A Property Valuation Report Commerce Essay

A Property Valuation Report Commerce EssayIntroductionIn recent years, the real estate marketplace becomes a focal point. Property value may change by the influence of the government, social, economic and surroundingsal forces. Demographys distinguish shows Australian home monetary values to be little change magnitude in 2011, driven by the slow pace of construction approvals, strong immigration, and an economy that hasnt experienced a recession in nearly two decades. (Business day, 2011)These forces volition modify the real estate markets up or down. This task focuses on the seat superintendence and military rating and specific anyy discusses a valuation of Burwood Vic. First it describes the external components and internal inspection of the house. Then it analyses what components would affect the lieu value. After that, the market valuation approach is undertaken and quint recently comparable changes within the local argona be provided, with the valuation and details o f each house being discussed. There be slightly opinions and discuses shown by references, graphs, images and RPdata web range finding.Current state of the residential market1In recent years Melbourne real estate market is more active, with the house scathe gradually wage hike in the trend. And key fundamentals be in high demand, which is created by population growth in the city of Melbourne. There is a serious add up and demand imbalance in the Australian residential stead market. Melbourne has major problems in meeting demand for new lodging and is not building bountiful apartments and houses currently .Different regions in the Melbourne have incompatible footings. According to Residex, houses grew by 14.3% and units by 12.3% in 2010. And Melbourne is now the second highest priced median housing market in the vault of heaven behind Sydney. Besides, interest rate rise in 2010, which was influence by the Australian economy, grew well above its trend rate at 0.9% for 2009 . (Iron fish, 2010) This incredible result, on with unanimous employment figures and buoyant business and consumer confidence have all but guaranteed the return of interest rates to a normal level by the end of the year .( Iron fish,2010). On the other hand, the secondhand room trade in Melbourne is very active, with about 65% people in Melbourne renting the private house. The RP Date shows that rent houses price is increasing 35% in the last 3 years. This is why the more investors see the high return in the property and choose to invest in real estate.Local suburban marketThe Burwood housing market has been increasing between 2002 and 2010 with the median house price around $200,000. At present, the May 2010 median house price is at $250,000 while unit prices average $280,000 (Domain, 2010). Between May 2002 and 2010 the Burwood property market has increased annually on average by 12%, however with the rise of interest rates on mortgage repayments, according to the Real Estate engraft of Victoria, the suburban market is likely to ease as housing becomes less affordable (REIV, 2010). In terms of the local suburban market with reference to the housing market, the property price in Burwoods long term trend is increase for house and units. The median price for house in year 2010 is increasing, but the price for units is going down. (Domain, 2010)2 bloodline form RPData.com.auFactors affecting home valueThere are major factors affecting the housing value. To sum up, first is the urban employment opportunities. The second is the secondhand market is activated. The third one is the government policies. In this section we will examine particularly how market and government forces affect the houses value. The government force can have a great impact on property value. In the 2010, VIC government increased Built permit license, the shape of Home Starter allowance is grow 30 %.( RP Data, 2010). Government policies plan stimulates the economy and property market. Ec onomic forces mainly in the external economic factors are employment, wages level and occupancy rate. Related to the employment opportunities, higher income means high demand, this is an external factor to affect the house value. And Interest rates are a major component to a property market since high interest rates increase the added expense in borrowing money from banks. On the contrary, low interest tends to drive demand of the property result in an upward trend.In additional, KEY value influenceAccess to workplace, shopping centers and cultivation facilitiesTransport ServicesQuality of schools3Reputation of the areaResidential atmosphereSupply of landPrivate land use restrictions ( lecture notes, topic 3)About this house- touch house, a major influence is firstly, location. House prices most significant influence factor is the location, location can decided how good the most important factor is the traffic. Secondly, it is CBD. Business Centre is to determine the prices for ke y factor, located in the business centre will determine the house price growth fast. Lastly, its the environment. Including the ecological environment and human and culture environment, economic environment, any environmental conditions will improve property appreciation. Ecological environment is to observe without air and water pollution and so on, if inside the residential area have plenty of green space or garden, this area will fit for live in, and some improvements.Property inspectionThe physical characteristics of the Johnston property were examined as a result of a visual inspection on the 20th of January, 2011. The external components were first assessed, including boundary dimensions and improvement areas, direct characteristics. Details of the legal description and land, Land Channel report. And a description of the land characteristics, services and planning controls. Then, the inspection of the internal features of the property will be examining, analysis each room ap plication floors, walls, and condition of the room.External plan of the lands4The image below is a cadastral social occasion portraying, the propertys location on the street. The map from state government Victoria and google map.verbal description external FeaturesSite sizeEncompassing 828 square meters, the Johnston situate has two levels of the house. In general, the higher size the site attracts if it has higher utility.Site shape5The site width measures to be about 17 metres and the length about 40 metres. The sites dimensions also contribute towards the property are the biggest area utility.Site AccessThe Johnston state has two direct accesses to the propertys appeal. From the highway having one access point, the other point is on the right through the road. The site is easy and continence to get in.ZoningThe Johnston property is located in the Residential 2 Zone, and last year, the Victoria government zoned the areas of the distribution, from the city to Vermont south all c over the zone 1, ,that meaning that the site highest and best use in the residential development ,and develop the transport.TopographyIn this area, where the topography around the site, thither are intimately houses and several apartments. Due to the wide and height range of the zoning limitations, so the site used the residential house or the two-level units. At the Johnston site, the topography is used for the family housing. forthcoming UtilitiesThe Melbourne government makes the available utilities for the residential house people. Including services electricity, water, gas, high -speed internet, Drainage and sewerage, security. These services increase the residential development and contribution.EnvironmentThe local environment is covering a variety environmental factors, climate, temperature, humidity also influence the environment. Historically the weather is not affect the Johnston site area. The air quality seems to be good, there is no factory near the site, make green by planting trees, landscaping of residential area.Descriptions Internal inspection6Living comfort and appeal are exemplified in the propertys aesthetics and internal components. There are 3 bedrooms, a living room and 1 bathroom. Its an old brick house with a grown backyard.Brief property descriptionProperty layoutHouse is located the face south, the bet door leads into the entry corridor, in front of the corridor is the bedrooms, entry the hallway, beside the wall is the large move-in wardrobe, walk through the hallway, on the left is the bathroom and toilet, along the hallway is the laundry room, next the laundry is the kitchen, with the dining room with together in the middle of the house. In the dining room there is the other bedroom here, the entrance to the hallway, there are two bedrooms beside laundry two sides. The back garden is the through the hallway, clear the door near the laundry room. Big balconies have been seeing. Downstairs is the garden.Hot/Cold water service sHot/ cold service provide the win over way to the life. Cold and hot water are made available at each water pipe, at kitchen, bathroom, back garden, and laundry room. This provide a help to water condition, using the hose down a garden, its helpful and easy for living. And the cold water can drink at a time. Cold water was reused by and by chemical treatment, it is safe way.Air- conditioning /Heating systemsThere is the heating and air-conditioning installed in the house. Making a comfortable lifestyle. When temperature is below the specific point, the heating or air-conditioning will automatically start mode.7Room DescriptionsMain bedroomThe main bedroom is a medium-sized room with one large window that overlooks the small front garden and grows flowers and plants. Big wardrobe is inside the wall, double size bed, with wall-to-wall carpeting. Two sides to cover with yellow wallpaper, this room are location is backlight, although in the hot summer, it is tranquil feel comfortab le. And a floor lamp and bedstand in the two sides of bed. And has double window curtain.8KitchenLocated in the back of the house, the kitchen is with the living room together, the cupboards is made of the solid timber is large to put the whole things, there are two large cupboards the kitchen floor is a tiled floor, it is easy to clean. A large dinning-table and six chairs near the pantry. In addition, on the other side are the refrigerator, oven, and microwave oven. There is a kitchen ventilator in above the stove. The sink and tap are easy to use, there are hot and cold water from the two points, easy way. All things in kitchen have the good conditions.Bedroom * 3 new(prenominal) bedrooms includingCorner-Big Screen9-Entry Door-Carpet-Desk-floor lamp-double size bedWalls-Shelves-double window curtain-shutter-Windows-Wallpaper-wardrobelavatoryThe main bathroom is Skid-free surface-cabinet-bath tub10-shower bath Shutter ventilating fan Coat hanger Flush toiletLiving roomThe living room is located at the middle of the residence house, there are several large sofas in around the tea table, in front of the table is the TV and DVD table, the other side is the garden, open glass door can directly enter the back garden. In additional, can enter the carport.11DETAILED PROPEONRTY VALUATIONA property valuation was undertaken for Johnston Street, Burwood on the 20th of January 2011. In this section, the Burwood suburb will be examined to evaluate the current market price for the outlet property.Source From the myrpdata.com12Subject property20 Johnston Street Burwood VIC 3125Property sheath houseAttributes 3 bedrooms1 bathroom1 Toilet4 lockup Garagescut-rate sale Price $478,000Sale Date 27/09/03Local Govt Burwood blank space To CBD 18kmHighest price paid last 3 years $1,000,000Lowest price paid last 3 years $375,000Average land size houses 893 sqmmedian Sold Price $ 750,00013FeaturesBalcony, courtyard, garage, Wardrobe, kitchen, bathroom, living roomSituated within close proximity to75 tram home (200m), Deakin University (1.4km), Burwood shopping center (2.5km)On the market history for SalePUB.DateSale DetailAgency27/09/03Normal sale$300,000-$400,000Barry plant DOHERTY REAL ESTATE20/09/03Normal sale$300,000-$400,000Barry plant DOHERTY REAL ESTATE06/09/03Normal sale$300,000-$400,000Barry plant DOHERTY REAL ESTATE04/09/03Action-1200pm 27/09/03 On siteBarry plant DOHERTY REAL ESTATE BLACKBURNSource from Rpdata.com.au14Market comparisonsThe 5 properties below are a selection of sales chosen from the Australian property monitors database -RPdata. They are ranked by their transcendency to the subject property and reflect comparable characteristics. They are all located within Burwood.Burwood 312526 Brockhoff DRDescriptionDwelling typecast HouseBedrooms 4Bathroom 2Land area 448sqmCar accommodation 2Distance from subject property hot tram station 2.6kmSale Price $ 610,000Sale listed end 26/08/1015Burwood 31253 Conservatory DRDescriptionDwelling ty pe HouseBedrooms 4Bathroom 2Land area 425 sqmCar accommodation 2Distance from subject propertyNearest train station 2.4kmSale Price $560,000Sale listed 26/11/16Burwood 312541 Leopold stDescriptionDwelling type HouseBedrooms 4Bathroom 1Land area 741 sqmCar accommodation 1Distance from subject propertyNearest tram station 2 kmSale Price $ 778,000Sale listed 05/10/1017Burwood 31259 Pescott CLDescriptionDwelling type HouseBedrooms 4Bathroom 2Land area 502 sqmCar accommodation 2Distance from subject propertyNearest tram station 2.6 kmSale Price $ 646,980Sale list 08/01/1118Burwood 31255 Roadway CtDescriptionDwelling type HouseBedrooms 4Bathroom 2Land area 378sqmCar accommodation 2Distance from subject propertyNearest tram station 1.8 kmSale Price $ 850,000Sale go steady 25/07/1019House price estimateAddress 20 Johnston Street, Burwood Vic 3125Valuation date 2011/01Valuation $650,000Valuation range $600,000-680,000It is based on the comparability of the sales to the subject property and widens the scope of the valuation. Based on the comparable sales and an military rank of property markets, the Burwood property value will range between $600,000-$680,000. The valuation is based on current market circumstances so changing market conditions will alter the value of the property.Estimate compared to median priceThe current estimated market price for this property is $750,000 above the current median house price in Burwood.ConclusionTo analysis the above the property, estimate a propertys value is not easy to say increase or decrease, need to consider different forces, such as marketing situation, government policies, economic forces , and environmental change. Melbournes residential property will make another steady start in 2011 and traverse to do so in the long term. This assignment focuses on the property situated at 20 Johnston Street, Burwood Victoria where, both Australian and local markets were analyzed, the property was inspected and finally was valued. As al ways, look at the Comparisons property within the Burwood in Melbourne, real estate value is continuing to be good trend for property investment in the future.19