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VALUATION REPORT
OF
PORTION 134 OF THE FARM ELANDSDRIFT 467 JQ

Open Market Value R 280,000

Date of Valuation 30 June 2022

Prepared For: Madibeng Local Municipality

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1. GENERAL:
1.1. Instruction:
I Stefan Rudman was instructed by Madibeng Municipality, to visit and inspect PORTION 134 OF THE FARM
ELANDSDRIFT 467 JQ , for the purpose of providing an opinion of the Open Market Value.

1.2. Definition of Market Value:

The definition of ‘Market Value’ as laid down by the International Valuation Standards Committee is:
“The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a
willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably,
prudently and without compulsion".
A summary of the features of the ‘willing’ buyer and seller are:
They should be in a position to enter into a contract (financially and legally);
They negotiate on equal terms;
They are both well informed about the property and all its potentialities, as well as about the market for such properties
(i.e. they are as well informed as the person who has taken all reasonable steps to obtain this information).
They are not under pressure (i.e. they are not forced to buy or sell a property within a limited time); and They negotiate
the transaction rationally.

When we analyse these features it becomes clear that a ‘real’ person could seldom comply with all of them. The valuer
must therefore distance himself from the personalities concerned and imagine a hypothetical transaction in which both
the buyer and the seller have the understanding and motivations that are typical of the market for the property or
interests being valued [Minister of Water Affairs v Mostert 1966 4 SA 690 (A) 722c]. This definition of value holds true in
the case of the subject property.

1.3. Effective dates:

Date of inspection 22 May 2022
Effective date of valuation 30 June 2022

1.4. Valuation Method:

When valuing real estate the valuer must concern himself with placing a value on the rights attaching to the property and
the benefits of occupation and/or ownership thereof. In the valuation process cognisance must be taken of the purpose
for which the property is capable of being used and the future income or amenities which it is likely to produce. At the
same time, however, the property must be compared with available substitutes and/or alternative investment
opportunities. The object of the valuation process, therefore, is to arrive at a figure which will reflect the point of
equilibrium between supply and effective demand at the time of valuing the property.

The valuation of land as if vacant, or of land and improvements to or on the land, is an economic concept. Whether
vacant or improved, land is also referred to as real estate.

Real estate’s utility or capacity to satisfy the needs and wants of humans creates value. Contributing to value are real
estate's general uniqueness, durability, fixity of location, relatively limited supply, and the specific utility of a given site.

There are various methods commonly used for determining the market value of real estate. These methods of valuation
comprise:
* Direct Comparable Sales Approach
* Cost Approach
* Income Approach
* Or a combination of the above

The Comparable Sales method of valuation will be applied to calculate the market value of the subject property.
Definition of Comparable sales method:
This method applies direct comparable sales rates as indicated by recent sales and confirmed by agents active in the
area.

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 This method does not differentiate between land and improvements and applies a sales rate, inclusive of land and
improvements, to the overall size of the subject property so as to establish total value.
Said method has been the market norm for basic financial institution valuations in the past and serves to give and
indication of what the total value of the subject property should be. (Land and improvements constitutes one value).

2. PROPERTY DETALS:
2.1. Physical Address:
Street Name Close to Marikana / Mooinooi Road
Suburb / Farm Elandsdrift
Coordinates -25.727012
27.547733

2.2. Title Deed Information:

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3. MUNICIPAL INFORMATION:
3.1. Town Planning Conditions
PERMITTED ACTUAL
Zoning Agricultural Vacant land

3.2. Municipal Valuation:

Value Randage Monthly Costs Annual Costs
R 294,000 R - R -

4. PROPERTY DESCRIPTION:
The subject farm is a small farm located in close proximity of the town of Mooinooi. The property is surrounded by mines
and industrial small holdings. Most pf the property is occupied by squatters.

5. LOCALITY:

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6. COMPARABLE SALES:
The following are sales of small undeveloped farm portions which have sold in the vicinity of the subject property during
the last two years:
Sale 1
Property Description Purchase Price Purchase Date Land Extent Effective rate
Hartebeestpoort B 410 JQ Ptn 1104 R 400,000 1/29/2021 12.9140 ha R 30,974 /ha
Sale 2
Property Description Purchase Price Purchase Date Land Extent Effective rate
Hartebeestpoort B 410 JQ Ptn 1118 R 613,250.00 7/2/2020 15.1320 ha R 40,526.70 /ha
Sale 3
Property Description Purchase Price Purchase Date Land Extent Effective rate
Buffelspruit 238 JQ Ptn 100 R 300,000 10/14/2020 8.5650 ha R 35,026 /ha

7. CONCLUSION:
In terms of size, the subject property compares well with Sale 2 that sold at R 40 527 per ha. As the subject property is
copied by squatters a that has a negative impact on the sale-ability of the property a rate of R 20 000 per ha will be used
to calculate the market value.

8. CALCULATIONS:
Subject Land Extent Effective Selling Rate Calculated Value
14.2373 ha R 20,000 /ha R 284,746
Market Value R 280,000

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 .

VALUATION CERTIFICATE

I Stefan Rudman declare that I have inspected PORTION 134 OF THE FARM ELANDSDRIFT 467 JQ and that I have
verified the particulars set out in this valuation, and that I am of the opinion that the open market value is:

R 280,000
Two Hundred and Eighty Thousand Rand only

I Stefan Rudman the signatory to this document hereby confirm that I have no present or contemplated interest in this or
any other properties or any other interests, which would affect the statements or values contained in this valuation report.
The valuation enclosed herewith was therefore undertaken on a completely independent basis.

30 June 2022
Date of Valuation Stefan Rudman
N D Real Estate (Property Valuations)
Professional Associated Valuer
Council Registration No. 3693

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 CASH FLOW
Client: Err:509

GROSS ANNUAL INCOME Err:509

GROSS ANNUAL EXPENDITURE Err:508

Lettable area / Rental Escal. Escal.

Tenants Accommodation Lease expiry date
units rate /m² month rate

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Total area Err:509
Area as per valuation report

EXPENDITURE 12 8.00%
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Months
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Total
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