Valuation Report (Lots 15-22), 58-60 Queens Ave, Hamilton, 3204 - Squarespace
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Valuation Report
(Lots 15-22), 58-60 Queens Ave, Hamilton, 3204
Valuation Date: 10 February 2020
Prepared For: Da-Silva Builders Limited
Borrower: N/A
VOS Reference: N/A
Real Property Matters Ltd | PO Box 728, Cambridge 3450 | W: rpmltd.co.nz |
| E: dawn@rpmltd.co.nz | M: 027 223 5819 | i
Contents
i
1. Valuation Summary ........................................................................................................................... 1
2. Legal Description .............................................................................................................................. 2
3. Territorial Authority........................................................................................................................... 3
4. Location ............................................................................................................................................. 4
5. Land Description ............................................................................................................................... 5
6. Improvements .................................................................................................................................... 6
7. Risk Assessment............................................................................................................................... 9
8. Market Commentary ........................................................................................................................10
9. Valuation Methodology ...................................................................................................................11
10. Valuation ..........................................................................................................................................14
11. Special Assumptions ......................................................................................................................15
12. Disclaimer ........................................................................................................................................16
13. Appendix A – Historic Titles (for existing un-subdivided land parcels) ....................................21
14. Appendix B – Site Plan, Floor Plans & Elevations .......................................................................28
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
ii
1. Valuation Summary
Property Address (Lots 15-22), 58-60 Queens Avenue
Frankton
Hamilton 3204
Instructed By Leon Da Silva
VOS Reference N/A
Prepared for Da-Silva Builders Limited
Bank Reference N/A
Borrower N/A
Type of Property Residential, dwelling under construction
Purpose of Valuation To establish Market Value ‘As if Complete’ for selling purposes
Brief Description The plans supplied show eight, good quality, two-storey, three bedroom, two
bathroom duplex townhouses, with an internal access single garage and a total floor
area of 129m2, they will be constructed on 227m2 to 257m2 freehold residential sites
within a new 22-Lot development in the Frankton suburb of Hamilton City.
Valuation Date 10 February 2020
Inspection Date 10 February 2020
Report Issued Date 14 February 2020
Special Assumptions Our valuation is subject to the completion conditions contained within this report.
Significant Risks None known
Valuation We assess the Market Value ‘As if Complete’ of the townhouses as follows:
(‘As if Complete’) Lot 15 - $675,000
Lots 16 to 22 - $665,000
The values are inclusive of $15,000 of chattels and GST (if any).
Basis of Valuation The International Valuation Standards 2020 defines ‘Market Value’ as:
“The estimated amount for which an asset or liability should exchange on the
valuation date between a willing buyer and a willing seller in an arm’s length
transaction, after proper marketing and where the parties had each acted
knowledgeably, prudently and without compulsion”.
Prepared By Real Property Matters Ltd
Dawn Harpur
Registered Valuer
MPINZ, BBS (VPM), Member of New Zealand Institute of Valuers
The Registered Valuer inspected the site.
This report must be read in conjunction with the disclaimers contained at the end of this report (see Disclaimers
for full details).
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
1
2. Legal Description
The subject townhouses will be subject to a new title being issued, the property is currently part of a larger
land parcel and the information below refers to the existing titles
Record of Title Identifier: SA364/78
Land Registration District: South Auckland
Estate (Tenure): Fee Simple
Area: 860m2
Legal Description: Lot 10 Deposited Plan 14091
Registered Owners: Rachel Anne Webster
Interests: 11457566.3 Mortgage to Bank of New Zealand - 1.7.2019
Record of Title Identifier: SA374/267
Land Registration District: South Auckland
Estate (Tenure): Fee Simple
Area: 1012m2
Legal Description: Lot 3 Deposited Plan 16735
Registered Owners: Silvaback Limited
Interests: Fencing Agreement in Transfer 169112 - 16.7.1923
Appurtenant hereto is a right to convey electricity created by
Easement Instrument 9428573.10 - 13.6.2013
The easements created by Easement Instrument 9428573.10
are subject to Section 243 (a) Resource Management Act 1991
11655794.3 Mortgage to Basecorp Finance Limited - 4.2.2020
Comment on Interests A Consent Notice pursuant to Section 243(a) Resource
Management Act 1991 is where the survey plan is approved
subject to the grant or reservation of easements which will
not be surrendered except with the written consent of the
Territorial Authority.
