CONFIDENTIAL (Sa eS 7 APIJUL 2017/RES411 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : INTRODUCTION TO PROPERTY VALUATION COURSE CODE : RES411 EXAMINATION : JULY 2017 TIME : 3 HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of two (2) parts: PART A (2 Questions) PART B (2 Questions) 2 ‘Answer ALL questions. Answer questions from PART A and Part B in separate Answer Booklets. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigitator. 4 Please check to make sure that this examination pack consists of i) the Question Paper ji) 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 Teknolog! MARA CONFIDENTIALCONFIDENTIAL 2 APIJUL 2017/RES411 PART A QUESTION 1 a) Without using Parry's Valuation Tables, solve the following problems by showing appropriate calculations. i) Ifthe Years Purchase for 10 years @ 6% is 7.3601, calculate the amount of RM1 per annum for 10 years @ 6%. ii) What is the amount if RM50,000 invested at 7.5% for 5 years and the rate is payable quarterly? il) If Present Value for 5 years @ 5% is 0.7835, calculate the Years Purchase for 5 years @ 5%, (10 marks) b) Pn. Ramayana receives RM4,000 per annum for 5 years. Her income is increased to RMS5,500 per annum to perpetuity on the sixth year. Value her interest if she experts a return of 8% per annum. (5 marks) c) Ah Choong purchased a vacant bungalow lot in Seksyen 9, Shah Alam, Selangor for RM1.2 million. The total land area is about 10,000 square feet. Bank Islam was appointed a private valuer to value the land for securing loan purposes and the value is RM1.25 million. Calculate the installment payable per month if Ah Choong obtained 90% loan from the value stated in the valuation report. Loan period is 25 years with an interest rate of 5.5% per annum. (5 marks) d) Khalid Sapuan saved RM40,000 in 2010 with annual interest of 6.5%. What is the amount accumulated in the year 2020? If he withdraws RM10,000 in 2015, what is the total amount accumulated in the year 20207 (5 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 3 APIJUL 2017/RES411 QUESTION 2 a) Stamp Duty valuation is one of the statutory valuation purposes. Explain three (3) other types of valuations for statutory purposes. State the statutory acts applicable to each type of valuation, (10 marks) b) The Board of Valuer, Appraiser and Estate Agent (BOVAEA) is a professional body which controls the real estate profession in Malaysia. There are three (3) standards that have been produced by the BOVAEA for real estate practitioners. i) Give three (3) standards provided by the BOVAEA ii) Explain three (3) functions of Board of Valuers, Appraisers and Estate Agents Malaysia. (15 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 4 APIJUL 2017/RES411 PART B QUESTION 1 a) Give a meaning of investment. (3 marks) b) Discuss two (2) advantages of property investment. (4 marks) ©) Identify three (3) risks in property investment. (6 marks) 4) Tuan Ihsan is a businessman who is interested to spend some of his money for investment. Determine four (4) types of general investments suitable for him. (12 marks) QUESTION 2 a) Define the meaning of rate of return. (2 marks) b) List five (5) characteristics of market rent. ( marks) ¢) Distinguish the following methods of valuation: i) Comparison ii) Cost iil) Profit (9 marks) d) Explain how to derive a net rental value. (9 marks) END OF QUESTION PAPER © Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL