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27 Aug 2021

QUESTION 1

1. A term and reversion scenario is one which:

The freehold property is let at full market rent

The freehold property is subject to an existing lease at a rent other than the current full market rent

The freehold property is subject to annual renewal lease

 

QUESTION 2

1. Your house is worth $750,000 today. Past records show that price increases at an average annual rate of 8%.

What will be the value of your house after 10 years?

$1,836,259, Say, $1.84 million

$1,542,888, say, $1.54 million

$1,782,350, say, $1.78 million

$1,619,193, say, $1.62 million

 

QUESTION 3

1. Which of the following is the Years Purchase formula for a time limited income valuation?

i/[(1+i)n – 1]

[1 – (1/(1+i)n )]/i

i/[1 – (1/(1+i)-n)]

1/(1+i)n

 

QUESTION 4

1. A property valuation is:

An exact price determination of a property

An estimate of the market value of a property

The mortgage value of a property

A guaranteed price of a property

 

QUESTION 5

1. Market value is assessed on the basis of:

The existing use value of the property

The value of the property on the transaction date

The amount that a bank will lend to a borrower

The highest and best value of the property

 

QUESTION 6

1. For the valuation of a freehold property, you have gathered the following information.

Gross rental $95/m²

Outgoings $20/m²

Capitalisation rate 8%

Area of the property 2000m²

What is its market value?

$1.665 million

$2.875 million

$1.875 million

$1.345 million

 

QUESTION 7

1. After analysing the market evidence, the market value of the subject property equals

to the average value all sales evidence.

True

False

1 points

QUESTION 8

1. For an ordinary valuation, the date of valuation is:

The date of inspection of the property

The commencement date of the financial year

The date specified in a legislation

The date of receiving client’s instruction

 

QUESTION 9

1. Valuation of industrial properties is based on:

$/m² net lettable area (NLA)

$/m² gross building area (GBA)

$/m² usable area

QUESTION 10

1. Analyse the following property information:

Sale price $200,000

Land value $120,000

Replacment cost (new) $145,000

Age of property 12 years

What is the annual percent depreciation of the property?

3.74%

3.83%

4.25%

2.78%

 

QUESTION 11

1. Which of the following is not an office grading in Australia?

Grade D

Grade B

Premium

Grade E

Grade A

Grade C

 

QUESTION 12

1. Which of the following is not a consideration for the choice of valuation method?

The interest to be valued

The date of valuation

The purpose of the valuation

Availability of market evidence

 

QUESTION 13

1. Your client is entitled to take over a freehold property after 5 years. The full market

rent of the property is estimated to be $80,000 net and yield of similar property is

8%. Opportunity cost rate is 5%

What is the value of the interest?

$783,526, say, $784,000

$754,835, say, $755,000

$942,870, say, $943,000

$825,573, say, $826,000

 

QUESTION 14

1. A motel with the following average annual figures in the accounts was recently sold for

$2.6 million.

Gross earning $2,250,000

Wages, etc. 400,000

Food, drinks, etc. 600,000

Advertising, etc. 250,000

Electricity, gas, phone, etc. 150,000

Insurance, repairs, etc. 100,000

Tenant's share 350,000

What is the capitalisation rate of this property?

13.36%

15.38%

14.45%

12.38%