CONFIDENTIAL 1 AP/JULY 2020/RES411

UNIVERSITI TEKNOLOGI MARA

FINAL TEST

COURSE : INTRODUCTION TO PROPERTY VALUATION

COURSE CODE : RES411
EXAMINATION : JULY 2020 [COVID-19]
TIME : 9.00 AM (13/7/2020) – 9.00 PM (13/7/2020)
12 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 in English.

3. Please answer Part A and Part B questions in separate paper sheets and it must be in
handwritten form. Please save the submission in a PDF form.

4. Please submit the answer scripts in the Google Classroom’s tray created by the respective
lecturers. Any late submission will be penalized.

5. Plagiarism is strictly prohibited. Students will be held responsible for any plagiarism case in
accordance to the UiTM Academic Regulation (Amendment 2017).

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

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This examination paper consists of 4 printed pages

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PART A

QUESTION 1

Without using Parry's Valuation Tables, solve the following problems by showing appropriate
calculations.

a) i) If Present Value of RM1 for 10 years @ 10% is 0.3855, calculate the Amount of RM1
per annum for 10 years @ 10%.
(4 marks)

ii) If Annual Sinking Fund for 15 years @ 7% is 0.0398, calculate the Present Value of
RM1 for 15 years @ 7%.
(3 marks)

iii) If the Amount of RM1 for 20 years @ 9% is 5.6044, calculate the Years Purchase
Reversion to Perpetuity for 20 years @ 9%.
(3 marks)

b) A machine was purchased 3 years ago at a price of RM150,000. In 2019, the value of
the machine decreased to RM126,960. Assuming the depreciation rate is estimated at
8% per annum. Calculate the value of the machine after 10 years and at what year the
machine be worth a value of RM50,000?
(5 marks)

c) The owner of a freehold property will receive net income of RM18,000 per annum
commencing in 5 years’ time. Assuming a return of 7%, calculate the value of his interest
on the property.
(5 marks)

d) Cik Ayunie purchased a one and half storey bungalow house at Seksyen 7, Shah Alam
for RM1,700,000. She intends to apply loan from the Affin Bank Bhd. The maximum loan
can be approved by the bank is about 90% from the purchase price but Cik Ayunie only
need 80% loan. Calculate the installment payable per month for 35 years loan duration
with an interest rate of 4.5% per annum.
n
(5 marks)

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QUESTION 2

a) List ten (10) of the contents available in the land title documents under National Land
Code 1965 (Amended).
(10 marks)

b) Explain with suitable examples on the following:

i) Freehold interest and Leasehold interest in property.

(7 marks)

ii) Express condition and Implied condition according to National Land Code 1965
(Amended).
(8 marks)

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PART B

QUESTION 1

a) Encik Faiq Sado is a young entrepreneur and currently becomes a successful man in
healthcare business. He has invested in shares and gold and now he is interested to
invest in properties. As an expert in property valuation and property investment, you
need to give him advice on the following:

i) Choose two (2) residential properties and two (2) commercial properties that Encik
Faiq Sado can invest in.
(4 marks)

ii) Give one (1) reason for each of the above properties why you think is most suitable
for his investment purpose.
(4 marks)

iii) Identify four (4) factors to be considered when investing in the above properties.

(8 marks)

iv) Give one (1) reason why Encik Faiq Sado should choose different types of asset for
investment purpose.
(1 mark)

b) Identify two (2) advantages and two (2) disadvantages of investing in cash investment.

(8 marks)

QUESTION 2

Explain in details three (3) contents of the steps involved to determine the value of property
using the Comparison Approach and Residual Approach.

(25 marks)

END OF QUESTION PAPER

PART A = 50 MARKS, PART B = 50 MARKS, TOTAL = 100 MARKS

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