Assessment Task 1
All of the above
3 properties of similar standard or condition, sold within a 5-kilometre radius in the previous six months.
All of the above
All of the above
All of the above
The rights held by one person to make use of the land of another
All of the above
Independent valuation refers to an authorised estimation of the property’s value. This includes the estimation of the factors which influence the value of the property. It is inclusive of outer and inner assessment of property (Tzioumis, 2016). Valuations are done when a perfect value is required. The main reason for doing this contains settlement of the property, in order to acquire money from lending organisations or value establishment of a deceased property.
On the other hand a property appraisal is an approximation of price, generally provided by real estate agents. With the help of agent’s knowledge, estimated price of the particular property is obtained. However, in appraisals there is an inborn bias, it is because they are generally asked by potential vendors, and ultimately higher values are recommended.
Valuers are the one who provides a proper and accurate valuation of the property to the vendors while the agents are the one who is assisting people in order to get right property at the right value. The real estate agents major purpose is to offer people best property and land according to their requirement. They also fix meetings among buyer and sellers so as to make faster transactions (Millington, 2013). Whereas, the property valuers provide people with the accurate and true value of the properties. The entire work is done with proper diligence and care. Property valuers are precisely offering the best ideas on the prices. It is their responsibility to provide the accurate sum of money that they will obtain or give during selling or buying of property.
Buying listings are also known as exclusive listings. A real estate transaction in which a particular a real estate agent gets up to achieve commission while selling a property within a specified period of time. They assist homeowners to sell out their property; they negotiate to provide the client the best price and terms for their property (Blackledge, 2016). The major reason of exclusive dealing is that it encourages the agent to quickly sell the property at best and maximum price potential. However, in case that the landlord agreed and signed the contract of exclusive listing agreement with an agent and also puts out ads regarding property, and if the buyer searched the property from the ad, then the real estate agent will also earn a commission.
Market value is the current estimation of price for a property which is saleable in the market. It can also be referred as a possible price of property or asset.
Assessment Task 2
Insurance value is the highest amount of money that an insurance company pays for the loss of an insured asset.
Statutory value is an element of valuation process which relates to assessment as managed by legislation valuations for purposes of tax purposes for necessary acquisitions.
Special value: In an aspect of valuing or estimating an industry or its assets, the special value helps in capturing the set of features that will convert the assets of business more valuable to a particular investor.
The four forces which influence property values are described as below:
Social forces: size of the population, example, expansion and decline, change in domestic and family size, education participation, social and leisure activities, age and gender arrangement of the population.
Economic forces: Rate of employment and demands, commercial trends, rates of interest, the level of income, commerce, natural resources and disposable income, mortgage repayments and loans.
Political forces: political forces are inclusive of government rules and regulations considering local zoning and overlay, planning policies and rules of the city, building allowances and regulations, home loans policies and regulation of government.
Physical forces: Physical forces are created by humans or are occurred naturally. They are inclusive of infrastructure, drought or fire risks, natural resources, conditions of environment like weather or fertility of soil, landscape and vegetation.
List of 10 physical factors which indicates the value of the property:
- Planned development sites
- Zoning restrictions
- Land character
- Type of real estate
- Available services
- Type of buyers attracted to that particular year
If an agent faces doubts regarding inspection, property, or any other related aspects the, the agent can take a recommendation from the specialists from the associated area. For example, an architect or a value can give a recommendation to the agent to deal with problems in order to make an efficient decision by taking expert advice (Warren-Myers & Warren-Myers, 2016). Excluding trained, generally, agents have not experienced valuer, structural engineers, and planners and must avoid from recommending clients in these fields without seeking specialist advice. Therefore, if any agent suffers from doubts or problems regarding property, then they can directly take an immediate advice from the experts and specialists if those fields.
Under an appraisal assignment, for instance, solving the problem needs the appraiser to determine the following aspects:
- Client and proposed users;
- Address and possession information of the property
- Details of lands like size and condition of soil where necessary
- Details of tenancy were Such as rental information
- Market factors influencing the outcomes of the property
- Proposed utilisation of the judgment and conclusion of appraiser
- Nature and meaning of values
- Proper date of the judgment and conclusion of appraiser
- Assignment’s subject and its appropriate characteristics
- Assignment terms and conditions
Property appraisals regarding properties for sale:
- Assist a vendor in order to determine probable improvements that will result in increasing sale process
- Giving guidance to the decision of vendor on the sale price to be placed on the market (Tzioumis, 2016).
- Give the vendor up to date information about the price and probable price of the reserve, if selling it by public sale.
Property appraisals regarding lease:
- Determine improvements in order to increase the process of lease
- Give the owner proper information to help in improving the worth of property
- Provide a possible owner information which will assist in identifying the rental value.
Appointments are fixed by agents with their clients to present their conclusion. Punctually sending the report in person to get understood is far a better way rather than posting the report directly to the client (Baum & Crosby, 2014). There is a need for creating a proper definite plan and time to present their appraisals in person to assist and to give assurance to the clients to explain their reports. By considering this way the problems regarding appraisals or any query can be easily solved also the appraisals listings and figured can also be explained.
A property management system can achieve great success by maintaining accurate and comprehensive records of property. Records are the storehouse for accumulating the vital identification aspects and following daily activities of equipment and contain material by which Stanford is responsible (Yinger, Bloom & Boersch-Supan, 2016). Information included in the records is the base for audit, depreciation, inventory and reporting the asset. The property record shows the nature and retirement profits and offers a historical image of the property from the cradle to the grave. Accurate valuations and appraisals assist agents to accurately and carefully identify the analyse the sales in the market and rental facts.
