Abstract
Content
- Introduction
- 1. Theme urgency
- 2. Goal and tasks of the research
- 3. Review of scientific works dedicated mass appraisal of urban land
- 3.1 Analysis of domestic publications and research works
- 3.2 Analysis of foreign publications and research works
- 4 Description of the chosen method
- 5 Stages of the research
- Conclusion
- References
Introduction
An important place in the economy of Ukraine takes the formation of the real estate market, which combined with the decision of a large number of tasks of a legal, social, economic, environmental, organizational and technical nature.
Urban lands generally include a complex set of objects of specialized property (land, not subject to market turnover) and the objects included in the selling of land relations. To allow full circulation of these objects primarily need information about their value, taking into account the specifics of the current urban land use and land market, as well as features of legal regulation of national and local legislation. [1]
Land appraisal activities are important not only for the taxation of urban land, but also for the implementation of property transactions with the land and the right of its lease on the secondary market. In addition, the assessment is a mandatory component of all investment processes. Therefore, the state of the land evaluation activities, the level of development of its theoretical and methodological basis of the rate of implementation depends not only land, but also social and economic reform as a whole. [2]
1. Theme urgency
Today in Ukraine normative monetary evaluation of land is a basis for taxation, determining state tax and other charges of a fiscal nature. However, in the approval of new financial and economic relations rises the question the wider application of market valuation base.
The mechanism of the normative monetary evaluation is based on the application of regulatory performance indicators and ratios that were set when making the normative monetary evaluation techniques 20 years ago and still never corrected.
Normative monetary evaluation is not provided to account for the changes taking place in the land market. Despite the fact that the conversion is carried out at a frequency estimate of 5-7 years, the calculation of the cost of land is made by the same factors, unchanging in time and do not take into account changes in the market. Without it leaves out such important factors of land value as the particular circumstances of the privatization transaction, supply and demand for land in a particular category or that region, investment conditions, etc.
Thereby, the introduction of new assessment tools that can provide the definition of cost-based indicators the value of land, it becomes quite urgent task. An effective way to solve this problem, given the international experience can be the creation and application of models of mass land valuation taking into account all aspects of the functioning of the land market, and the prospects of development of Ukraine as a state with a market economy. [3]
2. Goal and tasks of the research
Goal: To determine and rationale parameters of the mass monetary value of land settlements.
To achieve this goal the following objectives were formulated:
- The analysis of foreign and domestic experience in the study of mass monetary value of land.
- Selecting advantages and disadvantages of mass monetary value.
- Selecting parameters of monetary value.
- Identify the factors that affect the value of real estate.
- Determine the impact of the cost of improvements on the land.
The idea of the work is to identify and use the base value and the correction factors based on market data rather than on regulatory calculations.
The objects of the study are land settlements. The subject of the study is mass monetary value of land.
3. Review of scientific works dedicated mass appraisal of urban land
In accordance with the fundamental book of the International Association of tax assessors "Organization of assessment and taxation of real estate", edited by Joseph. K. Eckert [4], the mass appraisal is the systematic evaluation of the group of real estate (in this case, land) on a particular date using the standard methods and statistical validation of the results [3].
In international practice, the mass economic evaluation of urban land property is used for a few decades and is an integral part of Land Registry. [1]
3.1 Analysis of domestic publications and research works
Over the past 10-15 years, were published many works of scholars such as Yu.F.Dyahtirenko, O.I.Drapikovsky, I.B.Ivanova, O.P.Kanash, O.O.Kucher, M.G.Lihogrud, Y.M.Mancevich, Yu.M.Paleha, B.A.Semenenko, D.І.Solyarchuk, A.Ya.Sohnich, M.O.Sokolov, M.G.Stupen, O.M.Telizhenko and others, which highlights important scientific and methodological approaches to the assessment of the land. However, many aspects of the problem under study remain controversial and require more in-depth research and study. [5]
Conventionally, they can be divided into three categories:
- Articles, which analyzes the current state of land evaluation;
- Articles containing methods to improve the normative monetary evaluation methods;
- Articles on research implementation mass appraisal in Ukraine.
To summarize we can say that many Ukrainian scientists in their work criticized the existing normative monetary evaluation methods, but only a few of them provide concrete examples of solutions of the problem. Almost all scientists agree on one thing, it is necessary to orient the existing technique on the property market, and use massive monetary value of land as a tool. Ukrainian scientific research in this area is a world review of the use of mass appraisal. The specific application tasks to implement the mass valuation models have been considered in the thesis of M.G. Krivobokov [6].
3.2 Analysis of foreign publications and research works
Currently, the cadastral valuation of land and property of Russian Federation are under development. The final completion of the introduction of mass appraisal and the introduction of real estate tax is scheduled for 2013. Mass appraisal system began to create in 1991 with the introduction of the regulatory assessment of land. Then, in 1997, it has been experimentally launched mass appraisal in the two cities. And since 1999 it began to carry on a national level [7].
Therefore, the majority of scientific articles of modern Russian scientists devoted to research new methods and models of the monetary valuation of land mass.
After analyzing recent work, there are three main ways in which they can be classified:
- General concepts of mass valuation of land;
- Study of the mass appraisal techniques;
- Automation of the mass appraisal.
At present, the question of the mass appraisal work in the Russian scientists such as S.V. Orlov, I.L. Tsukanov, Y.A. Tsypkin, A.V. Sevostianov, A.P. Romm, G.M. Sternik and others.
4. Description of the chosen method
In this work extraction method (separation) was selected as a method of determining the value of land. This method is used to estimate the built-up land.
In this method, the cost of land is removed from the sales price increase by subtracting the value of the contribution to the improvement is measured as their residual value. Residual value is the value of the land. Thus, the selling price (S) minus the cost of improvements (IV) is equal to the land value (LV):
In this case, the value of land for residential building, is defined as the difference between the market value of all residential units in the building and construction costs.
5. Stages of the research
To achieve the goal and objectives of the work was taking decision to create a model of the monetary valuation of land mass for the two areas of the city of Donetsk. As the basis of the mass appraisal model was selected extraction method, because it can be used to obtain high-quality results in an underdeveloped property market.
The input data for the model will be information of cost of building the houses, located in the regions and data offers sales apartments that are in these houses in these areas.
Determination of the proportion of the cost of land in the value of the property will be calculated as the difference between the cost of apartments in the house and the replacement cost of construction.
Thus, we find the average value of land within the homogeneous development. After that, we select a base value of land in the area as the minimum value, and then use the methods of statistical analysis to determine significant characteristics and their impact on the value of the land.
Conclusion
During the analysis of subject literature of Ukrainian and Russian authors we can draw the following conclusions:
1) The existing today in Ukraine technique of normative monetary value of land settlements outdated and needs modernization, namely the transition to a market data, and taking into account their impact on the formation of the cost of 1 sq. meters of land.
2) In view of the global experience, as an alternative to the normative monetary value of land can be called a massive monetary value, which is used for the same purpose as the standard. An excellent example is the experience of implementing the mass appraisal of the Russian Federation, where this system started to be used in the late 90's and today land valuation of largest and most developed cities in the country were made by this method.
3) The Russian scientists, based on international standards and publications carried out a number of different research methods and build various models of the mass appraisal. Many of them have been applied in the evaluation of cities such as Moscow, St. Petersburg, Nizhny Novgorod and others.
4) As a method of determining the value of the land has been chosen method of abstraction (separation), based on the data used by the real estate market for the purchase and sale of improvements or offer prices (demand).
References
- С.В. Орлов, И.Л. Цуканов, Ю.А. Цыпкин, Д.А. Цветков. Массовая оценка земель как фундамент градостроительства и управления недвижимостью.
- Ю.П. Губар. Кадастрова багатофакторна оцінка міських земель : Дис... канд. техн. наук: 05.24.04 / Національний ун-т "Львівська політехніка". — Л., 2004. — 165арк. : рис. — Бібліогр.: арк. 126-135.
- Д. Сацький. Масова оцінка землі – справедлива та ефективна база для розрахунку земельного податку.// Землевпорядний вісник – 2010. - №3, стр. 30-34
- Джозеф К. Эккерт. Организация оценки и налогообложения недвижимости. / Пер. с англ. – М.: РОО, 1997
- В.М. Кілочко, А.І. Пантелеймонов. Методичні підходи до вдосконалення нормативної грошової оцінки земель у ринкових умовах // Землеустрій і кадастр – 2012 -№2
- М.Г. Кривобоков. Mass valuation of urban land in Ukraine: from normative to a market-based approach - Doctoral thesis in Real Estate Planning, KHT , - Stockholm -2006.
- А.П. Ромм. Основные принципы оценки городских земель // Аудиторские ведомости, №2/1998., стр. 13-16