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Lifestyle Property Report Template – Compensation Valuation under the Public Works Act 1981
WHY A TEMPLATE?These Templates have been developed to
1. Assist valuers to understand the valuation process for property acquired under the Public Works Act,
2. Ensure Valuers provide information in their valuation reports to enable good decision making
3. Enable easier comparisons between valuation reports4. Ensure that the valuation reports comply with current Australia and New Zealand
Valuations and Property Standards and International Valuation Standards.
The templates emphasise the obligation for valuations to be evidence based and require the Valuer to provide supporting comparable sales evidence for all stages of the valuation e.g. the ‘Before’ valuation, the ‘After’ valuation and the assessment of Injurious Affection (if any).
HOW TO USE THIS TEMPLATE
The report templates provide the recommended report format to be used for PWA acquisition work.
The structure is based on the ANZ Practice Standard 1, ANZVGN 5 and the IVS reporting standards. http://www.propertystandards.org.nz/course/view.php?id=2
Valuers should use the headings in the same order as the template and provide supporting commentary at least to the level of detail described in the template.
The valuation report is to be sent to the client as a secure PDF format (print to PDF). Do not print and scan the valuation report.
Valuers may tailor the template and add paragraphs and descriptions as appropriate depending on the subject property.
Valuers who wish to make any other changes should advise of the proposed changes in the Scope of Works.
Some valuation practices may have in-house templates or systems to assist in the report writing process. The template can be used in this manner.
All guarantees, disclosures compliance statements and disclaimers etc. are to be attached to the report.
KEY TO TEXT
Shaded text will need to be altered/ or deleted to reflect the subject property. The content and the wording of this report is an Example of a valuation complying
with IVS. The non-shaded text should be retained where possible as it is written to ensure
compliance with the current valuation standards. Note to Valuer – offer guidance as to the Transport Agency expected content and
description under that particular heading.
DISCLAIMER
Please note that the examples used in this template (property description and comparable sales) are fictional. Whilst we have tried to be as realistic as possible, any resemblance to an existing property is purely coincidental.
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VALUATION FOR COMPENSATION PURPOSES
PROPERTY ADDRESS
DATE OF VALUATION
PHOTO
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VALUATION SUMMARYF i l e N o .
D a t e
C l i e n t
L a n d o w n e r
P r o p e r t y A d d r e s s
I n s t r u c t e d B yWe refer to the written instruction from company and agreed Scope of Work of date.
We confirm that our report complies with the instructions received and scope of works, subject to the valuation assumptions detailed in this report.
P u r p o s e o f V a l u a t i o nState here the type of valuation requested e.g. a compensation valuation under Section 62 Public Works Act 1981 for total or partial acquisition and include if you have been requested to provide assessments such as a rental assessment, business loss, disturbance etc.
D a t e o f I n s p e c t i o n
D a t e o f V a l u a t i o n
L a n d A r e a ( T o B e A c q u i r e d )
Ra t i n g V a l u a t i o nRoll Number
Land value $Value of Improvements $ Capital Value $
B r i e f P r o p e r t y D e s c r i p t i o nExample - The subject property comprises a rural/ residential property of 7.25 hectares and located on the fringe of the Waikato township of Cambridge. The land is improved with an attractive double storey dwelling of come 30 years old, plus other improvements of a workshop, established gardens and good quality fencing. It is currently been used for grazing.
2.05 hectares of the property is required for the Cambridge Section of the Waikato Expressway.
V a l u a t i o n A s s u m p t i o n sThis assessment is made on the basis of and subject to certain assumptions which are noted as follows;
Examples -
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(Address) (date) Our compensation assessment has been assessed for the specific purpose of compensation under
the Public Works Act 1981 and no responsibility is accepted in the event that this report is used for any other purpose.
Our assessment addresses the Market Value of the property subject to the existing tenancy arrangements.
We assume the boundary fencing will be reinstated by the New Zealand Transport Agency (Transport Agency), and our compensation assessment is made on this basis.
The valuation is based on the Land Requirement Plans provided by the instructing party and the proposed access plans.
This report should be read in conjunction with our previous report dated 1 April 2011.
V a l u a t i o n A p p r o a c h Direct Comparison and ‘Before and After’ approach to Valuation.
E x t e n t o f I n s p e c t i o n
N a t u r e a n d S o u r c e o f I n f o r m a t i o n R e l i e d U p o n
V a l u a t i o n S u m m a r yWe assess the Compensation (including chattels), for the total property/partial acquisition of the required land to be:
Compensation $ ,000
Apportionment of Compensation Delete if valuation is for total purchaseLand & Improvements (GST inclusive, if any) $ ,000Injurious Affection $ ,000 Compensation $ ,000Less Betterment $ ,000 Total Compensation $ ,000
Valuer
CompanyContact Details
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DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENTValuers insert clauses that comply with IVS 103 reporting e.g.
1. Restrictions on Use, Distribution or Publication.2. Market Movement.3. Valuers Interest.4. Market Value Definitions.5. Confirmation that the valuation has been undertaken in accordance with the IVS and
Australia and New Zealand Valuation and Property Standards, in particular Australia and New Zealand Practice Standard 1 Valuations for Compulsory Acquisitions.
6. Identification and status of the Valuer.
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TABLE OF CONTENTSLifestyle Property Report Template – Compensation Valuation under the Public Works Act 1981.................................................................................................................1
Why a Template?......................................................................................................................................................1
VALUATION SUMMARY.............................................................................................3
DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT.......................................5
TABLE OF CONTENTS...............................................................................................6
VALUATION REPORT................................................................................................7
1.0 SITE DESCRIPTION.........................................................................................7
2.0 LAND TENURE................................................................................................8
3.0 RESOURCE MANAGEMENT...............................................................................9
4.0 RESOURCE CONSENT......................................................................................9
5.0 IMPROVEMENTS DESCRIPTION......................................................................10
6.0 PROPOSED ACQUISITION..............................................................................12
7.0 GENERAL MARKET DISCUSSION.....................................................................13
8.0 SALES EVIDENCE..........................................................................................14
9.0 VALUATION APPROACH AND REASONING.......................................................22
10.0 COMPENSATION...........................................................................................23
11.0 VALUATION PROCESS...................................................................................25
12.0 VALUATION (TOTAL ACQUISITION).................................................................26
13.0 VALUATION (PARTIAL ACQUISITION)..............................................................27
14.0 COMPENSATION ASSESSMENT......................................................................30
15.0 CONCLUDING REMARKS................................................................................31
APPENDIX I - HYPOTHETICAL SUBDIVISION Example................................................32
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VALUATION REPORT1.0 SITE DESCRIPTION1.1 Location
City
Situation
Locality
Amenities
Surrounding development
Saleability of the area
Insert map to show surrounding location and position of subject property.
1.2 The Land Land use
Land area and shape
Contour and site development
Aspect and view
Services
Access
Insert aerial photo of the subject property
1.3 Environmental Factors
Example - There does not appear to be any evidence of flooding, land subsidence or landslip and to the best of our knowledge any additional proposed road works or high tension power lines which may affect the saleability of the property. Council records have been searched to check the site history in relation to;
Contamination
Earthquake prone ratings
Weather tight issues
Asbestos
Other details on Council files which may impact value.
Example – As at the effective date of valuation there was no evidence to suggest previous or current uses of the property have impacted negatively on the value.
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2.0 LAND TENURE2.1 Certificate of Title (1)Delete the number when there is only one title
Computer Freehold Register Identifier
Tenure
Legal Description/ Appellation
Registered Proprietor
Land Area of Affected Property
Interests Registered on Title
The above (non-financial) registrations are noted and are not considered to materially affect the value of the property.
Where the registrations on the title affect the market value / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.
The Required Land Example - The land required from this title, Ref. WNXX/XXX, is a 2.05 ha triangular parcel of land on the rear boundary to be used for road widening.
2.2 Certificate of Title (2)Where the affected property is held in more than one title, list the titles separately and note the part to be acquired.
Computer Freehold Register Identifier
Tenure
Legal Description/ Appellation
Registered Proprietor
Land Area of Affected Property
Interests Registered on Title
The above (non-financial) registrations are noted and are not considered to materially affect the value of the property.
Where the registrations on the title affect the market value / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.
The Required Land
We enclose a copy [copies] of the Computer Freehold Register (refer Appendices).
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3.0 RESOURCE MANAGEMENT District Plan
Zoning
Permitted Uses
Heritage
DesignationsComment on the range of permitted activities, the application of the District Plan to the subject property and any possible effect on value. A long narrative of all the permitted activities in the zone is not required, unless the subject property’s highest and best use is not the current use.
4.0 RESOURCE CONSENTIf the property is subject to a Resource Consent, please provide a full description of the details of what the resource consent pertains to and the effect on the value of the subject property of the Resource Consent.
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5.0 IMPROVEMENTS DESCRIPTIONTo follow is a brief description of the improvements and their condition, at the date of inspection5.1 Dwelling
Type
Floor Area
Year Built (approx.) plus additions
Levels
(Insert photographs of the dwelling, front and rear views)
5.1.1 Construction Foundations
Floor
External cladding
Roof
Joinery
Internal linings
Decks / Terraces
5.1.2 Internal Layout (including fixtures and fittings) Kitchen
Dining
Lounge
Bedrooms
Bathroom(s)
Laundry
Hallway
Heating
Chattels
(Insert photographs of the kitchen and at least two other rooms to provide a good indication of the quality of the accommodation provided)
5.2 Other Buildings Garage / Carport
Other
(Insert photographs of the Other Buildings)
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(Address) (date)5.3 Other Farm Buildings
Implement Shed
Workshop
(Insert photographs of the Other Farm Building)
5.4 Other Improvements Site Development
Tracks
Water Supply
Fencing
(Insert photographs of the Other Improvements)
5.5 Condition and Repair
Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please note and provide an estimate (a range is acceptable) of remedial costs in the separate addendum as requested in the scope of works.
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6.0 PROPOSED ACQUISITION6.1 Description of ProjectBriefly describe the project for which the acquisition forms part and include a map showing the location of the subject property in relation to the project.
6.2 Description of Proposed AcquisitionDescribe the land to be acquired, dimensions etc. Refer to the Land Requirement Plan provided.
Delete the following paragraph if the acquisition is of the entire property.6.3 Impact of Acquisition on PropertyDescribe the impact of the project when completed on the retained land. This needs to include the distance of the proposed work to any dwelling on the retained land.
Describe any mitigation work proposed and the effect of this work in relation to the retained land.
If the impact of the project injuriously affects the retained land i.e. depreciation in value caused by the operation of the public work on completion, describe the factors that contribute to the injurious affection e.g. increased traffic noise, loss of privacy etc.
Similarly, if the impact of the project on the retained land is positive, or creates betterment, then the factors that contribute to the betterment are to be described.
6.4 Improvements on Land to be AcquiredDescribe the improvements that form part of the property that is being acquired.
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7.0 GENERAL MARKET DISCUSSION
Please comment on general market trends, possible evidence of changes in market trends, observations on reported listing periods and movements thereof. The general market situation is to be related to the market of the subject property.
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8.0 SALES EVIDENCE8.1 Comparable Sales of Improved Properties8.1.1 ‘Before’ Valuation (Ignoring the Work)Delete this heading if valuation is for total purchase.
In some localities and / or situations comparable sales may not relate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table.
However in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property.
Please rank the sales in ascending order of sale price, lowest to highest.
1. 116 Nadal Road
Sale date Sep 2011 A small equine property situated 2.5 km south of Grandtown. Includes a basic three bedroom, light weight constructed dwelling. Stables/ implement shed and average post and rail fencing. Of undulating contour.
This sale includes GST
PhotoSale price $897,000Land area (ha) 6.74Analysed Curtilage(2,000.m²)
$150,000
Analysed Dwg Val(…m²)
$95,000
Analysed Site Imps val (curtilage)
$50,000
Analysed Other ImpsVal (residue)
$200,000
Residual LV/ha $61,468Comparability Of similar location to the subject though with inferior improvements to
the subject property, therefore inferior to the subject property overall.2.
Sale date PhotoSale priceLand area (ha)Analysed Curtilage(…..m²)Analysed Dwg Val(…m²)Analysed Site Imps val (curtilage)Analysed Other ImpsVal (residue)Residual LV/haComparability
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3.
Sale date Photo
Sale price
Land area (ha)
Analysed Curtilage(…..m²)Analysed Dwg Val(…m²)Analysed Site Imps val (curtilage)Analysed Other ImpsVal (residue)Residual LV/ha
Comparability
4.
Sale date Photo
Sale price
Land area (ha)
Analysed Curtilage(…..m²)Analysed Dwg Val(…m²)Analysed Site Imps val (curtilage)Analysed Other ImpsVal (residue)Residual LV/ha
Comparability
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8.1.2 ‘After’ Valuation (Ignoring the Work)Delete this heading if valuation is for total purchase.
Please rank the sales in ascending order of sale price, lowest to highest.
2. 396 Ferrer Road
Sale date Nov 2011 Irregular shaped block with a basic 1970's single level dwelling and garage. Flat contour. Situated 6km north west of Grandtown.
This sale includes GST
PhotoSale price $675,000Land area (ha) 4.57Analysed Curtilage (2,000.m²)
$150,000
Analysed Dwg Val (…m²)
$90,000
Analysed Site Imps val (curtilage)
$20,000
Analysed Other Imps Val (residue)
$125,000
Residual LV/ha $66,400Comparability Due to the size and location of the sale, we consider this sale to be
slightly inferior to the subject property on an ‘after’ valuation basis.4.
Sale date PhotoSale priceLand area (ha)Analysed Curtilage (…..m²)Analysed Dwg Val (…m²)Analysed Site Imps val (curtilage)Analysed Other Imps Val (residue)Residual LV/haComparability
6.
Sale date PhotoSale priceLand area (ha)Analysed Curtilage (…..m²)Analysed Dwg Val (…m²)Analysed Site Imps val (curtilage)Analysed Other Imps Val (residue)Residual LV/haComparability
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(Address) (date)8.2 Comparable Sales of Vacant LandPlease rank the sales in ascending order of sale price, lowest to highest.
Ideally there should be adequate comparable sales to analyse both ‘before’ and ‘after’ sales. Realistically and dependent on the property type plus the strength of the market for the property, the sales volume may be restricted. In this situation, comment on the comparability of the sales to the ‘before’ and ‘after’ scenarios.
2. 25 Murray Road
Sale date Oct 2011 A block with no dwelling but good post and rail fencing and good character style implement sheds. Located in isolated Wealton 18km south of Newtown. Good quality small holdings, equine properties and lifestyle properties situated in the surrounding area.
The sale price includes GST
Photo or aerial map of saleSale price $787,000Land area (ha) 8.81Esti. Value of Imps $195,000Analysed Land Val $592,000Analysed House Site(5000 m²)Residual LV/ha $47,300
Comparability Slightly bigger than subject however locality inferior to subject therefore overall comparable to subject property in the ‘before’ situation and superior in the ‘after’ situation.
4.
Sale date Photo or aerial map of saleSale priceLand area (ha)Esti. Value of ImpsAnalysed Land ValAnalysed House Site(…….. m²)Residual LV/haComparability
6.
Sale date Photo or aerial map of saleSale priceLand area (ha)Esti. Value of ImpsAnalysed Land ValAnalysed House Site(…….. m²)Residual LV/haComparability
8.3 Sales Reconciliation TableSale No.
Address Sale date
Sale price
Land area (ha)
Comparability‘Before’ ‘After’
Sales of Improved Properties1 116 Nadal Rd Sep 2011 $897,000 6.74 ha Inferior
2 396 Ferrer Rd Nov 2011 $675,000 4.57 ha Inferior
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Sales of Vacant Land1 25 Murray Rd
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3
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8.4 Comparable Sales of Retained Land (including impact of work)Delete this heading if valuation is for total purchase.
The following sales should represent the situation of the subject property taking into account the proposed work. Where possible, include vacant land sales that represent the situation on completion of the proposed work.
2. 503 Federer Road
Sale date Sep 2011 Improved with a small 3 bedroom cottage, stables/implement shed and good post and rail fencing, this property is tidy and has SH2 along one boundary, access being off a side road.
This sale includes GST
PhotoSale price $420,000Land area (ha) 5.01Analysed Curtilage (2,000 m²
$125,000
Analysed Dwg Val (…m²)
$90,000
Analysed Site Imps val (curtilage)
$10,000
Analysed Other Imps Val (residue)
$15,000
Residual LV/ha $37,400
Comparability Poorer quality improvements than the subject property and overall inferior to the subject property.
4.
Sale date PhotoSale price $Land area (ha)Analysed Curtilage ( m²)
$
Analysed Dwg Val (…m²)
$
Analysed Site Imps val (curtilage)
$
Analysed Other Imps Val (residue)
$
Residual LV/ha $Comparability .
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5.
Sale date Photo
Sale price $Land area (ha)Analysed Curtilage ( m²
$
Analysed Dwg Val (…m²)
$
Analysed Site Imps val (curtilage)
$
Analysed Other Imps Val (residue)
$
Residual LV/ha $Comparability
8.5 Sales Reconciliation TableSale No.
Address Sale date
Sale price
Land area (ha)
Comparability
1 503 Federer Rd Nov 2011 $675,000 4.57 ha Inferior
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3
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(Address) (date)9.0 VALUATION APPROACH AND REASONING9.1 Valuation Approach/s
Discuss the reasons for adopting the valuation approach used and reasons for not using alternative (if any) approaches.
Greatest reliance should be placed on actual inputs e.g. actual cash flows generated by the property, over assumed inputs. Assumed inputs may be relevant if the actual inputs are less reliable e.g. out of date costs.
9.2 Improved Sales Summary
Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.
9.3 Vacant Sales Summary
Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.
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(Address) (date)10.0 COMPENSATION
10.1 StatuteSection 62(1)(b) states the amount of compensation payable is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise, unless
(i) the assessment of compensation relates to any matter which is not directly based on the value of land and in respect of which a right to compensation is conferred under this or any other Act; or
(ii) only part of the land of an owner is taken or acquired under this Act and that part is of a size, shape, or nature for which there is no general demand or market, in which case the compensation for such land and the injurious affection caused by such taking or acquisition may be assessed by determining the market value of the whole of the owner's land and deducting from it the market value of the balance of the owner's land after the taking or acquisition.”
Section 62(1)(c) states “where the value of the land taken for any public work has, on or before the specified date, been increased or reduced by the work or the prospect of the work, the amount of that increase or reduction shall not be taken into account”.
Therefore the value of the land taken (either the full site or a partial acquisition) must be assessed as if the work was not proposed or not in existence.
Note to Valuer - Delete paragraphs 10.2 -10.4 if the valuation is for total purchase.10.2 ‘Before’ and ‘After’ Valuation ApproachThe value of the land acquired is the difference between the ‘Before’ valuation and the ‘After’ valuation. This assesses the compensation for the loss of land and improvements on the land taken, ignoring the proposed work.
The ‘Before’ valuation is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise”. Comparable sales of vacant and improved properties have been used to assess this amount.
The ‘After’ valuation is the amount which the retained land (after the acquiring of the required land) if sold in the open market by a willing seller to a willing buyer on the specific date might be expected to realise and, again, disregarding the prospect of the proposed work. Therefore the ‘After’ valuation is of a smaller property in the exact same location and situation as the ‘Before’ property.
10.3 Effect on Retained Property – Injurious Affection / Betterment10.3.1 Injurious AffectionInjurious Affection is assessed by valuing the retained land (smaller parcel etc.) on completion of the works and comparing it to the value of the retained land, ignoring the proposed works.This has required reference to sales of properties in a location that reflects the location of the subject property on completion of the works, e.g. busy, multi-lane road with high traffic volume. Such sales provide an indication as to the permanent affect the works have on the retained property and include noise, possible poorer access etc.It must be noted that Injurious Affection can also apply to ‘other land’ of the claimant even if land for a Public Work was not directly taken e.g. a rear title owned by the claimant suffers Injurious Affection by the taking of land from a front title that includes right of way access to the rear title.
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(Address) (date)Example - Given that the ‘Highest and Best’ use of the subject property is currently a residential property in a quiet residential area, the construction of the Waikato Expressway along the southern boundary is considered to have a detrimental effect on the property’s value.Our analysis of sales evidence of residential properties with an expressway and / or a road that carries a high volume of traffic along their boundary indicate a value for the subject property on completion of the proposed work (being the retained land area and improvements) of $165,000.10.3.2 BettermentSection 62(1)(e) statesThe Tribunal shall take into account by way of deduction from that part of the total amount of compensation that would otherwise be awarded on any claim in respect of a public work that comprises the market value of the land taken and any injurious affection to land arising out of the taking, any increase in the value of any land of the claimant that is injuriously affected, or in the value of any other land in which the claimant has an interest, caused before the specified date or likely to be caused after that date by the prospect of the work:And62(1)(f) The Tribunal shall take into account, by way of deduction from the total amount of compensation that would otherwise be awarded, any increase in the value of the parcel of land in respect of which compensation is claimed that has occurred as a result of the exercise by the New Zealand Transport Agency of any power under Section 91 of the Government Roading Powers Act 1989.The amount of Betterment is the increase in value between the ‘After’ value of the subject property, ignoring the project and the value of the retained property having regard to the presence of the project.It must be noted that Betterment also includes any increase in the value caused by the project of any other land in which the claimant has an interest.Example - Given the ‘Highest and Best’ use of the property is a residential property requiring market exposure for its home industry business, the construction of the Waikato Expressway along the southern boundary will have a positive effect on the whole property’s value.Our analysis of comparable sales evidence of properties which have exposure to a high traffic volume roadway suggests that the effect of the proposed works on the retained property will increase the value due to increased market exposure and improved customer access. This increase in value is generally known as ‘Betterment’ and from comparable sales indicates a value of the retained property of between $175,000 and $185,000.
10.4 No Effect on PropertyExample - The effect of the proposed Works on the subject property is considered to be Nil. The subject property is already on a busy road with similar levels of visibility, accessibility and road noise. The exiting road is being widened slightly and it is considered that the reduction in size and the effect of the completed works will have cause no further loss in value to the subject property.
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11.0 VALUATION PROCESSThe recommended process for assessing compensation for a partial acquisition complies with the following steps:
1. ‘Before’ valuation = Market value of owners total interest ignoring the proposed work.
2. ‘After’ valuation = Market value of the owners interest after the taking of the land (retained land) but ignoring the proposed work.
3. Compare the ‘Before’ and ‘After’ valuations to assess the market value of the land being acquired.
4. Assess the impact of the project on the retained land i.e. injurious affection (damage) or betterment (enhancement) by comparing the market value of the retained land including the impact of the project to the market value of the retained land ignoring the work (para. 2 above).
The above described process is recommended to provide a clear basis for understanding the impact of the project on the retained land.
For an acquisition of a whole property, the market value is the fair market value of the land as described in the Act - S62(1)(b).
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12.0 VALUATION (TOTAL ACQUISITION)12.1 Current Market Value (Total Acquisition Ignoring the Work)Please clearly state your treatment of GST in your valuation and assessment of market value.Example – 7.25 ha (Improved)
Land Value7.25 ha @ $xx/ha $Total Land Value Say $
BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $Market Value (GST incl. if any) $
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13.0 VALUATION (PARTIAL ACQUISITION)Delete this section if valuation is for a total purchase.
If Improvements form part of the area to be acquired, note the reduced value of improvements, which may be zero, in the ‘After’ valuation.
13.1 ‘Before’ Valuation(Refer paragraph 12.1 – Current Market Value Total Acquisit ion Ignoring the Work)
Market Value (GST incl. if any) $
13.2 ‘After’ Valuation (Retained Land Ignoring the Work)Example – Retained Property 5.25 ha (Improved)
Land ValueBalance - 5.25 ha @ $xx/ha $Total Land Value Say $
BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $‘After’ Market Value (GST incl. if any) $
13.3 Valuation of Land to be AcquiredMarket Value of Land to be Acquired (GST incl. if any)
(Difference 13.1 & 13.2) $
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(Address) (date)13.4 Valuation of Retained Land (Including Impact of the Work)Example – Retained Property 5.25 ha (Improved)
Land ValueBalance - 5.25 ha @ $xx/ha $Total Land Value Say $
BuildingsDwelling – xxx m² @ $xx/ m² $Carport/ Garage – xxx m² $Implement Shed - xxx m² $Value of Buildings $Other ImprovementsSite Development $Water Supply $Tracks $Fencing $Value of Other Improvements $Chattels $Total Value of Improvements Say $Market Value of Retained Land(incl. impact of work & GST incl. if any)
13.5 Injurious Affection (Impact of the Work on Retained Land)With reference to analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Injurious Affection of the work on the retained land, (and other land of the claimants that is affected by the acquiring of the described land), as follows;
‘After’ Market Value of Retained Land $(copied from para. 13.2)LessMarket Value of Retained Land (Incl. Impact of Work)
$
(copied from para. 13.4)
Assessed Injurious Affection $
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Delete this page if there is no Betterment.