There are several records than an association must maintain as a proper conduct and administration.
- Appraisal of property
- Rental value and outcome
- Recording and sales data
- Properties sold
- Rates of rental vacancies
- Updated record of every member, inclusive of their selected contact information
- Owners according to the rule of association, consisting members of committee, trustees and authorised ones to make use of common seal (Almy, 2014).
- Any of the disclosure of interest prepared by the committee must be recorded in the particular period of time.
Electronic storage enhance the convenience of property value while implementing a system for the storage of EMR. In this, providers may get initial costs, but after that, the costs will reduce considerably. On the other side, paper records require more of the workforce to maintain the files and documents. Paper records need large warehouse to get stored; they need large space as well as large workers (Crosby and Henneberry, 2016). Whereas, EMR needs security and private clouds to get stored and do not need much space and man power. Paper records are sometimes hard to understand and lack space to store essential information. On the other hand, EMR is written in a standardised font and language that doesn’t create confusion.
Outlining the options for purchase and rental of a suitable property in Melbourne
This house has single storey original cedar, along with 2 bedrooms accompanied by study home sits on a block of 640m2 of land in a stunning, silent and low traffic street of Bonbeach. This house is situated in a prime location with a distance of just a short walk to the river and beach, local shops, public transport, great schools and encircled by prodigious biking and walking tracks and grounds for sporting.
Proposed residence is minutes away from Melbourne University, RMIT, CBD and Victoria Market. It has glorious Apartment on level 44 having city and water views. It comprises 3 capacious bedrooms along with the Entertainment terrace. Further, it is fully furnished with Best quality appliances and furniture.
Both the options satisfy the perspective of the client as it provides sufficient space for residence, close to schools and local market and supported by good public facilities. However, this aspect is not in terms of financial results. As for the purchase, the client will be required to pay a huge amount and for monthly rent payment is required to be done with no benefit at the end.
For purchase option payment details are as follows:
Interest rate (p.a.)
For rental option payment details are as follows:
Price $1300 per week and Bond amount $6500 By considering both the options and rental charges, the option of purchase is better as interest charges will be comparatively lower than rent charges. Further, with the payment of the principal amount, the client can reduce the obligation, and against of it, they will be able to attain ownership of the property.
Other relevant details regarding market
The option of purchase is also suitable because the house is located in a prime area which is near to all facilities. Further, the property value will be continuously increasing through which capital benefit can be attained by the client due to increasing demand of property.
Information kit for Bankstown
The purpose of the present report is to provide analysis to a potential investor who is willing to make an investment in proposed state to earn viable returns. The analysis will cover all viable points concerned with the investment decisions.
In south western Sydney, banks town is a suburban area in the country of New South Wales, Australia. It conquers the distance of 20 kilometres west of central business of Sydney area. It is situated in the area of local government of Canterbury-Banks town committee; earlier it was the administrate point of the City of Banks town before 2016.
Types of properties
Bankstown is having commercial as well as residential property for sale, rent and lease as per the requirement of clients.
Analysis of demand
In accordance with the anticipation made by experts of the local real estate, it is a fifth successive year having strong demand and severe undersupply due to which skyrocket property prices can be noticed across the region.
Median price in Bankstown
The median sales price for units in Bankstown, NSW in the last year was $515,000 based on 388 home sales (Blackledge, 2016). Compared to the same period five years ago, the median unit sales price for units increased 60.7% which equates to a compound annual growth rate of 10.0%.
Rental yield in Bankstown
The rental yield for units in Bankstown, NSW was 4.3% based on 925 property rentals and 388 property sales over the preceding 12 months.
By considering market data, it can be said that capital investment in Bankstown is beneficial as it provides significant uplift to the invested amount due to a continuous increase in property prices (Millington, 2013). Further, individual seeking for rental premises can approach Bankstown as it is perfect time due to continuous reducing rental charges.
Examples of property
Property options in Bankstown provide apartments and units with all expected amenities with a great view. Few example of a property is as follows:
Almy, R. (2014). Valuation and Assessment of Immovable Property. OECD Working Papers on Fiscal Federalism, (19), 0_1.
Baum, A. E., & Crosby, N. (2014). Property investment appraisal. John Wiley & Sons.
Blackledge, M. (2016). Introducing property valuation. Taylor & Francis.
Crosby, N. and Henneberry, J., (2016). Financialisation, the valuation of investment property and the urban built environment in the UK. Urban Studies, 53(7), pp.1424-1441.
Millington, A. (2013). An introduction to property valuation. Taylor & Francis.
Poon, J., & Brownlow, M. (2014). Competency expectations for property professionals in Australia. Journal of Property Investment & Finance, 32(3), 256-281.
Tzioumis, K. (2016). Appraisers and valuation bias: An empirical analysis. Real Estate Economics.
Warren-Myers, G., & Warren-Myers, G. (2016). Sustainability evolution in the Australian property market: Examining valuers’ comprehension, knowledge and value. Journal of Property Investment & Finance, 34(6), 578-601.
Yinger, J., Bloom, H. S., & Boersch-Supan, A. (2016). Property taxes and house values: The theory and estimation of intrajurisdictional property tax capitalization. Elsevier.
Bankstown Investment property data for all units, (2017). [Online]. Available through < https://www.realestate.com.au/invest/unit-in-bankstown,+nsw+2200>. [Accessed on 20th July 2017].
Investment Property Bankstown, NSW, 2200, (2017). [Online]. Available through <
https://www.realestateinvestar.com.au/Property/bankstown >. [Accessed on 20th July 2017].
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