Whilst we do not profess to have legal expertise, we do not
consider that these interests unduly affect the value of the
land.
The above interests have been taken into account in our
valuation assessment
Copy of Title See copy of title, appended
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
2
3. Territorial Authority
Resource Management
Territorial Authority: Hamilton City Council
Plan Name and Status: Hamilton District Plan – Operative
Zoning: Residential General
Permitted Activity: Residential
Development Controls (if relevant): 400m2 per residential unit
400m2 per duplex (200m2 per unit)
Zoning Effect: The residential use of the property is a permitted activity
Statutory Valuation and Charges
The Rating Valuation for the subject property has not yet been assessed.
Rating valuations are generally undertaken on a three-yearly basis and conducted using mass appraisal
valuation techniques. It is not a Market Value assessment and these values are subject to change due to
objections, subdivisions or changes to improvements. They are used by Councils to apportion the rates.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
3
4. Location
The property is situated on the western side of Queens Avenue, midway between Killarney Road and Lake
Road and is a relatively central city location.
Queens Avenue and the surrounding streets were primarily developed during the 1920s to 1950s with
average quality three bedroom dwellings, situated on larger size residential sites. A number of infill
subdivisions occurred during the 1970s to 2000s and more recently unit title and duplex developments with
multiple-units have become more popular. The majority of properties tend to sell within the $420,000 to
$760,000 price range, depending on the size, quality and condition of the properties. More superior dwellings
with larger floor area, higher quality chattels and views of the lake have sold in the $1,000,000 to $2,260,000
range.
The property is reasonably well located to public amenities with Hamilton Girls High School and Wintec
Campus within walking distance and all levels of schooling within a short driving distance. The property
adjoins the Hamilton Western Rail Trail, a walking/cycling path and is within a short walking distance to
Hamilton Train Station, Innes Common and Lake Rotoroa (Hamilton Lake).
The nearest commercial facilities are in Frankton about 850m to the north or the Hamilton Central Business
District, approximately 1.2km to the east. Hamilton City provides full range of services including Waikato
Hospital and Waikato University.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
4
5. Land Description
(The buildings shown in the aerial & photos will be
removed/demolished prior to commencement of the new
development)
Site Area: Lot 15 – 257m2
Lot 16 to 21 – 231m2
Lot 22 – 227m2
(all subject to survey and issue of new title)
Site Description: Each lot will be a rectangle shaped freehold site with the
boundary dimensions and shape shown on the attached Plan.
Earthworks will create a site with an easy slope down to the rear
boundary and vehicle and pedestrian access will be via a shared
right of way. The townhouses are situated on the western side
of the site, will face north east and have no appreciable views.
Services: All normal urban services will be reticulated including gas hot
water
Environmental: Site Contamination - None known
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
5
6. Improvements
Overview
The plans show eight, two-storey, three bedroom, two bathroom duplex townhouses with an internal access
single garage.
Dwelling Floor Plans
Floor Areas (from plans)
Accommodation: 111m2
Internal Access Single Garage: 18m2
Construction
Foundations: Concrete
Flooring: Concrete & timber mid-floor
Exterior Cladding: Brick & fibrocement board
Window Joinery: Aluminium (double glazed)
Roofing: Galvanised steel
Roof Style: Hip & gable
Spouting: Galvanised steel
Wall Linings: Plasterboard
Ceiling Linings: Plasterboard, 2.4m stud height
Accommodation
Ground Floor
Entry: Single entry door to kitchen, digital lock, vinyl floor
Kitchen: Built-in cabinetry, stone benchtops, stainless steel sink with waste
disposal unit; appliances including dishwasher, wall oven, hob &
rangehood, vinyl floor
Family/Dining: Open plan with kitchen, stacker ranch slider opening to a paved patio,
heat pump, storage cupboard, under-stairs cupboard, stairwell
Garage: Internal access single garage, fully lined, auto opening sectional door,
rear door; laundry facilities including a stainless steel tub with cabinet
First Floor
Landing: Stairwell, linen cupboard
Master Bedroom: Built-in double wardrobe; ensuite having a shower cubicle, vanity unit,
toilet, heated towel rail, extractor, mirror/medicine cabinet, tiled floor
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
6
Bedrooms (2): Both with built-in double wardrobes
Bathroom: Shower cubicle, vanity unit, toilet, heated towel rail, extractor,
mirror/medicine cabinet, tiled floor
Interior Comments: The townhouses will be of a functional design and layout with most
rooms opening from the living area and landing. Overall the finished
townhouses will provide a comfortable level of three bedroom
accommodation.
