Intro to Property Valuation Report Assignment PDF

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Summary

Intro to Property Valuation Report Assignment

Western Sydney University Assignment.

Valuation Report

Intro to Property Valuation Report Assignment

Western Sydney University Assignment.

Valuation Report...

Description

12 Louise Place, Bonnyrigg NSW 2177 Domain, (2020).12 Louise place, Bonnyrigg NSW 2177 | Domain [online] Available at: https:// www.domain.com.au/12-louise-place-bonnyrigg-nsw-2177-2016091621 [Accessed on 30 Apr. 2020]

Date of Valuation 2nd May 2020

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TABLE OF CONTENTS

Executive Summary ……………………………………………………………………………………… 3 Introduction ………..……………………………………………………………………………………… 4 Location ..…………..……………………………………………………………………………………… 4 Title Search .………..……………………………………………………………………………………… 5 Town Planning ……………..……………………………………………………………………………… 5 Site Description ..…..……………………………………………………………………………………… 6 Improvements & Services ..…..…………………………………………………………………………… 6 Risk Analysis ..…..……………………………………………………………………………….………… 8 Valuation Approach .…………………………………………………………………………….………… 9 Valuation Rationale ..…………………………………………………………………………….………… 9 Valuation Conclusion ……….…………………………..……………………………………….………. 13 Appendix ..……….……………………………………………………………………………….………. 14 References ……….……………………………………………………………………………..…..……. 15

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EXECUTIVE SUMMARY PROPERTY DETAILS Address

12 Louise Place, Bonnyrigg NSW 2177

Zoning

Residential

Local Government

Fairfield City Council

Registered owners name

Ha Thu Thi Tran

Borrowers name

Maria Bobb

Last sales (within last 5 years)

Nil

Date of inspection

2 May 2020

Date of valuation

2 May 2020

Date of Report

3 May 2020

Instructing Party

Commonwealth Bank

Purpose of Valuation

Mortgage Security Purposes

Valuation Methodology

Direct Comparison Sale

Market Value

$783,127

Photo of the Property

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INTRODUCTION

We have been instructed by Commonwealth Bank to assess the current market value of the freehold 12 Louise Place, Bonnyrigg NSW 2177 for mortgage security purposes. Our valuation has been prepared with the Australian Property Institute (API) and the Property Institute of New Zealand (PINZ) Australia and New Zealand Valuation and Property Standards (2020).

LOCATION The property is located in an inner city suburb of Bonnyrigg, approximately 40km west of the Sydney CBD. It is located within a mixed-use area which surrounded by a range of residential dwellings and modern unit developments. The dwelling is within an area which is dominated by the Tarlington reserve located North East of the property. Bus services operate along both Edensor Road and Elizabeth Drive. There is also the T-Way bus service west of the property.

Amenities Bonnyrigg Plaza - 900m Bonnyrigg Public School - 0.3km a Bonnyrigg High School - 0.7km Our Lady of Mt Carmel Catholic Primary School Mount Pritchard - 0.8km (Google Maps, 2020)

(Google Maps, 2020)

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TITLE SEARCH The property is described as lot 11 in plan deposited 880187, being edition no 12 and folio 11/880187 this information was supplied by the property registry (Land Title Search NSW - QLD - SA - NT | Property Registry, 2020). A copy of the title search will be attached in the appendix as appendix 2 of the report.

TOWN PLANNING The responsible planning authority for the property is the Fairfield City Council. The property is encompassed within a General Residential Zone - R1 as per depicted in the following plan. The purpose of this residential zone classification is to “provide for the housing needs of the community, provide for a variety of housing types and densities, enable other land uses that provide facilities or services to meet the day to day needs of residents”. (NSW legislation, 2020) This property is currently occupied as a single residential dwelling which is considered to be a permissible use under the zoning. Home occupancy is permitted without consent. However, the following are only permitted with consent: Attached dwellings; Boarding houses; Centre-based child care facilities; Community facilities; Dwelling houses; Group home; Hostels; Multi dwelling housing; Neighbourhood shops; Oyster aquaculture; Places of public worship; Pond-based aquaculture; Residential flat buildings; Respite day care centres; Semidetached dwellings; Seniors housing; Shop top housing; Tank-based aquaculture. (NSW legislation, 2020)

Zone Map

(NSW Planning Portal, 2020)

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SITE DESCRIPTION The property has a total lot size of approximately 450m². The property is situated above Louise Place on a flat land. It comprises a rectangular shape. The Tarlington reserve located North East from the property. The property has no residential property on its north side where the reserve is.

