Property Valuation Report: Scope, Valuation Summary, Property Details, Town Planning, Market Value, Tenancy Information, and More

The provided data is a summary of a report on property valuation. It includes information on the scope and purpose, valuation executive summary, property address and description, registered owner, property limitations, town planning, last sale transactions, property importance, future changes, highest and best use, existing tenancies, date of valuation, financial summary, valuation metrics, property market value, introduction, bank's customer, property identification, assumptions, mortgage information, ownership details, statutory assessments, town planning, modifications, environmental issues, tenancy information, and more.

PROPERTY VALUATIONS
Table of Content

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SCOPE AND PURPOSE............................................................................................................................1
1. Valuation Executive summary...........................................................................................................2
Property Address...............................................................................................................................2
Property Description..........................................................................................................................2
Registered Owner..............................................................................................................................2
Property limitations...........................................................................................................................2
Purpose of report..............................................................................................................................2
Last sale transactions.........................................................................................................................3
Town planning...................................................................................................................................3
Property importance.........................................................................................................................3
Future changes to the property.........................................................................................................3
State highest and best use of this property.......................................................................................3
Freehold subject to existing tenancies..............................................................................................3
Date of valuation...............................................................................................................................3
Financial summary.............................................................................................................................3
Valuation metrics...............................................................................................................................4
Property market value.......................................................................................................................4
Details of a valuer..............................................................................................................................4
2. Introduction.......................................................................................................................................4
Bank’s Customer................................................................................................................................4
Identify property...............................................................................................................................4
Date...................................................................................................................................................4
Name of party....................................................................................................................................4
Assumptions......................................................................................................................................4
First mortgage security and its limitations.........................................................................................4
Market value as per IVSC...................................................................................................................4
Interest value.....................................................................................................................................4
Date of inspection.............................................................................................................................4
Reliant party......................................................................................................................................4
Property Street Address....................................................................................................................4
Compliance statements.....................................................................................................................4
Mortgage information.......................................................................................................................4
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Mortgage enquiries...........................................................................................................................4
Verifiable assumptions......................................................................................................................4
Assumptions requiring further consultancy.......................................................................................4
3. Property and Locality.........................................................................................................................4
Title plan............................................................................................................................................4
Survey plan........................................................................................................................................4
Disclaimer..........................................................................................................................................4
Site dimensions.................................................................................................................................5
Positive or negative property features..............................................................................................5
Environment constraints of this property..........................................................................................5
Explain property amenities................................................................................................................5
Site access.........................................................................................................................................5
Locality..............................................................................................................................................5
Location of property..........................................................................................................................5
Surrounding landed uses...................................................................................................................5
Features.............................................................................................................................................5
4. Ownership of property......................................................................................................................6
Title of property.................................................................................................................................6
Property description..........................................................................................................................6
Title details for valuation...................................................................................................................6
Attach terms and conditions of lease................................................................................................6
Registered owner..............................................................................................................................6
Existing mortgage of this property....................................................................................................6
Easements.........................................................................................................................................6
Covenants..........................................................................................................................................6
Caveats..............................................................................................................................................6
Rights if carriageway..........................................................................................................................6
Listing on registers.............................................................................................................................6
Reconcile current lease.....................................................................................................................6
5. Statutory Assessments......................................................................................................................6
Explain statutory regulations and dates of assessments...................................................................6
6. Town Planning...................................................................................................................................6
Zone and town planning....................................................................................................................6
Identify property benefits..................................................................................................................6
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Describe conservation zones.............................................................................................................6
Development codes...........................................................................................................................6
Floor space........................................................................................................................................6
Site coverage.....................................................................................................................................6
Building height limitations and constraints.......................................................................................6
Current development of property.....................................................................................................6
Review consent of higher authority...................................................................................................6
7. Modifications.....................................................................................................................................6
Changes in the construction..............................................................................................................6
Property specifications......................................................................................................................6
Repairing of property including its costs and time require................................................................6
Stating measure method to estimate the area of a building.............................................................6
Describe economic and functional wear and tear of property..........................................................6
Explain health and safety issues with the place.................................................................................6
Reviewing the copies of approval......................................................................................................6
Estimate the life of a building............................................................................................................7
8. Environmental Issues.........................................................................................................................7
Identify environmental issues related to the property......................................................................7
Give a summary of real estate contamination...................................................................................7
Risks to landscape of property..........................................................................................................7
Comment about National Australian Built Environment System rating and Building Energy
Efficiency Certificate..........................................................................................................................7
9. Tenancy information.........................................................................................................................7
Reconciliation of leases on the basis of its title.................................................................................7
Give a detailed summary of a lease in which a tenant occupying less than or more than 20%.........7
Overview of lease..............................................................................................................................7
Vacant area of the building...............................................................................................................7
Stating all the lease assumptions.......................................................................................................7
Summary of tenant schedule.............................................................................................................7
Describe Rent contract clauses..........................................................................................................7
Provide weighted average lease expiry profile..................................................................................7
10. Income Analysis...............................................................................................................................8
Cash flow analysis..............................................................................................................................8
Attach rent calculations.....................................................................................................................8
4

Justify lease in accordance with the market expectations.................................................................8
Compare current rent with the market rent......................................................................................8
Create budget and identify variances................................................................................................8
Comment on changes in rent contract renewal and consultation charges........................................8
Source of information........................................................................................................................8
Explain recoverable and non-recoverable expenditures...................................................................8
Provide lease income profile.............................................................................................................8
Rental information of the property...................................................................................................8
Discuss any rental arrears..................................................................................................................8
Regional and sub-regional valuations................................................................................................8
Analysis of MAT and gross occupancy ratios for tenant by comparing it with the industry..............8
Check the consistency of the lease....................................................................................................8
Describe trading history of property.................................................................................................8
State the trading performance of industry........................................................................................8
Trigger points affecting market growth.............................................................................................8
11. Valuation Rationale.........................................................................................................................8
Discounted cash flow method...........................................................................................................8
Give disclosure of the valuations calculations...................................................................................8
Provide sensitivity analysis................................................................................................................8
Explain and justify assumptions.........................................................................................................8
12. Goods and Services Tax..................................................................................................................8
Give Tax assessment rules.................................................................................................................8
13. Sales and rental Documents............................................................................................................9
Analyse sales and rental data............................................................................................................9
Comment on marketing and saleability of the property....................................................................9
State the difference in the market value and the price of the property............................................9
14. Market trends..................................................................................................................................9
Market value of property within a six year period............................................................................9
Determine selling period and give explanation.................................................................................9
Give Purchaser Profile.......................................................................................................................9
Market forces affecting property value............................................................................................9
15. Market analysis................................................................................................................................9
Market demand in locality.................................................................................................................9
Competition and trend......................................................................................................................9
5

Justify option among lease or sale.....................................................................................................9
Future circumstances affecting marketability of the property..........................................................9
Factors affecting value of property....................................................................................................9
Give overview of property market conditions...................................................................................9
Factors that will create an impact on property’s value.....................................................................9
16. Risk Assessment...............................................................................................................................9
Cash Flow...........................................................................................................................................9
Market and assets risks in next 3 to 5 years......................................................................................9
Examples of risks...............................................................................................................................9
REFERENCES........................................................................................................................................10
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TABLE OF FIGURES
Figure 1 42 Philip street Parramatta.........................................................................................2
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SCOPE AND PURPOSE
The current valuation report is about a commercial property used for offices in
Parramatta in NSW in Australia. The value of this property is identified by a valuer to help its
client in purchasing this property. This property located in the Parramatta in New south
whales estimates by valuer by applying its skills to facilitate the needs of all its users.
Qualified members and technical specialists of API member will value the property to know
its worth. The motive of this assignment is to consider all the recent or past development
takes places in this property to consider the same for evaluating its overall worth. In doing
this, the first mortgage security purpose requirements are also required in the meeting by an
individual in offering an option to a client to purchase this property on lease. Three different
options are available with the client such as lease or purchase of the property. This decision
of the client will simplify with the help of this report under which a researcher will explain
the sources of finances to fund its lease or direct purchasing of the property.
By taking the help of this report, all the local investors of NSW can change its
decision of investing or withdrawing its current interest from the real estate market. This
report will provide all the evident answers in resolving existing or future queries related to
the market structure, market demand, fluctuations in the market, interest rates, inflation and
so on.
To maintain a transparent relationship throughout the valuation of the property, it is
essential to create an authentic agreement which entails all the information relates to the lease
agreement. This agreement will cover the consent and the approval of the parties involved in
this process. This will consist of the client, valuer, and lender whose action is interconnected
with each other. By creating an agreement among all the concerned parties, the motive of a
researcher is to identify all kinds of risks associated with the property to alert the existing as
well as future clients.
This final report will comprise of several other separate reports attach with it to
support the overall discussion and analysis as these reports will comply all the standard
requirements to ensure the quality of the information includes in the report. This is important
as the final judgement of the valuation report may get affected which will deflate a client in
moving ahead with its final decision.
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1. VALUATION EXECUTIVE SUMMARY
Property Address
Figure 1 42 Philip street Parramatta
42 Phillip Street, Parramatta, NSW, 2150
Property Description
The lot number of this property is 12 and its plan no. is 790350 values by a valuer by
considering the whole land on this property by identifier 12/790350. This will be a 4-storey
office to building to be built on this vacant land in Parramatta.
Registered Owner
Mr Steve is a registered owner of this property who is living with its family in Sydney and
wants to give this place for lease or direct sale as per the requirement of a buyer.
Property limitations
This property needs to be demolished for setting an office as basically this is a house
consisting of rooms which a client can change according to its requirements.
Another constraint of this property is that a buyer cannot access grocery shops nearby to this
place as all these are far away from this place.
Purpose of report
The aim of this report is to identify the requirements of a buyer towards the property
they are buying by identifying the mortgage formalities before buying to know the risks
involved in it. Last sale transactions
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The last sale witness by the real estate market of NSW in February 2019 where a 7
story office purpose building sold for a consideration of $23000000 whose yield generating
% was 8.28%. The property which sold to a buyer is fully leasing to 5 of the tenants living in
this property with rental arrear in July 2018.
Town planning
The land is taken for a 4 storey office building in 42 Philip street Parramatta in NSW
falls under the land zone B4- mixed use as per the planning sections of the urban town
planning. Agriculture is strictly prohibited under this zone.
Property importance
While talking about the worth or significance of this property it can say that the
location of this property is good as this cover under B4 zone which is home occupations.
Future changes to the property
A 4 storey office building will get increases to other floors with the increasing
demand of the business which totally depends on its yearly growth.
State highest and best use of this property
Highest use of this property is to set up an office by employing to all the users and the
best use of this property is to give accommodations along with the job to earn rental income
from them.
Freehold subject to existing tenancies
No, this property does not have any interest in a tenant as this property is fully vacant
and available for sale.
Date of valuation
12th March is the date when the valuation will get start which will take time to turn into a
finishing stage.
Financial summary
Cost is the biggest concern for an indicate before purchasing a property on a lease as a
lease rental schedule is required in advance to know the future rental amounts.
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Valuation metrics
Property market value
Details of a valuer
2. INTRODUCTION
Bank’s Customer
Valuations guideline
Identify property
Date
Name of party
Assumptions
First mortgage security and its limitations
Market value as per IVSC
Interest value
Date of inspection
Reliant party
Property Street Address
Compliance statements
Mortgage information
Mortgage enquiries
Verifiable assumptions
Assumptions requiring further consultancy
3. PROPERTY AND LOCALITY
Property Identification
Title plan
Survey plan
Disclaimer
Land description and Services
Site dimensions
Positive or negative property features
Environment constraints of this property
4

Explain property amenities
Site access
Locality
Location of property
Surrounding landed uses
Features
4. OWNERSHIP OF PROPERTY
Title of property
Property description
Title details for valuation
Attach terms and conditions of lease
Registered owner
Existing mortgage of this property
Easements
Covenants
Caveats
Rights if carriageway
Listing on registers
Reconcile current lease
5. STATUTORY ASSESSMENTS
5

Explain statutory regulations and dates of assessments
6. TOWN PLANNING
Zone and town planning
Identify property benefits
Describe conservation zones
Development codes
Floor space
Site coverage
Building height limitations and constraints
Current development of property
Review consent of higher authority
7. MODIFICATIONS
Changes in the construction
Property specifications
Repairing of property including its costs and time require
Stating measure method to estimate the area of a building
Describe economic and functional wear and tear of property
Explain health and safety issues with the place
Reviewing the copies of approval
Estimate the life of a building
8. ENVIRONMENTAL ISSUES
6

Identify environmental issues related to the property
Give a summary of real estate contamination
Risks to landscape of property
Comment about National Australian Built Environment System rating and Building Energy
Efficiency Certificate.
9. TENANCY INFORMATION
Reconciliation of leases on the basis of its title
Give a detailed summary of a lease in which a tenant occupying less than or more than 20%
Overview of lease
Vacant area of the building
Stating all the lease assumptions
Summary of tenant schedule
Describe Rent contract clauses
Provide weighted average lease expiry profile
10. INCOME ANALYSIS
Cash flow analysis
Attach rent calculations
Justify lease in accordance with the market expectations
Compare current rent with the market rent
Create budget and identify variances
7

Comment on changes in rent contract renewal and consultation charges
Source of information
Explain recoverable and non-recoverable expenditures
Provide lease income profile
Rental information of the property
Discuss any rental arrears
Regional and sub-regional valuations
Analysis of MAT and gross occupancy ratios for tenant by comparing it with the industry
Check the consistency of the lease
Describe trading history of property
State the trading performance of industry
Trigger points affecting market growth
11. VALUATION RATIONALE
Discounted cash flow method
Give disclosure of the valuations calculations
Provide sensitivity analysis
Explain and justify assumptions
12. GOODS AND SERVICES TAX
Give Tax assessment rules
13. SALES AND RENTAL DOCUMENTS
8

Analyse sales and rental data
Comment on marketing and saleability of the property
State the difference in the market value and the price of the property
14. MARKET TRENDS
Market value of property within a six year period
Determine selling period and give explanation
Give Purchaser Profile
Market forces affecting property value
15. MARKET ANALYSIS
Market demand in locality
Competition and trend
Justify option among lease or sale
Future circumstances affecting marketability of the property
Factors affecting value of property
Give overview of property market conditions
Factors that will create an impact on property’s value
16. RISK ASSESSMENT
Cash Flow
Market and assets risks in next 3 to 5 years
Examples of risks
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REFERENCES
Books and journals
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