CONFIDENTIAL, APIDEC 2018/RES411 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE INTRODUCTION TO PROPERTY VALUATION COURSE CODE RES411 EXAMINATION : DECEMBER 2018 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES a This question paper consists of two (2) parts: PART A (2 Questions) PART B (2 Questions) 2 ‘Answer ALL questions from Part A and Part B in the 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 |) 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 Teknologi MARA CONFIDENTIALCONFIDENTIAL 2 APIDEC 2018/RES411 PARTA QUESTION 1 Without using Parry's Valuation Tables, solve the following problems by showing appropriate calculations. a) i) If Annual Sinking Fund for 15 years @ 7% is 0.0398, calculate the Year Purchased b) °) for 15 years @ 7%. il) If the Amount of RM1 for 12 years @ 8% is 2.5181, calculate the Annual Sinking Fund for 12 years @ 8%. il) If Present Value of RM1 for 8 years @ 6% is 0.6274, calculate the Amount of RM1 per annum for 8 years @ 6%, (10 marks) ‘Adam bought one (1) lot of agricultural land located in Kuala Selangor, Selangor through Public auction conducted at the Kuala Selangor District Land Office. The reserve price of the land is about RMS5O,000.00 as stated in the proclamation of sales but his successful bidding price is about RM80,000. The land is a Malay Reservation status. The land area is approximately 1.5 acres and currently cultivated with old rubber trees. It is also noted that Adam was paid 10% deposit from his bidding price. He intends to apply for loan from the bank and the bank ‘only approved 90% loan from the purchased price. Calculate the installment payable per month if the loan Period is 20 years with an interest rate of 5.5% per annum, (5 marks) A printing machine was recently bought at a price of RM1,500,000.00. The depreciation {ale of the machine is estimated at 20% per annum for the first year and 10% per annum for the second year onwards. Calculate the value of the printing machine after 18 years. (6 marks) The owner of a leasehold single storey terrace house will receive net income of RIM15,000.00 per annum for 15 years. Assuming a return of 6%, sinking fund of 3% and tax of 35%. Calculate the value the leasehold property. (6 marks) (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 3 APIDEC 2018/RES411 QUESTION 2 a) Under Section 5, the National Land Code 1965 (Amended) (NLC) define the meaning of land whilst section 51, the NLC 1965 (Amended) stated the classification of land. Determine and explain the classification of land under NLC 1965 (Amended). Support your answer with suitable illustration. (10 marks) b) The system of land administration in Malaysia is based on the Torrens System. This system of land matters actually based on registration of title. i) Give three (3) advantages of the Torrens system in managing land administration in Malaysia. ii) Discuss with suitable examples the Mirror Principle and Curtain Principle in the Torrens System. (15 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 4 APIDEC 2018/RES411, PART B QUESTION 1 a) Explain the principles of ideal investment. (8 marks) b) Elaborate two (2) ways of investing in property investment. (5 marks) ©) Nelydia inherited a large sum of money from her parents and she is interested to keep her money for investment purpose. Identify four (4) types of general investments suitsbis for her. (12 marks) QUESTION 2 a) Give a definition of market rent, (2 marks) ) Identify four (4) types of outgoings to calculate a net rental value. (8 marks) ©) Explain three (3) methods of valuation available to value properties. (15 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL