Subject: Property Valution (Real Estate/Estate Management)

Valuation Mathematics Question.

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b) Mr. Ahmad owns a freehold interest in a two storey shop office in Taman Nakhoda. Recently, the building was let for a term of 6 years at RM4,000 per month, with the landlord responsible for annual outgoings. Other particulars regarding the subject property are as follows: Annual Value RM45,000 Emphasis Assessment Rate 9% of annual value Repairs RM2,000 per annum (external) RM1,500 per annum (internal) Insurance RM300 per annum Quit Rent RM600 per annum A similar property in the same vicinity was transacted recently at RM700,000. The rental value of the property is RM5,000 per month (net). Based on the above information, determine: iv) The net rent of the subject property (3 marks) v) The All-risks Yield for 2-storey shop offices in the area (3 marks) vi) The value of the freehold interest in the property. (9 marks)