You are a qualified valuer with a graduate valuer working under your supervision. You want to train up this junior valuer and give him a valuation task using the following data: A freehold shop with an existing tenancy that will expire in 3 years. The existing annual rent is $42,500 gross, and the outgoings are at 25% of gross rent. The capitalisation rate for similar properties is 7% and the current full market gross rent is $50,000 p.a. The junior valuer has prepared the following valuation for your scrutiny. Annual gross rent Less outgoings @ 25% Net rent YP in perp @ 7% Market value $42,500 $10,625 $31,875 14.2857 $455,357, say, $456,000 Comment on the validity of this valuation. Is it correct? If not, what is wrong? (10 marks) Prepare a valuation to show the junior valuer the correct approach. (10 marks) Show the junior valuer how the equivalent yield for this property is calculated. (10 marks) You are a qualified valuer with a graduate valuer working under your supervision. You want to train up this junior valuer and give him a valuation task using the following data: A freehold shop with an existing tenancy that will expire in 3 years. The existing annual rent is $42,500 gross, and the outgoings are at 25% of gross rent. The capitalisation rate for similar properties is 7% and the current full market gross rent is $50,000 p.a. The junior valuer has prepared the following valuation for your scrutiny. Annual gross rent Less outgoings @ 25% Net rent YP in perp @ 7% Market value $42,500 $10,625 $31,875 14.2857 $455,357, say, $456,000 Comment on the validity of this valuation. Is it correct? If not, what is wrong? (10 marks) Prepare a valuation to show the junior valuer the correct approach. (10 marks) Show the junior valuer how the equivalent yield for this property is calculated. (10 marks)