Topic 3-4

Supplementary material

Residential valuation and security assessment for mortgage purposes

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Residential valuation and security assessment

for mortgage purposes

Client: Email:
Postal address: Fax:
Contact:
Borrower: Val Ref No:

1. Property summary Apt/Unit/Flat

Valuation Address:
Title Type: Strata Plan Site Area: Strata
Title Details: LGA: The Hills
Encumbrances/Restr’ns: Not known, current copy of title not supplied
Site Dimensions: Strata Plan
Zoning: R4 High Density Residential
Main Building: Unit with 2 bedroom/s 2 bathroom/s
Built About: Circa 2010 Additions: None Apparent
Car Accommodation: Single basement car space Car Area: 18.00 m²
Areas: Living: 110.00m2 Storage: 6.00m2
Marketability: Moderate Current Use: Residential
Environmental Issues: Known — see comments Heritage Issues: Not known
Essential Repairs: None known

2. Risk analysis * Must comment in additional comments on any ‘3’, ‘4’ or ‘5’ rating

Property Risk* Ratings 0 1 2 3 4 5 Market Risk* Ratings 0 1 2 3 4 5

Location & Neighbourhood: X Recent Market Direction: X

Land (Incl Planning, Title): X Market Volatility: X

Environmental Issues: X Local Economy Impact: X

Improvements: X Market Segment Conditions: X

Risk Ratings: 0 = Not Known 1 = Low 2 = Low to Medium 3 = Medium 4* = Medium to High 5* = High
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3. Valuation & assessments summary

Interest Valued: Fee Simple Vacant Possession Other Assessments:

Value Component: Existing Property Replacement Insurance: Owners Corporation Responsibility

Units in Development: 85 Rental Value Unfurnished: $420

Unit Entitlement: UK Out Of: Uk Actual Rental: N/A

Strata Market Value: $450,000

Documents to sight: Current Certificate of Title, Plan of Subdivision Recommendation: Yes
I hereby certify that I personally inspected this property on the date below and have carried out the assessments above as at that date. Neither I,
nor to the best of my knowledge, any member of this firm, has any conflict of interest, or direct, indirect or financial interest in relation to this
property that is not disclosed herein. This Report is for the use only of the party/to which it is addressed and its mortgage insurers for first mortgage
purposes only and is not to be used for any other purpose. No responsibility is accepted or undertaken to third parties in respect thereof.
No responsibility is accepted or undertaken in the event that the party/s to which it is addressed use this Report for any other purpose apart from
that expressly outlined above. This Report is made in accordance with the PropertyPRO Residential Valuation and Security Assessment Pro-forma
Supporting Memorandum and must be interpreted with that Memorandum. The agreed parties are bound by the provisions of the Supporting
Memorandum. The Supporting Memorandum is available at http://www.api.org.au.

Inspection Date: 01 October, 2015 Valid Date: 01 October, 2015

Valuer: Firm:
Qualifications/Reg#: AAPI CPV Reg. NSW
Signature: ABN:
Counter Signatory:
Address:
Qualifications/Reg#:
Phone:
Signature:
Fax:
Email:
Whilst not having inspected the property, I, the counter signatory, have reviewed the draft valuation and working papers, and based upon that
review and appropriate questioning of the Valuer obtained reasonable satisfaction that the value opinion contained in the valuation has been
reached, based on reasonable grounds.

4. Land
Property Identification: The property has been identified by reference to Commercial Database

Has Title been Searched: No Has Title been Sighted: No

Zoning Effect: Subject Complies Zoning Category: LEP 2011

Location: Northmead is located approximately 32 kms north-west of the Sydney GPO. Access to the city is
available by road via the M7 Motorway or by rail from Westmead Station.

Neighbourhood: Situated between North Rocks to the east and Winston Hills and Old Toongabbie to the west,
Northmead is an established residential area offering public pre-school, primary and secondary
schooling, Northmead Reserve with picnic areas, Bidjigal Reserve and Charles Herbert Reserve.
Retail and commercial facilities are available at Northmead Plaza.
Residential development consists of single and two storey detached dwellings of varying ages.
The Westmead Hospital is situated a short distance to the south in Westmead.

Site Description & Access: A unit site on the low side of the road

Services: Connected services — mains water, mains sewerage, electricity, telephone, mains gas,
all weather road access
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5. Main building — unit

Style: Multi storey Conventional Street Appeal: Average
Main Walls & Roof: Brick & Cement tile Window Frames: Aluminium
Main Interior Linings: Plasterboard, Rendered brick Flooring: Concrete
Internal Condition: Good External Condition: Good
Interior Layout: Functional

Accommodation: 2 bedroom/s, 2 bathroom/s, entry, entry foyer, entry hall, kitchen/meals/family, laundry,
powder room, separate W/C

PC Items: Good quality PC Items including bath, common hot water system, double bowl sink,
electric under bench oven, gas cooktop, gas hot water system, range hood, laundry facilities,
laundry tub, two toilet suites, two single bowl vanities

Fixtures & Features: Alarm system, built in robes, Caesar stone benchtops, carpet, ceiling fans, ceramic tiles,
ducted air conditioning, gas ducted heating, linen cupboard, new carpet, reverse cycle split
system air conditioner

6. Ancillary improvements
Single basement car space, concrete driveway, concrete paths, timber paling fencing, basic gardens,
well maintained common areas, balcony.

7. Sales evidence and the market

Address Sale Date Price Brief Comment In Comparison to Subject:
34/56 Briens Road 10-Jun-2015 $462,500 Built 2009, 2 bedrooms, 2 bathrooms, Superior overall —
NORTHMEAD multi storey, rendered brick walls with similar location and
single basement car space. presentation
Modern residential home unit, modern
internal presentation, located opposite
main road, ground floor court yard

5/2 Howard Avenue 16-May- $421,000 Built 2011, 2 bedrooms, 2 bathrooms, Inferior overall —
NORTHMEAD 2015 multi storey, rendered brick walls with same location,
single basement car space. inferior presentation
Modern Home unit, modern internal
presentation, carpet to lounge and dining

8/14 Campbell Street 9-Apr-2015 $486,000 Built 2000, 2 bedrooms, 2 bathrooms, Superior overall —
NORTHMEAD multi storey, brick veneer walls with superior location and
single basement car space. presentation
Average presentation, modern complex,
modern kitchen and bathrooms,
well maintained complex
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Address of Property:

Current/proposed sale of subject property: N/A

Prior sale of subject property: 17/12/2009, $360,000

Estimated selling period: 0–6 months

Sale in line with local market: N/A

Copy of contract of sale sighted: N/A

Level of market activity: Increasing strongly

8. Additional comments

General subject property comment:

The subject property comprises a two storey 2 bedroom, 2 bathroom residential home unit with single
basement car space. The home unit presents well internally with modern kitchen and bathrooms and well
maintained living areas. The subject property has a large courtyard to the rear.
An up-to-date Title search has not been sighted or provided with our instructions. Our valuation is subject
to the land being unaffected by any adverse encumbrance, right or restrictive covenant including any unit
being held under an ownership structure other than Strata Title, i.e., Company Share or Stratum Title.
Should future Title searches reveal otherwise, we reserve the right of comment and/or re-valuation.

Environmental issues risk analysis rating:

The subject property is adversely affected by the busy road on which it is located. Consequently, it is
affected by some noise pollution which may deter some purchasers, and this has been reflected in our
valuation.

Recent market direction rating:

Residential property market conditions have improved over recent years, there is currently a higher level
of demand for properties which is causing property values to increase with real estate agents reporting
relative short selling periods and increased buyer demand primarily due to lack of properties on the market
and interest rate reductions allowing more people to enter the market.

