their cash from a defaulter. In such cases, tenant’s financial position proves to be of

Adding value through marketing Essay Example | Topics and Well Written Essays - 1500 words

Adding value through marketing - Essay Example In today’s world, consumers are being bombarded with a multitude of products and services with the entailing cacophony of messages that vie for attention. The result is an increasing confusion and indifference on the part of the buying publicEvaluate the extent to which a sustainable and green approach to marketing can add positively to the bottom line in an age of consumer confusion and possible indifference. In today’s world, consumers are being bombarded with a multitude of products and services with the entailing cacophony of messages that vie for attention. The result is an increasing confusion and indifference on the part of the buying public. This can breed consumer discontent that, in itself, is becoming increasingly difficult to address. According to Kaptan (2003), if this confusion, indifference and discontent are not dealt with successfully, any relief created will be transitory and that later on new symptomatic issues and complaints would arise. (p. 45) Ther e is, hence, a need to introduce products and services and build brands that aim to rise above the rest. This objective is best served by adopting sustainable and green approach to marketing. The Concepts Essentially, green marketing is the holistic marketing concept wherein production, marketing consumption and disposal of products and services happen in a manner that is less detrimental to the environment, especially with growing awareness and consideration to prominent environmental issues like global warming, non-biodegradable solid waste, harmful impact of pollutants, and so forth. (Chandrasekar 2009, p458) Sustainability follows and reinforces the same principle, and is characterized by activities that seek to change existing framework in favour of sustainability. (Saren et al., p205) Pursing this strategy is significant to consumers for several reasons. The most important of these include: its contribution to the consumer’s â€Å"empowerment† since it allows the consumer to make a difference by using â€Å"green† products and services; and, it provides credibility since sustainability related claims can make consumers believe and trust in the product. (Ottman 2011, p110) The gist of the benefits of sustainable and green marketing is that their associations with the positive impact to environment provides a product or brand a mantle of uniqueness and responsibility that adds value in the eyes of the buyers. Successful sustainable and green campaigns include the Levi’s recently launched Eco line of 100 percent organic cotton jeans; Wal-Mart’s â€Å"Green† push consisted of diverse initiatives such as reducing energy waste, opening green supercenters, stocking more organic products, and working with suppliers to get them on board as well. (Hawkins & Mathersbaugh 2010, p102) Ottman emphasized that sustainable and â€Å"green† products offer tangible and direct benefits that are actually meaningful and importa nt to a number of consumers. (p110) Making a Difference The principles at work here is that green products can rise above the din of commerce that are peppered with superficial solutions to individual needs. Slater pointed to the social dilemma that emerges as a consequence. In his view, the production of more goods and services that provide false satisfactions to human needs in greedy pursuit for profit contribute to the increasing disorganization, disorientation and confusion not just with regards to their needs but also their identities. (p126) In the past, marketing and advertising could have gotten away with it with what Slater called as: an innumerable series of images are forced upon the individual, like mirrors, seemingly empathetic and totally credible, which bring their secrets to the surface and display them there. In these images, people are continually shown the unfulfilled aspects of their existence. The illusion ingratiates itself, promising satisfaction; it reads des ires in one’s eyes, and brings them to the surface of commodity. (p126) The problem now is that consumers have been satiated with these messages and strategies. This and the crass materialism had not satisfied many people’s innermost desires. (Sattar 1992, p. 41) One may say that, today, the average buyer is both aware and confused about the way products are pandered to him. Slater