CONFIDENTIAL, APIDEC 2015/RES411 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE INTRODUCTION TO PROPERTY VALUATION COURSE CODE : RES411 EXAMINATION DECEMBER 2015 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of two (2) parts: PART A (3 Questions) PART B (3 Questions) 2 ‘Answer four (4) questions only. Answer Question 1 and one (1) other question from PART A and two (2) questions from PART B in a separate Answer Booklet. Start each answer on a new page. 3 Do not bring any material into the examination room unless permission is given by the invigilator.. 4 Please check to make sure that this examination pack consists of i) the Question Paper ii) two Answer Booklets ~ provided by the Faculty 5. ‘Answer ALL questions in English, DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 4 printed pages (© Hak Cipta Universiti Teknologi MARA. CONFIDENTIALCONFIDENTIAL 2 APIDEC 2015/RES411 PARTA QUESTION 1 Without using Parry's Valuation Tables, solve the following problems by showing suitable calculations. a) i) Given the Year's Purchase of a reversion to perpetuity for 20 years @ 8% is 2.6819, calculate the Annual Sinking Fund for 20 years @ 8%. (3 marks) ii) If the Amount of RM1 per annum for 10 years @ 6% is 13.1808, calculate the Present Value for 10 years @ 6%. (3 marks) ili) What is the amount accumulated if RM20,000 is invested at 8% for 5 years and the interest is payable quarterly? (3 marks) b) Calculate the Year's Purchase for an income receivable annually in advance for 4 years at an interest rate of 10% per annum. (5 marks) ©) En. Fahim received an income of RM15,000.00 per annum net for 3 years. His income is expected to increase to RM20,000.00 per annum net on the 4th year to perpetuity. Find En. Fahim's interest assuming the rate of return at 8% per annum (6 marks) d) Puan Aziyati purchased a bungalow house at Alam Impian, Shah Alam for RM1,500,000. Calculate the installment payable per month if she obtained a 90% loan for 25 years with a fixed interest rate of 7% per annum from CIMB Bank Berhad. (5 marks) QUESTION 2 a) State five (5) steps taken during the appraisal or valuation process. (6 marks) b) Explain and identify the roles and functions of a Valuer and a Property Manager in the real estate management practice. (20 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL, 3 APIDEC 2015/RES411 QUESTION 3 a) Briefly explain five (5) purposes of title searches in conducting property valuation. (10 marks) b) There are two (2) fundamentally different forms of legal ownership, which are freehold interest and leasehold interest. Distinguish between freehold interest and leasehold interest in real estate. (10 marks) ¢) The Torrens System is the basis of National Land Code 1965 (amended) which is the current prevailing land law in Malaysia. List five (5) characteristics of the Torrens System. (5 marks) (© Hak Cipta Universiti Teknologl MARA CONFIDENTIALCONFIDENTIAL, 4 APIDEC 2015/RES411 PART B QUESTION 1 a) Define the term “value” and elaborate the types of value. (12 marks) b) List three (3) characteristics of value. (3 marks) ©) Discuss five (5) factors which can influence property values. (10 marks) QUESTION 2 a) Distinguish between general investment and property investment. (12 marks) b) Describe a property investment portfolio (S marks) ©) Determine four (4) qualities of an ideal investment. (8 marks) QUESTION 3 a) Illustrate by using a suitable example, how net rent is derived. (10 marks) b) Explain a suitable method to value the following properties: i) A semi-detached house. ii) Amodern cinema, ili) A government school. iv) A three-storey shop house. V) A potential land to be developed for mixed development project. (15 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL