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Assignment Task
Subject Learning Outcomes
Outcome
1 Outline the nature of specialised property types and their use
2 Identify property type characteristics and their relationship to productivity, profitability and management
3 Describe the factors which cause depreciation, obsolescence and alternative use of special premises improvements
4 Analyse the ramifications of contamination and environmental issues on the operation and management of special premises
5 Apply a range of valuation techniques and data analysis pertinent to the various classes of special premises
6 Utilise basic principles to develop procedures for undertaking comprehensive valuations of any specialised property and preparation of industry standard “full speaking”narrative reports
Approach to Learning
Students are encouraged to actively engage with industry whether owner operators; business proprietors; agents (selling & managing); valuers and business brokers in securing data. Upon deciding an area to specialise in for assignment purposes, students are expected to extensively review the literature and if applicable the API standards associated with that topic.
Legislation changes every year for different sectors. No doubt the recently constituted Royal Commission into the Aged Care Quality and Safety will produce.
Assessment Details
Overview
The assignment can be undertaken as a full valuation report. Please note that the following questions should be closely read in conjunction with recommended Valuation Report Contents Due Diligence Guide which is located on vUWS (Assignment Resources sub-folder). Students are to select premises, which may be described as falling into the vUWS online definition of “special premises”for the purpose of carrying out the following task.
Valuation Report
1. The premises are to be described in terms of size, construction and layout-and present use. Additionally, students are to outline the status of the selected property in terms of town planning considerations. The zoning of the site is to be indicated, and a copy of the relevant land use tables attached. Students will indicate whether the special premises selected for this exercise enjoys an existing use right under the provisions of the Environmental Planning and Assessment Act, or whether the premises came into being by virtue of a planning consent under the Environmental Planning and Assessment Act or the Local Government Act. Further, why does the subject qualify as a special premises classification? What is the extent and type of business operation conducted? Comment upon the caliber‘ and standard of management performance if applicable?
2. Having regard to the current use of the premises (i.e. the basis of valuation must be“current market value subject to/for existing use”- as is); students are to put forward prime and supporting secondary methods of valuation, and must identify market data presently available to the valuer (e.g. sales, yields, rentals etc.).
3. Students will prepare a full-speaking narrative professional valuation report for the selected premises. Details of all valuation calculations, methodology, assumption, sales analysis is required. Professional standards must encompass instructions, valuation executive summary, market analysed evidence and annexures. Especially, students will identify the matters that must be conveyed to persons commissioning a valuation of the premises selected for this exercise. Observance and adherence to the APINZ Valuation and Property Standards will be strictly evaluated
Details
The traditional industry reporting format does not preclude scholarly discussion (where relevant) and proper referencing for this subject. For all intents and purposes i) to iii) above may be viewed as client instructions as the observant student will note that these issues should be addressed in any quality valuation report. It is left to the student to discern the most appropriate basis, purpose (insurance and on- completion valuations are excluded), interest and valuation methodologies for the chosen subject special premises. We recommend no vacant possessions but always prefer freehold going concerns subject to existing leases. Word limit is 2,500 words maximum excluding attachments, tables, figures/charts, plans, maps, photos, pictures, rental and sale transaction/yield analysis schedules, field notes, supporting valuation calculations and workings, revenue and expenditure statements, actual, projected and adjusted/annotated profit and loss analysis, figures, qualifications, disclaimers, acknowledgements, table of contents, executive summary and reference list. With reference to“specialised trading properties”commonly (but not exclusively) valued on a going concern basis via the capitalisation of net operating profits: it is best not to unduly over-rely on promises of property information such as profit and loss trading accounts or revenue and expenditure statements. Actually gather the information which may simply be adjusted ballpark data or suitably disguised figures to obviate providers’ commercial sensitivities. The revenue and expenditure statement is the key starting point if your selected property type falls into the domain of a going concern classification. If your data is circa 2019-20 that is okay for our purposes. Just relate to current market in terms of market (sales/rental) evidence. Older data is problematic. Comment on interim market changes (if any & do not be silent) to the 2022 Date of Valuation. Resist inflating figures as valuation ’process’ is paramount.
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