IMPROVEMENT & SERVICES Dwelling Description The property comprises a rectangular shaped, flat level, residential land. The property is encompassed with a General Residential zoning and has a land area of approximately 450m². Accomodation The property is improved with a single storey residential dwelling, built in circa 1999. Accomodation includes 4 bedrooms, 2 bathrooms, kitchen with dining area, open plan living area, laundry room. PC Items Kitchen: Stone bench tops, wooden cupboards, island bench; En Suite: vanity & toilet; Bathroom: shower, bathtub, vanity & toilet. Fixtures & Features Ductless A/C in living area, recessed light fittings, vertical blinds, tiled floors, fitted wardrobes in all bedrooms.

Other Improvements In addition, the property includes attached double garage, paved driveway, rear pergola and outdoor shed. Materials made up in the external walls are timber frame and face brick veneer/ tile roof. (RP Data Professional, 2020)

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Photographs of Improvements

Front of Property

Kitchen

Dining Area

Backyard

Main Bathroom

Floorplan

(Real Estate, 2020)

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RISK ANALYSIS

PROPERTY RISK RATINGS

1

Location

X

Land

X

Environmental Issues

X

Improvements

X

2

3

*Risk Ratings: 1 Low, 2 Medium, 3 High

MARKETING RISK RATINGS

1

Reduced value in next 2 years

X

Market Volatility

X

Local Economy

X

Market Segment

X

2

3

*Risk Ratings: 1 Low, 2 Medium, 3 High

Additional information: •

Property is in close approximation to shopping centres and schools

•

Change in Median Price (5yrs) is 23.6% (RP Data Professional, 2020)

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VALUATION APPROACH

We are assessing the property value under the basis of market value. From our analysis, we have determined that the best approach is by direct comparison as we have utilised in this valuation. The valuation for this property is to compare the subject with sales of similar properties within the same locality, after making appropriate adjustments.

VALUATION RATIONALE Subject Property - 450m², 4 bedrooms, 2 bathrooms, 450m² lot listed for $829,000

Comparative 1 450m², 4 bedrooms, 2 bathrooms Sold for $800,000 Date of sale: 29 Apr 2020

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Comparative 2 668m², 4 bedrooms, 2 bathrooms Sold for $790,000 Date of sale: 02 Apr 2020

Comparative 3 668m², 4 bedrooms, 2 bathrooms Sold for $745,000 Date of sale: 21 Dec 2019

(Real Estate, 2020)

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Subject m²

Comparative 1

Comparative 2

Comparative 3

450

450

668

550

Bedrooms

4

4

4

4

Bathrooms

2

2

2

2

Garage

2

1

1

$800,000

$790,000

SOLD Days

$745,000

- 4 days

- 30 days

-120 days

+ $26000 built-in garage

- $75,746.28 m² + $26000 built-in garage

- $34,746 m² + $30000 built-in double garage

= $826,000

= $740,253.72

= $740,254

Calulations

Land

Direct Comparison

C2 - C3

Range $740,254 - $826,000

668m² - 550m² = 118m²

Midpoint $783,127

$816000 - $775,000 (adjusted) = $41,000 41000/118 = $347.46/m² Approx. average $768,835.91/450m² $1,708.52/m²

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SECONDARY VALUATION METHOD - SUMMATION

Land Value $650,000 assumptions based on sales of vacant land. Economic life of improvements 75 years House is constructed in 1999 Age of dwelling is 21 age Rawlinsons costs to rebuild (all measurements are an approx.) $1815/m² ($217,800) Dwelling 120m² Garage 33.6m²

795/m²

($26,712)

Verandah 7.6m²

650/m²

($4,940)