Elevations
Chattels
In our valuation we have allowed for chattels such as floor coverings, light fittings, heat pump and kitchen
appliances, we consider these items will have a value of approximately $15,000.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
7Other Buildings
N/A
Other Improvements
We have allowed for basic site development such as
Driveway: Shared concrete or asphalt access and driveway
Fencing: Timber
Paths: Paved
Landscaping: Lawns sown and gardens
Other: Paved patio
Presentation and Condition
We have not undertaken a structural survey and we are not qualified to comment on such matters.
Accordingly, it would be prudent to obtain a report from a suitably qualified person if there are any concerns
regarding the structural integrity of the dwelling. We advise that our valuation has been carried out on the
basis that there will be no major defects. We point out that we do not have a LIM report and we are not able
to make comment as to whether all buildings will have Building Permits and Code of Compliances.
Essential Repairs
N/A
Construction Costs (As if Complete)
N/A
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
87. Risk Assessment
The Risk Matrix provides a graphical overview of several of the factors considered when undertaking this
valuation. This profile looks at eight factors, four of which are property specific and four which look at the
market. Each category is assessed as to how it affects the subject property’s value or marketability.
Lower risk rakings indicate the property should perform well, whilst higher ratings indicate areas which may
need further consideration by the client or lender.
Property Risk Ratings Low L/M Medium M/H High
Location & Neighbourhood
Land (including Planning & Title)
Environmental Issues
Improvements
Market Risk Ratings Low L/M Medium M/H High
Recent Market Direction (price)
Market Volatility
Local Economy Impact
Market Segment Conditions
PROPERTY RISKS
Location & Neighbourhood – Reflects an overall rating for these two aspects. Refers to the quality of the
neighbourhood combined with the location with respect to amenities and facilities.
Land (including Planning & Title) – Land refers not only to the land physically but also to access, services,
planning and title. This is measured relative to the market the subject property is in. Our valuation is made on
the basis that the subject property complies.
Environmental Issues – This covers a range of environmental issues including any significant, observable, visual
and/or known defects, hazards or site contamination. This is measured relative to the market the subject
property is in. Our valuation is made on the basis that the subject land is not contaminated, unless otherwise
stated in this report.
Improvements – Refers to all improvements, whether the main building or ancillary improvements (and for a
proposed dwelling, extensions or renovations and would include concerns about aspects of the project or
tender).
MARKET RISKS
Recent Market Direction (price) – The risk of a reduced value in the next six to twelve months.
Market Volatility – The risk of significant adverse impact on the value of the subject property of the market
changing direction rapidly. Refers to the relevant market segment.
Local Economy Impact – The extent to which a significant change in the local economy is impacting adversely
and/or the risk that it may impact adversely on the value of the subject property. Refers to the economy
(population, employment and services) within the locality of the subject property.
Market Segment Conditions – The extent to which the condition of the market in this particular market segment
is impacting or may impact adversely on the subject property.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
9The Risk Assessment within this report is our opinion of the property as at the date of valuation. This opinion
has been based on factors such as our research data and knowledge of the property market, and reflects the
nature and standard of the property, inherent characteristics and current market conditions. The Risk
Assessment forms part of the full valuation report and must not be relied upon in isolation.
8. Market Commentary
The Hamilton residential market during 2019 was relatively steady with properties taking slightly less time to
sell and the number of sales per month has remained increased and the dwelling median price has increased
by 11.5% from November 2018. REINZ statistics for Hamilton City show for the November 2018 period, the
dwelling median sale price was $556,000, with 322 properties sold per month and median days to sell being
36. The REINZ statistics for November 2019 show the median sale price has risen to $620,000 (although it did
fluctuate during the year), with 358 properties sold and the median number of days to sell has decreased to 35
days.
REINZ statistics show the national median house price in November 2019 is at a new record high of $630,000
an 8.6% increase from $580,000 in November 2018. Auckland’s median house price increased by 2.9% to
$885,000, up from $860,000 year-on-year. The number of properties sold in November across New Zealand
decreased by -1.9% when compared to a year ago with 7,405 properties sold in comparison to 7,550 in
November 2018. The median number of days to sell a property nationally decreased by 2 days from 35 days in
November 2018 to 33 days in November 2019. Auckland saw the median number of days to sell a property fall
from 37 days to 35 days year-on-year. The number of properties available for sale nationally decreased by -
19.4% (to 22,046 down from 27,361) a decrease of 5,312 properties compared to 12 months ago. Bindi
Norwell, the Chief Executive at REINZ says: “November was a very strong month price wise, with record median
prices seen in 10 regions and a record equal in Manawatu/Wanganui. This is the highest number of regional
records we’ve seen in a single month since March 2005. Additionally, the country saw a new national record
median price of $630,000 and 24 territorial authorities around the country saw record median prices including
Whangarei District, Auckland City, Tauranga City, Napier City, Kapiti Coast District, Lower & Upper Hutt Cities,
Nelson City, Christchurch City, Dunedin City and Invercargill City. The Auckland market has seen prices increase
for three months in a row, suggesting that we’re now entering a new normal for the country’s biggest real
estate market where the increasing levels of confidence in the property market coupled with low interest rates
and a lack of choice of new listings means that people are prepared to pay more for properties than they were
a few months ago. The median price for Auckland represents a $22,000 increase since last month and is the
highest price in 32 months”, continues Norwell.
The Reserve Bank reduced the Official Cash Rate (OCR) to 1 percent on 07 August 2019, stating the Monetary
Policy Committee agreed that a lower OCR is necessary to continue to meet its employment and inflation
objectives. Employment is around its maximum sustainable level, while inflation remains within our target
range but below the 2 percent mid-point. Recent data recording improved employment and wage growth is
welcome. GDP growth has slowed over the past year and growth headwinds are rising. In the absence of
additional monetary stimulus, employment and inflation would likely ease relative to our targets. Global
economic activity continues to weaken, easing demand for New Zealand’s goods and services. Heightened
uncertainty and declining international trade have contributed to lower trading-partner growth. Central banks
are easing monetary policy to support their economies. Global long-term interest rates have declined to
historically low levels, consistent with low expected inflation and growth rates into the future. In New Zealand,
low interest rates and increased government spending will support a pick-up in demand over the coming year.
Business investment is expected to rise given low interest rates and some ongoing capacity constraints.
Increased construction activity also contributes to the pick-up in demand.
Hamilton Real Estate Agents have indicated a steady amount of buyer enquiry; however, the market is still
experiencing a shortage of new listings which is keeping the market relatively buoyant. There is steady market
demand for good quality well-presented properties at the higher end of the market and a renewed interest in
the under $550,000 price bracket as first-time home buyers come into the market with the Reserve Bank
undertaking a modest easing of the Loan to Value Ratios effective from 01 January 2019.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
109. Valuation Methodology
To establish the Market Value for the property we have adopted the sales comparison approach. This approach
compares a subject property’s characteristics with those of comparable properties recently sold in similar
transactions. The process uses one of several techniques to adjust the prices of the comparable transactions
according to the presence, absence, or degree of characteristics which influence value. This approach relies on
the assumption that a matrix of attributes or significant features of a property such as floor area, number of
bedrooms and bathrooms, age of the property and condition of property, lot size, location and views, drive its
value. The sales comparison approach is based upon the principles of supply and demand, as well as upon the
principle of substitution. Supply and demand indicates value through typical market behaviour of both buyers
and sellers. Substitution indicates that a purchaser would not purchase an improved property for any value
higher than it could be replaced for on a site with equivalent utility, assuming no undue delays in construction.
Below are a number of recent sales of particular interest:
Comparable Sales Evidence
Vacant Land
Sale No. 1 129 Probert Crescent, Chartwell – Sold November 2019 for $282,500
This is a vacant residential site having a total area of 358m2. It is a rectangle shaped,
front site with a flat contour in the Greenhill development in Chartwell. This equates to
a land rate of $789/m2.
Sale No. 2 16 Te Tiireke Drive, Glenview – Sold November 2019 for $300,000
This is a vacant residential site having a total area of 402m 2. It is a rectangle shaped,
front site with a flat contour in a residential subdivision off Dixon Road. This equates to
a land rate of $746/m2.
Sale No. 3 2 Dixon Road, Fitzroy – Sold November 2019 for $300,000
This is a vacant residential site having a total area of 454m2. It is a rectangle shaped,
front site with a flat contour in a residential subdivision off Dixon Road. This equates to
a land rate of $661/m2.
Sale No. 4 14 Dixon Road, Fitzroy – Sold November 2019 for $300,000
This is a vacant residential site having a total area of 457m2. It is a rectangle shaped,
front site with a flat contour in a residential subdivision off Dixon Road. This equates to
a land rate of $656/m2.
Sale No. 5 4 Heke Lane, Glenview – Sold December 2019 for $362,250
This is a vacant residential site having a total area of 468m2. It is a rectangle shaped, rear
site with a flat contour in a residential subdivision off Dixon Road. This equates to a land
rate of $774/m2.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
11Improved Sales
Sale No. 1 75B Campbell Street, Frankton – Sold October 2019 for $655,000
This property comprises a 2019 two-storey duplex townhouse, having with
a total floor area of 168m2 including an internal access double garage, four
bedrooms, two bathrooms and open plan living area with heat pump.
Construction comprises brick and fibrocement board cladding with a
galvanised steel roof. It is located on a rear site of 254m2 and other
improvements include a shared concrete driveway, timber deck and basic
landscaping.
Sale No. 2 6/18 Mahoe Street, Melville – Sold February 2020 for $659,000
This property has sold from plans and is unconditional, subject only to code
of compliance and issue of new title. It will comprise a brand new two-
storey duplex townhouse, having with a total floor area of 161m2 including
an internal access double garage, three bedrooms, two bathrooms and
open plan living area with heat pump. Construction will comprise brick and
fibrocement board cladding with a galvanised steel roof. It is located on a
rear site of 250m2 and other improvements include a shared concrete
driveway, patio and lawns.
Sale No. 3 5/18 Mahoe Street, Melville – Sold February 2020 for $659,000
This property has sold from plans and is unconditional, subject only to code
of compliance and issue of new title. It will comprise a brand new two-
storey duplex townhouse, having with a total floor area of 161m2 including
an internal access double garage, three bedrooms, two bathrooms and
open plan living area with heat pump. Construction will comprise brick and
fibrocement board cladding with a galvanised steel roof. It is located on a
rear site of 248m2 and other improvements include a shared concrete
driveway, patio and lawns.
Sale No. 4 6/98 Dinsdale Road, Dinsdale – Sold December 2019 for $675,000
This property comprises a 2019, two-storey duplex townhouse, with a total
floor area of 158m2 including an internal access double garage, four
bedrooms, two bathrooms, open plan living area with heat pump.
Construction comprises concrete brick and fibrocement board cladding
with a galvanised steel roof. It is located on a rear site of 232m2 and other
improvements include a shared driveway, timber deck with louvres and
basic landscaping.
Sale No. 5 2/106 Comries Road, Chartwell – Sold December 2019 for $683,000
This property comprises a brand new two-storey, three bedroom, two
bathroom townhouse with a total floor area of 133m2 including an internal
access single garage and open plan living area with heat pump.
Construction comprises concrete brick and galvanised steel cladding with
a galvanised steel roof. It is located on a rear a 4-Lot development
overlooking a local park. Other improvements include a shared concrete
driveway, timber deck/balcony and lawns.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
12Summary of Sales Evidence
The above market evidence is summarised in the following table:
Sale
Address Price Dwelling Land Bedrooms Bathrooms Sale Comments
Area
$ Size m2 m2 Date
75B Campbell St 655,000 168 254 4 2 1-Oct-19 Inferior
6/18 Mahoe St 659,000 161 250 3 2 1-Feb-20 Comparable
5/18 Mahoe St 659,000 161 248 3 2 10-Feb-20 Comparable
6/98 Dinsdale Rd 675,000 158 232 4 2 2-Dec-19 Comparable
2/106 Comries Rd 683,000 133 214 3 2 1-Dec-19 Comparable
Lot 15 675,000 129 257 3 2
Lots 16 to 22 665,000 129 231 3 2
We have considered recent sales of similar type duplex townhouses within the locality and the wider Hamilton
market. Of the above market evidence, on a straight comparison basis, we consider sale #5 to be the most
comparable in terms of the level of improvements.
