On Mon, 23 Oct 2006 17:22:40 +0100, Adrian Scott wrote: >AIUI (confirmation, Eugene?) BW manages its investment property using >the conventional principle that real capital value must be maintained >or increased as the *first* priority, and income generated and taken >second. > >There is a conventional practice for comparing such a portfolio with >how it was at some chosen previous time. Just boring bookkeeping >really -- no clever stuff. This is to appraise all the properties at >market value (i.e. what they would fetch if sold) in both cases, using >market parameters current at the time of the valuations, and adjust >the total value of one (usually, the past one) by the inflation that >has occurred since the chosen past date, and by any capital added to >or removed from (i.e. not reinvested in) the portfolio during that >period. > >My impression (I'm too lazy to do the tedious investigation) is that >the value of the portfolio has been growing steadily, as well as >providing useful income (again, confirmation, Eugene?).
In recent years it would have taken some fairly dramatic mismanagement to fail to increase in value - I know the value of my "property portfolio" (house) has grown spectacularly. Returning to the idea of funding the waterways through property, what happens if there is a property value slump or living by canals suddenly becomes unfashionable? Or what happens if the management decide to do something that sounds very reasonable - albeit slightly risky - and end up getting badly burned? Suddenly we are back in the position of no money for the waterways. -- On-line canal route planner: http://www.canalplan.org.uk (Waterways World site of the month, April 2001) My Reply-To address *is* valid, though likely to die soon Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/canals-list/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/canals-list/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