Other Ancillary Improvements

($20,000) $269,452

21/75 x $269,452 =

$75,447

Improvement Value

$194,005

Land Value

$650 000

Market Value

$844,005

Comparing Methods Range $783,127 - $844,005 Midpoint $813,566

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VALUATION CONCLUSION

In preparing our valuation assessment we took consideration both the physical features of the property together with the current market conditions. With preference to using the direct comparison approach, opposed to the summation method, it more accurately reflects current market conditions in the subject locality. We took into account the economic conditions at the time of valuation and have concluded to the opinion that as at 2 May 2020, the market value of 12 Louise Place, Bonnyrigg NSW 2177, assessed using direct comparative approach for mortgage security purposes is as follows:

Direct Comparison Value

$783,127

Summation Value

$844,005

Adopted Market Value

$783,127

VALUATION CERTIFICATE Current Market Value of 12 Louise Place, Bonnyrigg NSW 2177, as at 2 May 2020, to be:

$783,127 (Seven Hundred Eighty-Three Thousand One Hundred And Twenty Seven Dollars)

Lina Nguyen Certified Practising Valuer Registration No. 3311 Date 02 May 2020

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APPENDIX

Subject property Locality (Real Estate, 2020)

Domain, (2020)

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REFERENCES Domain, (2020). 12 Louise Place, Bonnyrigg NSW 2177 | Domain [online] Available at: https:// www.domain.com.au/12-louise-place-bonnyrigg-nsw-2177-2016091621 [Accessed on 27 Apr. 2020] Google Maps, (2020). Google Maps [online] Available at: https://www.google.com/maps/place/ 12+Louise+Pl,+Bonnyrigg+NSW+2177/@-33.8884607,150.8879948,17z/data=!4m5!3m4! 1s0x6b12969d98538b67:0x15b4c5cebc2a0ebe!8m2!3d-33.8887198!4d150.8923547!5m1!1e4 [Accessed on 27 Apr. 2020] NSW legislation, (2020). NSW Legislation [online] Available at: https://www.legislation.nsw.gov.au/#/ view/EPI/2006/155a/partlanduseta [Accessed on 28 Apr. 2020] NSW Planning Portal, (2020). NSW Planning Portable [online] Available at: https:// www.planningportal.nsw.gov.au/spatialviewer/#/find-a-property/address [Accessed on 28 Apr. 2020] Real Estate, (2020). 12 Louise Place, Bonnyrigg NSW 2177 [online] Available at: https:// www.realestate.com.au/property-house-nsw-bonnyrigg-133025886 [Accessed 30 Apr. 2020] Real Estate, (2020). Real Estate [online] Available at: https://www.realestate.com.au [Accessed 30 Apr. 2020] RP Data Professional, (2020). 12 Louise Place, Bonnyrigg NSW 2177 [online] Available at: https:// rpp.rpdata.com/rpp/property/detail.html? showNavBtns=false&propertyId=1536459&selection=0&has_deed7_properties=false&counter=1&a ppNames=rpp%2Crpnz&sprAppNames=rpp&oneprAppNames=rpp&hideDirectMarketingTooltip=fal se&searchWindowId=177113374&advancedSearch=false&depreciationCalculatorUrl=https%3A%2F %2Fwww.washingtonbrown.com.au%2Fdepreciation%2Fcalculator%2F%3Futm_source%3Drpdata% 26utm_medium%3Dbutton%26utm_campaign%3Dcalculatorfeature&displayMessage=0&sort=ADDRESS&limit=20&offset=1&q=12+Louise+Place+Bonnyrigg+N SW+2177&searchId=0&qt=ADDRESS¤tView=PROPERTY&showDisclaimer=false&showUpdat eData=true&minSaleDate=04+Nov+2019&maxSaleDate=02+May+2020&minListingDate=02+Feb+2 020&maxListingDate=02+May+2020&minAuctionDate=04+Nov+2019&maxAuctionDate=02+May+2 020&radiusIntermediate=false&isCBRE=true&isVicException=false&marketingFullLimit=10000&adva nceSearchEnable=true&printableOwnerDetails=true&mainMenu=SEARCH [Accessed on 28 Apr. 2020]

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