13.6 BettermentWith reference to our analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Betterment of the work on the retained land (and other land of the claimants that is affected by the acquiring of the described land), as follows;
Assessed Betterment of Retained Land $PlusAssessed Betterment of Claimants Other Land $
Total Betterment $
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14.0 COMPENSATION ASSESSMENTDelete this section if valuation is for a total purchase.The total compensation is the value of the land (and any improvements on it) to be acquired plus the injurious affection to the remaining property attributed to the proposed works less the betterment to the property on completion of the proposed works.
We assess the compensation for the acquisition of the required land to be $,000 (Dollars)
This is further broken down as follows:
Market Value of Land & Improvements to be Acquired (GST incl. if any) $Injurious Affection (to retained land) $(Total) Compensation $Delete following if there is no betterment.LessBetterment $Total Compensation $
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(Address) (date)
15.0 CONCLUDING REMARKS
This report is to be read in conjunction with the attached appendix documentation, including:
the scope of works the terms of engagement the client engagement contract
Please do not hesitate to contact me should you require any further assistance or clarification.
ValuerCompanyContact Details
A p p e n d e d CT/CFR Land Requirement Plan Longitudinal Plans Planning Conditions Photo Montage/Profile Plans/Concept Drawings Mitigation Reports Impact Reports (e.g. Traffic, noise, pollution) Designation Planning Condition
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(Address) (date)
APPENDIX I - HYPOTHETICAL SUBDIVISION Example
This example is only suitable for a small to medium sized hypothetical subdivision that has an assessed sell down period of 12 months or less. For a hypothetical subdivision where the assessed sell down period is greater than 12 months we recommend the use of the discounted cash flow method of valuation. An explanation and analysed evidence of sell down periods should be included in the valuation report. The valuer may add to or alter this format. To support this method of valuation, we recommend reference to sales of block land. (Please note that the amounts used are example only). Please state clearly your treatment of GST and ensure that the treatment of GST is consistent for all valuation scenarios.
Hypothetical Subdivision Worksheet
Val Ref: xxxx/xxxx CV $ 500,000Address: 116 Victoria
AveLV $ 475,000
Land Area (ha) 20 Rates $ 1,473Min. Size lot (ha) 5 Interest Rate 6.0%No. Sites (max) 4 Profit & Risk 25.0%Realisation period (yrs) 1
VALUATION CALCULATIONS
No of Lots - 4 sitesLot 1 $
380,000Lot 2 $
320,000Lot 3 $
320,000Lot 4 $
500,000
GROSS REALISATION $ 1,520,000
$ 1,520,000
less GST 15.0% $ 198,261
less Agents Commission 5.0% of GR excl gst $ 66,000
less advertising $ 500 per site $ 2,000
less Legal Fees $ 2,000 per site $ 8,000
$ 76,000
NET REALISATION $ 1,245,739
less Profit & Risk 25.0% of Outlay $ 249,148
OUTLAY $ 996,591
less Development Costs Development (roading, services etc) $ 25,000 per site $
100,000 Resource consent $ 10,000 $
10,000 Survey and title $ 5,000 per site $
20,000 Reserve Contribution $ 7,500 3 sites $
22,500
$ 152,500
Interest on Outlay(1/2 sell down period) 6.0% $ $
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(Address) (date)29,658 182,158
BLOCK VALUE (Excl. GST) $ 814,433
Block Value Analysis Per site $ 203,600
Per ha $ 40,700
Development Costs Analysis Per site $ 38,125
(excl. of Interest) Per ha $ 7,625
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