assignement 2 800717795

MMP111

Assignment 2

Property Valuation Report

CORRY GEORGE CINCOTTA5-15-2015

Executive summaryAfter extensive analysis the following information has been concluded.

It is recommended the subject property is suitable security for advancement of mortgage funds. This is subject to conditions and researched material contained in this report.

This report was conducted in regards to the land and improvements located at

24 Maple Street, Bayswater, Victoria

For the purpose of occupancy by the purchaser John Smith. The previous sales data was unavailable.

The method used to value the subject property were the Comparative analysis approach. Using three comparative sold properties sold within the previous twelve months. Market value definition: Australian Property Institute (API) national definition.

The estimated market value as of 15 May 2015, subject to existing market conditions, inclusive of GST is $598,559

Five Hundred and Ninety-Eight Thousand, Five Hundred and Fifty-Nine Dollars ($598,559)

It is recommended that the subject property is suitable for purchase as a rental investment by the purchaser. Subject to the conditions outlined in this report.

The analysis process included title and land search, planning and overlay investigation, assessment of internal and external features, local area research and comparable property assessments. Additional documents including pictures and maps of property locations are supplied on documents appendices.

The market value assessment is based on information gathered in the comparative analysis process. Based on family home sold with in Bayswater in the past twelve months. Right to review: should there be unforseen events affecting the market.

Corry Cincotta: 80717795

1 Contents2 Introduction...................................................................................................................................3

2.1 Search process.......................................................................................................................3

3 Subject Property............................................................................................................................4

3.1.1 Parcel details.................................................................................................................4

3.1.2 Planning Zone Summary...............................................................................................4

3.1.3 Internal Features...........................................................................................................4

3.1.4 External Features..........................................................................................................4

3.1.5 Location / External influences.......................................................................................4

4 Comparable Sold Properties..........................................................................................................5

4.1 Sale A.....................................................................................................................................5

4.1.1 Sale Details / Features..................................................................................................5

4.1.2 Parcel details.................................................................................................................5

4.1.3 Planning Zone Summary...............................................................................................5

4.1.4 Selection........................................................................................................................5



4.1.7 Valuation.......................................................................................................................6

4.2 Sale B.....................................................................................................................................6

4.2.1 Sale Details / Features..................................................................................................6

4.2.2 Parcel Details.................................................................................................................6

4.2.3 Selection........................................................................................................................6



4.2.6 Location / External Influences.......................................................................................7

4.2.7 Valuation.......................................................................................................................7

4.3 Sale C.....................................................................................................................................7

4.3.1 Sale Details....................................................................................................................7

4.3.2 Parcel Details.................................................................................................................7

4.3.3 Selection........................................................................................................................7



4.3.6 Location / External Influences.......................................................................................8

4.3.7 Valuation.......................................................................................................................8

5 Valuation.......................................................................................................................................8


6 Appendices....................................................................................................................................9

7 Refferences..................................................................................................................................15


2 IntroductionThe report has been prepared as a bank valuation to ensure property is suitable advancement of mortgage funds. To meet this requirement a comparative analysis was undertaken using previously sold properties with similar characteristics sold in the past twelve months.

It is recommended the subject property is suitable security for advancement of mortgage funds. This is subject to conditions and researched material analysed.

The following report includes parcel details, planning zone summaries, internal features, external features, location analysis, adjusted valuations for each comparable sale and the estimated market value of the subject property.

Direct features comparison table, direct sales comparison with adjustments table, street view photographs and area maps are available in the appendices.

2.1 Search processThe primary search was conducted online using Realestste.com.au. Ten properties were shortlisted; site inspections were conducted on short listed properties; three comparable properties were selected. The most important criteria taken into consideration were lot size, amount of bedroom, location desirability, and condition of improvements.

Limitations were the low volume of house recently sold on large blocks with on two bedrooms. To conduct valuation two comparable properties with a superior number of bedrooms were selected. Adjustments were made in valuation process.


3 Subject Property

24 Maple Street, Bayswater, Victoria

3.1.1Parcel detailsLot/Plan: 14 LP18979 Standard Parcel Identifier: 14/LP18979Local Council: Knox Council Property Number: 110281Lot Size: 980m2 Bedrooms: 2Listed Sale Price $550,000 plusBathrooms: 1 Double Lock up Garage

3.1.2Planning Zone SummaryPlanning zone: General residential zone (R3Z)

Schedule to the general residential zone – schedule 2

Planning overlay: Vegetation protection overlay (VPO)

Vegetation protection overlay – schedule (VPO3)

3.1.3 Internal FeaturesThe dwellings internal features include a flowing floor plan with two bedrooms, bathroom with shower over bath, kitchen with gas stove/oven and electric range hood, wall to wall carpeting throughout the lounge meals are and the two bedrooms, interior walls are hard plaster and painted, ceilings hard plaster and a split system cooling system in the lounge.

There are visible signs of functional and physical obsolescence throughout the dwelling which are outlined as follows. The kitchen and bathroom are out dated with original fixture and fittings still being used. Functional and physical obsolescence is also evident thorough out the remainder of the dwelling with worn carpeting and a dated decorating scheme. It is clearly evident the property has not been recently updated.

3.1.4 External FeaturesThe dwellings exterior is painted weather board, with ceramic glazed tiled roofing, galvanised steel guttering, chimney are gas heater, private backyard, rear covered veranda on a large residential block of 980m2. Additional improvements include a double lock up garage

The dwelling structure shows signs of physical obsolescence with peeling paint on the exterior weatherboards, rusted gutting and cracked roof tiles.

3.1.5Location / External influencesThe location has ease of access to main roads, shopping, local schools, medical centres and public transportation. There is good access to the site, the local area is desirable the site is showing no signs of economic obsolescence.


4 Comparable Sold PropertiesThree comparison properties were selected based on land size, location and similarities to the subject property findings are as follows.

4.1 Sale A105 Stud Road, Bayswater, Victoria

4.1.1 Sale Details / FeaturesSale price: $481,000 Sale date: 10/03/2015

Lot size: 742m2 Two bedroom Double lock up garage One bathroom Lounge room Dining room Self- Contain bungalow

4.1.2 Parcel detailsLot / Plan: Lot 147 LP54284 SPI (Standard Parcel Identifier): 147\LP54284

Local council: KNOX Council Property Number: 112602

4.1.3Planning Zone SummaryPlanning Zone Overlay: General Residential Zone (R3Z)

Planning Overlay: None

4.1.4SelectionSelection is based on location, lot size and condition of the improvements. Sale A has similar obsolescent improvements, lot size and location are basis for section.

4.1.5 Internal FeaturesThe floor plan has been alter with the third bedroom being converted into a dining room at the front of the dwelling. The current floor plan includes two bedrooms, lounge, dining, meals area, kitchen laundry, bathroom and water closet.

Internal features include electric stove/cooktop, separate shower and bath, wall to wall carpeting throughout the two bedrooms, lounge and dining, vinyl flooring in kitchen, laundry and bathroom, walls are hard plaster recently painted, ceilings are hard plaster.

There is functional obsolescence with the impractical layout of the property, the dated kitchen and bathroom. Physical obsolescence is minimal as flooring, walls, ceiling are in a good condition.

4.1.6External FeaturesThe dwellings exterior is painted brick veneer, cement tiled roofing, galvanised steel guttering, chimney for gas heater, timber window frames. At the rear of the property there is a double lock-up garage, self-contained bungalow, outdoor entertaining are and a rear deck.

The exterior has recently been painted, there are still signs of physical obsolesce, with timber window frames showing some rotting, cement tiles are weather some with visible cracking. The


bungalow and garage are showing functional obsolescence as they are both of low standard construction.

4.1.7ValuationComparison sale properties were valued using adjustments to sale price based on sq.m, bedrooms, location desirability, condition of improvements and capital gains.

Adjusted sale price for Sale A

Six Hundred Thousand One-Hundred and Eighty-Three Dollars ($600,183)

Adjustments were made as follows; similar amount of bedrooms no adjustment; inferior land size $148,750 increase; Superior location $30,000 decrease; capital gains adjustment$433.

4.2 Sale B4 Wattle Road, Bayswater, Victoria

4.2.1Sale Details / FeaturesSale Price: $421,000 Sale date: 29/12/2014

Lot Size: 865m2 Three bedrooms

4.2.2Parcel DetailsLot / Plan: Lot 2 LP57440 SPI Standard Parcel Identifier): 2/LP57440

Local council: Knox Council property number: 213065

Planning Zone Summary

Planning zone: Neighbourhood residential zone – Schedule 3 (NRZ3)

Schedule to the neighbourhood residential zone – Schedule 3

Planning overlay: Significant landscape overlay (SLO)

4.2.3SelectionSelection based on similar lot size, state of improvement and the property’s exterior and the location of Bayswater.

4.2.4 Internal FeaturesDwelling includes three bedrooms, kitchen, dining, meals area, laundry, bathroom and water closet. Further information regarding internal condition of dwelling were unavailable.

4.2.5External FeaturesThe dwellings exterior is brick veneer, roofing is cement tiling; windows are timber frames, chimney gas heater, shed at rear of property.


The vegetation on the property was very overgrown and unkempt obscuring the dwelling making an effective evaluation of exterior difficult to access.

4.2.6Location / External InfluencesThe property has easy access to main road and local facilities by car. However it is not within walking distance to the Bayswater train station and local amenities which make the property less desirable.


Adjusted sale price for Sale B

Five Hundred and Eighty-Nine Thousand, Four-Hundred and Forty-Seven Dollars ($589,447)

Adjustments were made as follows; superior amount of bedrooms $20,000 increase; inferior lot size $77,500 increase; Inferior location $100,000 decrease; capital gains adjustment $947.

4.3 Sale C111 Scoresby Road, Bayswater, Victoria

4.3.1Sale DetailsSale Price: $470,000 Sale Date: 10/03/2015

Lot Size: 779m2 Three bedrooms Double lock-up garage Lounge room Bathroom

4.3.2Parcel DetailsLot / Plan: Lot 25 LP53599 SPI Standard Parcel Identifier): 25/LP53599

Local council: Knox Council property number: 119712

Planning Zone Summary

Planning zone: Neighbourhood residential zone – Schedule 3 (NRZ3)

Schedule to the neighbourhood residential zone – Schedule 3

Planning overlay: Significant landscape overlay (SLO)

4.3.3SelectionSale B has an addition an addition bedroom, but the state of the improvement internally and externally make it a comparable property and the location.

4.3.4 Internal FeaturesThe property’s floor plan includes three bedrooms, kitchen, lounge, family room, bathroom, laundry and an additional water closet. Features include gas cooktop/stove, split system air conditioning, wall to wall carpeting throughout lounge and family room, tiles throughout the remained of the dwelling. Walls are painted hard plaster, ceilings are hard plaster.


Physical obsolescence is consistent throughout the dwelling as it appears renovations were incomplete at time of sale. The bathroom was incomplete with painting and work incomplete, as with the lounge and family rooms the wall had yet to be painted to cover plaster work.

4.3.5External FeaturesExternally the dwelling has a brick veneer, cement tile roofing, timber window frames, steel guttering and a double lock up garage.

4.3.6Location / External InfluencesThe location has ease of access to main roads, shopping, local schools, medical centres and public transportation. The property is located walking distance to Bayswater train station and its shopping district, this adds to the locations desirability. The lot size is sufficient for possible subdivision or redevelopment which adds to property desirability.


Adjusted sale price for Sale C

Six Hundred and Six Thousand and Forty-Eight Dollars ($606,048)

Adjustments were made as follows; superior amount of bedrooms $20,000 decrease; inferior lot size $125,625 increase; Inferior location $20,000 increase; capital gains adjustment$423.

5 ValuationThe valuation of the subject property is based on Comparative Analysis using the comparable sale properties researched. The properties were screened by land size, location and condition of improvements.

As of 15 May 2015 it is estimated the subject properties market value is

Five Hundred and Ninety-Eight Thousand, Five Hundred and Fifty-Nine Dollars ($598,559)

This figure was obtained by using the assumptions that sq.m per lot is valued at $625, additional bedroom are valued at $25,000, location adjustments were made based on location desirability and adjustments for condition of improvements $10,000.

This figure is closely aligned with the assumption that land value is $625 sq.m where based on sq.m the value would have been $612,500. Using the mean of the adjusted sale price from the direct comparison table with adjustments (see appendices) the market estimation was taken.


6 Appendices

Table 1.0 Direct Features Comparison

Subject Property Sale A Sale B Sale C

Bedrooms 2 2 3 3

Bathrooms 1 1 1 1

Area in sq.m. 980 sq.m. 742 sq.m. 856.sq.m. 779 sq.m.

Quality of Land Good Similar Inferior Similar

Location Average Superior Inferior Inferior

Construction condition Average Similar Inferior Inferior

Legal Freehold Freehold Freehold Freehold

Type of sale Arm’s length Arm’s length Arm’s length

Conditions of improvements Average Average Poor Poor

Price $481,000 $421,000 $470,00

Table 2.0 Direct sales comparison with adjustments

Subject Sale A Sale B Sale C

Sale Price $ 481,000 $ 421,000 $ 470,000

Bedrooms -$ 20,000 -$ 20,000

Adjsted for area sq.m $ 148,750 $ 77,500 $ 125,625

Location -$ 30,000 $ 100,000 $ 20,000

Adjusted for Improvments $ 10,000 $ 10,000

Capital gain Adjustment $ 433 $ 947 $ 423

Adjusted sale price $600,183 $589,447 $606,048

*Land valued at $625 per sq.m.

*Additional bedrooms valued at $20,000

*Location desirability estimated value change

*Condition of improvements valed at $10,000

*Capital gains adjustment at annual growth of 5.4%



Fig 1. 24 Maple Street, street view (Source: Corry Cincotta)

Fig 2. 24 Maple Street, Area Map (Source: Land.vic.gov.au)


Fig 3. 105 Stud Road, Area Map (Source: Land.vic.gov.au)

Fig 4. 105 Stud Road, Street View (Source: Corry Cincotta)


Fig 5 4 Wattle Road, Area Map (Source: Land.vic.gov.au)

Fig 6 4 Wattle Road, Street View (Source: Corry Cincotta)


Fig 7 111Scoresby Road, Area Map (Source: Land.vic.gov.au)

Fig 8 111 Scoresby Road, Street View (Source: Corry Cincotta)


7 RefferencesAppraisal Institute, 2015, the Valuation of Real Estate, the Australian Property Institute, Canberra. Australian property institute, 2012, Australian and New Zealand Valuation and Property Standards, Australian Property Institute, Canberra.

Realestate.com.au, 105 Stud Road, Bayswater 3153, Realestate.com.au, viewed May 11 2015, <http://www.realestate.com.au/property-house-vic-bayswater-119103543>

Realestate.com.au, 111 Scoresby Road, Bayswater 3153, Realestate.com.au, viewed 10 May2015 <http://www.realestate.com.au/property-house-vic-bayswater-119123243>

Realestate.com.au, 24 Maple Street Bayswater Vic 3153, Realestate.com.au, viewed 10 April 2015, < http://www.realestate.com.au/property-house-vic-bayswater-119041955>

Realestate.com.au, 4 Wattle Road, Bayswater 3153, Realestate.com.au, viewed May 10 2015, <http://www.realestate.com.au/property-house-vic-bayswater-118715507>


http://www.realestate.com.au/property-house-vic-bayswater-118715507



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assignement 2 800717795