Environmental issues:
The subject property is adversely affected by the busy road on which it is located. Consequently, it is
affected by some noise pollution which may deter some purchasers, and this has been reflected in our
valuation.
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9. Important notes & qualifications

Disclaimer:
We have carried out an inspection of exposed and readily accessible areas of the improvements. However,
the valuer is not a building construction or structural expert and is therefore unable to certify the structural
soundness of the improvements.
Readers of this report should make their own enquiries. This Valuation has been based on the condition of
the structural improvements and the property in general as at the inspection date, and if the property has
to be sold in circumstances where its condition has deteriorated and/or essential fixtures/fittings removed
there is likely to be a significant write down in the asset value when compared to the current assessment.
Under these circumstances the Valuer will not be responsible for any reduction in value. In regards to the
Insurance Replacement Cost estimate, the recipient of this report is advised that the Valuer is not a
quantity surveyor and has relied upon published building costing guides to arrive at the opinion of the above
re-instatement value.
Market Value is defined as the estimated amount for which an asset should exchange on the date of
valuation, between a willing buyer and a willing seller in an arm’s length transaction after proper marketing,
wherein the parties had each acted knowledgeably, prudently and without compulsion.
Unless stated as otherwise in this report we advise that we have not searched or been provided with a copy
of the current Title or Registered Plans and that any dimensions or land areas quoted in this report have
been obtained from third party information sources and whilst every endeavour has been made to verify
such information we accept no responsibility for inaccuracy of any information provided and relied upon.
The client acknowledges and recognizes that the Valuer is not expert in identifying environmental hazards
and compliance requirements affecting properties. The Valuer has endeavoured to identify all matters of
environmental concern and the effect they might have on the value of the property. However, the Valuer
will not be held liable nor responsible for his/her failure to identify all such matters of environmental
concern and the impact which any environmental related issue has on the property and its value including
loss arising from site contamination; or the non-compliance with environmental laws; or costs associated
with the clean-up of the property to which an environmental hazard has been recognized, including action
by the Environmental Protection Agency to recover clean-up costs pursuant to the relevant Environmental
Protection Act.
This valuation is current as at the date of valuation only. The value assessed herein may change significantly
and unexpectedly over a relatively short period (including as a result of general market movements or
factors specific to the particular property). We do not accept liability for losses arising from such
subsequent changes in value. Without limiting the generality of the above comment, we do not assume
any responsibility or accept any liability where this valuation is relied upon after the expiration of 3 months
from the date of the valuation, or such earlier date if you become aware of any factors that have any effect
on the valuation.
This Valuation is given subject to the following Prudent Lending Clause, unless; the person or entity making
such loan is an authorised deposit taking institution within the meaning of the Banking Act 1959
(including but not limited to any bank, building society or credit union). The Valuation is prepared on the
assumption that the Lender as referred to in the valuation report (and no other) may rely on the valuation
for mortgage finance purposes and the Lender has complied with its own lending guidelines as well as
prudent finance industry lending practices, and has considered all prudent aspects of credit risk for any
potential borrower including the borrowers ability to service and repay any mortgage loan. Further,
the valuation is prepared on the assumption that the Lender is providing mortgage financing at a
conservative and prudent loan to value ratio (LVR). The valuer accepts no liability whatsoever if prudent
lending practices fail to be strictly observed and/or if the lender relies solely on this valuation, and no other
criteria, to advance loan funds.
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Unless stated as otherwise in this report we advise that a copy of the current Certificate of Title has not
been provided or searched. This valuation assumes clear title. Should any encumbrances, easements,
leases or other restrictions not mentioned in this report be known or discovered then the valuation should
be referred to the valuer for comment.
Valuations of residential property for mortgage security purposes are undertaken on the basis that GST is
not applicable. This valuation is prepared on the assumption that the subject property does not constitute a
‘new residential property’ as defined under ATO Ruling GSTR 2003/3. Further it is assumed that the subject
property will transact as a residential property between parties not registered (and not required to be
registered) for GST. The market valuation herein reflects a market transaction to which GST is not
applicable.
Liability limited by a scheme approved under Professional Standards Legislation.
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Laundry

01/10/2015 10:10 AM

Kitchen

01/10/2015 10:15 AM
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Bathroom

01/10/2015 10:09 AM

Rear

02/10/2015 10:24 AM