1.
Calculate
the value of a 99 years leasehold interest in a corner of a double storey
terrace house located in USJ 2, Subang Jaya. The 18-year building has a
built-up area of 2,115 square feet and land area of 2,080 square feet. The
building had been renovated 5 years ago.
The
best comparable data available was recorded in March 2017 has the following
details
|
Type of
property
|
:
|
An intermediate
terrace house located within the same row of the subject property
|
|
Built-Up Area
|
:
|
1,320 square
feet – MFA
200 square feet
- AFA
|
|
Land Area
|
:
|
1,300 square
feet
|
|
Building Age
|
:
|
18 years
|
|
Transacted
Price
|
:
|
RM530,000
|
|
Transaction
Date
|
:
|
20 March 2017
|
|
Tenure
|
:
|
99 years
leasehold interest
|
|
Remarks
|
:
|
Standard design
and No renovation. The building is fairly maintain
|
Further
investigation indicated the costs of building with standard design is RM95 per
square foot. The depreciation of building is estimated at 20%. Analyse
the comparable property to determine the land value.
b. Using
contractor’s method, value the subject property. Adopt the land value
calculated in (a) and make necessary adjustment.
2.
In 2007, a freehold 1½ storey terrace
factory in Taman Kantan Permai is let on internal repairing term at RM12,000
per month for 25 years. The market rental of similar properties is RM15,000 per
month. All Risk Yield for the properties is at 8%.
From market
analysis the costs of meeting the various liabilities are indicated as
follows:-
i. Repairs @ 1.5% of the market rent
ii. Insurance @1% of the market
rent
iii. Property Taxes @4.5% of the market
rent
iv. Maintenance fee @ 3% of the market
rent
v. Management fee @ 10% of
passing rent.
a.
Value
the freehold interest of the property.
b.
Value
the leasehold interest of the property.
