Define the Years Purchase and show how it is used in the
capitalization method of valuation.
How can the term multiplier be used instead of years purchase? What
advantages are derived from the use of this term?
The market value of an investment property is the value of all future
income and………… ?
Which of the following properties are investment properties?
- a motel
- a hotel
- a cottage
- an owner
occupied home unit
- an industrial
Discuss the following statement:
the increase in strata (unit) title, commercial and industrial
properties there is less need for the capitalization method of
What is meant by primary and secondary methods of valuation? Why is a
secondary method necessary?
Comment on the following values for a district shopping centre. What
conclusions may be drawn from the two valuations?
with the capitalization method:$5m.
with the summation method:$7m
value should be adopted?
Determine the initial yield of the following sale of a district
annual income: $600000
It is determined that the net annual income for the above property is
well below the market rental value. This would result in a ….. ..
in the capitalization rate
to an equivalent property enjoying market rents.
Would your answer to 9 be different if the above property was vacant?
The systems approach as used in this part uses the physical,
economic and legal environments to evaluate the subject investment
property. What other environments might be used that affect the value
of such property?
The expected return on investment for an industrial warehouse over
the next 5 years is 12% per annum including expected capital gains.
How would you advise a client who wishes to invest in the property?
What are the other factors should be considered?
Energy efficiency is the most important single criteria of the
worth of large investment properties today and the valuer's report
should basically be an analysis of energy efficiency.
the above quotation correct? Should the valuer become an expert in
energy efficiency of buildings?
As more and more tenants become aware that the cost of their lease
is a factor of energy efficiency, they are more likely to question
the landlord's expenditure and management on plant and equipment.
are tenants concerned about the energy efficiency of certain
buildings? How would this affect the value of such buildings?
Landlords are not particularly concerned about energy efficiency
because of the recoverables and profit on the sale of power."
this statement true? Discuss how it could affect the value` of
Discuss the problems that incentives (particularly "secret"
incentives) cause the valuer of commercial market rents.
Discuss the problems in the construction of a suitable rent review
clause that is fair for both the lessor and lessee of commercial
premises. What is meant by a plain English clause?
What do the words annual rent mean under the rule in
Woolworths case (1988) The Valuer, January 1989, p232.
was inflation taken into account in the
determination? Is this a correct approach?
Discuss the phrase "final and binding” in a typical rent
review clause. Under the rule in the Horwitz case (1990) The
Valuer, November 1990, p281 when can a wrong rental determination be
upset by the courts?
wasn't it upset in this case?
What did the Burns Philp case (1987) 8 NSWLR 642 decide on the
correct method for the determination of market rent in a commercial
lease rent review clause?
What was the reasoning in the Bestwood Pine case (1990) The
Valuer, February 1991, p361, that bound the parties to the valuer's
these the same as in the Horwitz case?
Under the rule in Bestwood Pine should the financial strength
of the tenant be taken into account when determining a new rent
under the rent review clause?
What is meant by the term; "error in the discretionary judgment
of the valuer"
J in Legal General Life (1985)1 NSWLR 31 at p336.
In the NMLAA case (1991) The Valuer, August 1991, p512, what
were the opposing arguments concerning the use of confidentiality
clauses in lease agreements?
was the case decided and why?
the same result be likely in your state or territory?
Compare the decision in the NMLAA case with Ropart's case
(1991) The Valuer August 1991, p515. Are they at odds or are the
facts sufficiently different that they should be distinguished?
In Holman's case (1992) The Valuer August 1992, p220, how
should the "current annual market rental" be determined?
it really just a question of construction?
How is the willing buyer willing seller theory applied in the
determination of current annual market rental value in Holman's
is it distinguished from the Barton Chambers case (1986) 6
What was the decision in Dickinson's case (1991) The Valuer,
November 1992, p305, concerning an arbitrator's subpoena of evidence
subject to a confidentiality clause?
the judgment apply to arbitration proceedings in your state or
What are the differences between a gross lease and net rent
are the advantages and disadvantages of each type?
does each affect the value of commercial buildings?
How have national standards affected the valuer's assessment of a
area of law affecting tenant comfort and safety have the standards