Google Planimeter

To measure the size of a property on Google Map

 

http://www.acme.com/planimeter/

Council valuations vs. independent valuations methods

 

• By Greville Pabst
• Published 18/10/2007

 

The valuation low-down...

There is no doubting the confusion surrounding the differences between a council rates notice valuation and an independent property valuation. Some property owners swear by their rates notice valuation, even though they may not realise they are conducted every two years. Whereas, some are property savvy and understand the property market is prone to fluctuation.

To paint a clearer picture on how local councils determine the value of a property, councils peruse three tiers of employees who collate this information consisting of students/administration, permanent staff who are CPV qualified valuers and contracting companies.

The council classifies the properties within their municipal area based on various features including type of construction, use, building size and land area.These features are then weighed and analysed against sales of each type of property from 3 months before and after the re-valuation date (the next one being January 2008), within the same municipality to determine the market value.

The purpose of a council rates valuation is to divide the whole budget of the council equitably between the rate payers – being owners of commercial, residential and industrial properties.This is done by applying a rate in the dollar by the capital improved value of the property.Other information gathered by the valuation process is used by other government departments for the collection of say, land tax.

The final analysis of each subject property ends up on a rates notice issued to the property owner and is broken down into three different values:

1.Site Value

2.Capital Improved Value (Land Value & Value of Improvements)

3.Net Annual Value; which under the relevant legislation is calculated at 5% of the CIV.The NAV is meant to be an indication on the rental value of the subject property.

The accuracy of the valuation will depend on the diligence of the council valuation staff.Some councils pride themselves on delivering up the most accurate valuation possible, whilst others are happy to appear equitable between all rate payers.

It must be noted that these valuations are done every two years but can only be accurate for a short period of time after the relevant date.For example, the last valuation was 30^th January 2006, hence being valid for only a short time thereafter. As at today's date, areas close to the CBD (inner circle), have seen the market values of property drastically understated on their rates notice; whilst areas in the outer circle such as Werribee, may be overstated – purely due to the direction the market has moved since the last valuation date.

Other important things to note are that only approximately 10% of properties in a given municipality are inspected on a rotational basis for a re-valuation and there could be 40 -50 thousand homes in only one municipal area.

Contrary to council rates notice valuations, properties valued by an independent property expert are conducted for different purposes such as refinancing, investment portfolios, family law, body corporate to name a few.

The independent valuation process starts with a physical inspection of the property. The valuer walks around and through the property taking measurements and note of the number and type of rooms, fixtures and fittings, and improvements. The valuer then employs three methods to further analyse the property in order to come up with a value range: direct comparison, summation, and capitalisation of net income methods.

The field of property valuations is often described as an art and not a science, as it takes into consideration so many tangible and intangible aspects of a property and its surrounds. Valuations are a professional opinion based on available evidence; valuers do not set new benchmarks. They must be guided by what has sold recently, that is, within the past six months.

The direct comparison method involves researching recent sales of similar properties in the immediate surrounds, referred to as 'comparable sales'. The subtle and not so subtle differences are taken into consideration to determine the extent to which these comparable sales can be used as a guide to the value of the subject property. In this way, apples are compared with apples and necessary adjustments can be made for the bruises.

The summation method is the land value plus the depreciated value of improvements, which comprises the dwelling plus ancillary features such as garage, pergola and swimming pool. Land value takes into consideration size, shape, topography, slope, location and surrounding infrastructure and amenities. The value of improvements incorporates the style, age, architectural features, layout, number and purpose of rooms, and renovations in addition to the overall appearance and condition.

The combination of these two methods allows the valuer to arrive at a valuation range. It is then up to the skill and experience of the valuer to consider any risks associated with the property or its location to be able to refine the valuation figure.

The valuer may also check these values by way of capitalising net income. This involves applying an investment yields to assessed market rental of the property to derive the current market value. This method is commonly used when valuing investment properties.

When refinancing or selling a property, one may ask - which is the preferred valuation to rely on?Given the fact that council rates notice valuations are conducted only every two years, and only 10% of properties within any given municipality are physically inspected, it is no doubt that an independent valuation is the way to go.Independent valuations are conducted on an as-needed basis and are reflective of the 'present'.Furthermore, banks and lenders will only accept valuations performed and signed off by an independent property expert listed on their panel of valuers.

Building & pest inspection - www.buywiseinspections.com.au

source: www.homeiown.com

Pre-purchase inspection: things that go wrong and how to get it right

I recently had two building and pest inspections done by two different companies. The price was almost the same – but the difference in quality of service was amazing.

The first company responded to my booking promptly and arranged for the inspection to be carried out on the next day. I was promised that in case they find termites I will get a call immediately. Of course I was hoping that they wouldn’t because I really had my heart set on that property, but guess what – they did. Their inspector called me and let me know that there were signed of infestation and that the report will have the details.

Naturally, I was anxiously waiting for the report, checking my email every hour. At 12 in the afternoon I finally lost my patience and called the company only to get “Yes, we’re working on your report, it will take another hour to get it ready and, by the way, we have lost all the pictures taken during the inspection because of a faulty camera”. Can you imagine how furious I was! The only reason why I hired that company was because the sample report they had online looked really good, many large pictures with all the problematic spots circled to be easily seen.

Of course after such a fiasco I wasn’t going to hire them ever again. Luckily I found another company – and this time I will mention a name because I would recommend them to anyone: BuyWise.(http://www.buywiseinspections.com.au/) They are real professionals. The inspection was quickly booked for me by a very friendly lady, I got to choose the day and the time, they let me be present during the inspection and they were actually half an hour earlier on site than we scheduled! Pest inspector had a specially trained dog with him - what a brilliant idea to train a dog to detect termites! The building inspector didn’t leave any of my questions unanswered and only left when I was completely satisfied. I got the report early on the next day, great pictures and even an estimate of costs for all the repairs needed. I would definitely use their services again.

What's cheaper than building your own house

source: www.homeiown.com than building your own house

If you are on a tightest budget and even building your own house is too much for your pocket, there is another way. You can buy a block of land and relocate someone else’s house – how’s that for an idea?

The advantages are obvious – it’s cheaper than building a new house (you can save up to 50%), it’s faster – removal can be finished within a couple of weeks, and often the quality is better because many of the older houses were built using higher quality materials than those used today.

Apparently there are many people who sell the houses they own for removals - to avoid paying demolishing costs. I saw several houses for sale in the Trading post (http://www.tradingpost.com.au) for $1000 – $2000, plus the removal of a house costs, about $30000 - $35000. The way it is done, you hire a removal company and they handle everything – remove the roof, cut the house in sections of transportable size and then move the house to your site where they install and re-join it, as well as put a new roof over it.

Here is a couple of links to house removal/relocation companies I found:

http://www.khr.com.au/relocating
http://www.drakehomes.com.au
http://www.davidwright.com.au

 

6 types of houses in Australia you must know about

Houses in Australia - different periods and styles:

Victorian 1840 - 1890
Federation 1891 - 1913
War 1914 - 1945
Post-war 1946 - 1959
Contemporary 1960 – present. There are 2 types, “project style” – meaning a house was built from a common plan and “custom built” - meaning a house was built using a unique design.

6 ways to sell your home for more

A recent Sydney Morning Herald article points to this recent report from Archicentre - the results from a poll of over 800 architects to see what the trends were in renovations. A look at this report could help you decide which home improvements will increase the value of your home, and which will not necessarily break even.

A few other ideas that don’t involve costly renovations:

1. mow the lawn; tidy the outside of the house - in times of mortgage stress, a photo of a house where the backyard is untidy suggests that the vendor is desperate to sell, and that they would take a lower price.
2. clean and tidy the bathroom - it’s a room where someone who is inspecting the house will quickly sense how well the rest of the house has been looked after.
3. remove clutter: rent some storage if you need to - a house that is full to the rafters gives a sense of being smaller than it actually is: if you clear out some of your belongings, you will instantly create more space.
4. clean the house thoroughly - in keeping with tip number 1, this will present your house in the best possible light.
5. air any rooms that need airing - though it won’t come up in the online listings, someone who inspects your house in person will be able to tell that some rooms have a musty odour. This is especially worthwhile if you have pets.
6. add some energy-efficient light globes - with so many people looking to save the planet, it doesn’t hurt to send the message to potential buyers that you are interested in doing your part.