Sale #1 has a larger but inferior quality townhouse and is considered to be in an inferior location, Sales #2 & 3
have sold from plans and have just gone unconditional, having a larger floor area and a similar quality
townhouse but are considered to be in a slightly inferior location, Sale #4 has a larger size townhouse with four
bedrooms and a similar land area but considered to be in a slightly inferior location and Sale #5 has a similar
size and quality townhouse but is considered to be in an arguably superior location.
The sales give a range of between $655,000 and $683,000. We consider the subject Lot 15 to have a value ‘as
if complete’ of $675,000 (having road frontage and larger land area) and Lots 16 to 22 to have a value ‘as if
complete’ of $665,000, after adjusting for the age, quality and size of the dwellings, their land area, outlook
and location, being in the mid-level of this range. We are also mindful of properties currently on the market
within the locality or being offered as house & land packages. The market evidence supports this assessment.
Previous Sales (Within last 3 Years)
N/A
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
1310.Valuation
Lot 15:
We assess the ‘As If Complete’ Market Value of Lot 15 at $675,000 (Six Hundred and Seventy Five Thousand
Dollars), detailed as follows:
Improvements
Dwelling 129m2 $ 330,000
Other Improvements Driveway, fencing, patio and site
Development etc $ 10,000
Total Value of Improvements $ 340,000
Land Value 257m2 $ 320,000
Total Value Excluding Chattels $ 660,000
Chattels Fixed floor coverings, window treatments, light fittings,
Heat pump and & kitchen appliances etc $ 15,000
TOTAL VALUE $ 675,000
This valuation is inclusive of GST (if any).
Lots 16 to 22:
We assess the ‘As If Complete’ Market Value of each of these Lots at $665,000 (Six Hundred and Sixty Five
Thousand Dollars), detailed as follows:
Improvements
Dwelling 129m2 $ 330,000
Other Improvements Driveway, fencing, patio and site
Development etc $ 10,000
Total Value of Improvements $ 340,000
Land Value 231m2 $ 310,000
Total Value Excluding Chattels $ 650,000
Chattels Fixed floor coverings, window treatments, light fittings,
Heat pump and & kitchen appliances etc $ 15,000
TOTAL VALUE $ 665,000
This valuation is inclusive of GST (if any).
Reasonable Selling Period
Having regard to REINZ sale statistics and in particular the average days to sell, in our opinion a reasonable
selling period for this property would be 35 days.
Purchase Price or Offer
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
14N/A
11.Special Assumptions
Completion Conditions
Our valuation of this development is based on the plans and descriptions supplied to us. Any significant
deviation in respect of style, layout, design or construction standards could invalidate the value conclusions
reached in this report. The values reported herein are based on data collected and reviewed as at the date of
this report. The Valuer assumes no responsibility for unforeseeable events that alter market conditions prior
to the completion of the development. Furthermore, this valuation is subject to the following conditions:
• The issue of a new title for each townhouse
• The completion of the duplex townhouses in accordance with the plans supplied, and the descriptions
contained within this report
• The connection of the townhouses to all normal services
• The issue of a Code of Compliance by the Hamilton City Council
• The provision of site development as detailed within this report
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
1512.Disclaimer
Market Value
The International Valuation Standards 2020 defines ‘Market Value’ as:
“The estimated amount for which an asset or liability should exchange on the valuation date between a willing
buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each
acted knowledgeably, prudently and without compulsion”. The ‘asset’ for this valuation engagement is
residential or lifestyle property including land and/or buildings.
This valuation has been prepared on the basis of a willing seller / willing buyer concept, with reference to
comparable sales evidence. It reflects, in our opinion, the current market value as at the date of the property
inspection. The valuation may not reflect the situation that could occur should the property be sold under
forced sale conditions.
This valuation may change significantly and unexpectedly as a result of general market movements and varying
market conditions and/or factors specific to the property such as the physical state of the property and we do
not accept any liability for such losses arising from any such changes in value.
Highest and Best Use
This valuation has been undertaken on the basis of the ‘Highest and Best Use’ of the property.
International Valuation Standards describe “Highest and Best Use” as being:
“The most probable use of a property which is physically possible, appropriately justified, legally permissible,
financially feasible and which results in the highest value of the property being valued”.
Purpose of the Valuation
This valuation has been completed for the specific purpose stated in this report. No responsibility is accepted
in the event that this report is used for any other purpose.
Scope of Work
A scope of work (sometimes referred to as terms of engagement) describes the fundamental terms of a
valuation engagement, such as the asset(s) being valued, the purpose of the valuation and the responsibilities
of parties involved in the valuation. Some aspects of the scope of work may be addressed in documents such
as standing engagement instructions, master services agreements or a company’s internal policies and
procedures. A scope of work has been provided by way of the Standing Instructions or email to the client.
Mortgage Recommendation
The subject property is suitable for first mortgage lending subject to the risks identified within this report. [The
Australia New Zealand Valuation Guidance Note 2, 3.0 Report Content, 3.1 Recommendation which states:
"Unless specifically requested by a lender, a recommendation should not be made as to the suitability of the
asset as a security as this is a commercial decision of the lender, which may involve other factors. It is however
appropriate to comment on asset-specific and market factors impacting adversely on the asset (see Risk
Analysis), as well as positive aspects. Unless required by State or Federal legislation or, in the case of New
Zealand, legislation such as the Trustee Act 1956 and amendments, the Lawyers and Conveyancers Act
(Lawyers: Nominee Company) Rules 2008, or the Securities Act (Contributory Mortgages) Regulations 1988 or
any lender whom the Member is aware is acting in the capacity as a Trustee it is not generally appropriate for
the Member to recommend a maximum or minimum loan percentage or amount or recommend a loan
period."]
Qualification
We confirm that this valuation has been prepared by Registered Valuer, who has all the appropriate experience
and qualifications necessary to undertake this valuation and holds a current Annual Practicing Certificate.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
16Professional Indemnity Insurance
We certify that Real Property Matters Ltd holds current professional indemnity insurance in accordance with
the Property Institute of New Zealand.
Currency
All figures are shown in New Zealand Dollars (NZ$).
Client
This report has been prepared solely for the use of the client named in this report. We disclaim all responsibility
and will accept no liability to any other party. Any person, other than the client to whom this report is
addressed, who uses or relies on this valuation does so at their own risk.
Extent of Investigation
This report is for valuation purposes only and should not be regarded as a structural survey of the
improvements nor a survey of the land.
If you intend to purchase the property or lend money secured on it, we recommend that you instruct a suitably
qualified professional to survey the property for defects before you proceed further.
Whilst in the course of inspection, although all due care is taken to note any obvious building and/or other
improvement defects, no structural survey has been made. As a consequence, this report has been prepared
on the assumption that, except where specifically noted within this report:
• The buildings and/or other improvements have been competently designed and built and are structurally
sound. This extends specifically to external water, liquid or moisture or protection from external water,
liquid or moisture entering the building or structure or any materials or components thereof, or effects
thereto.
• The buildings and/or other improvements do not contain any latent or patent defects such as chemicals,
fungus, mould, mildew, yeast, rot or decay, gradual deterioration, micro-organisms, bacteria, protozoa or
any similar like forms or any spore, toxin vapour, gas or other emission or organic or inorganic body or
substance created, produced by or emanating from such, which could result in:
o the building and/or other improvements ceasing to be watertight or habitable
o gradual decay of the building and/or other improvements including the buildings structure
• The building and/or other improvements comply with the Building Act 2004, the Resource Management
Act 1991 and the Building Codes contained in the First Schedule of The Building Regulations 1992 (or any
amendment or substitution of that Code) and any other relevant legislation and territorial authority
requirements, including consents and certificates (including Code of Compliance Certificates). We can
give no undertakings and disclaim responsibility for the failure of any building or structure to comply with
the requirements of the above legislation or to meet the level of performance, quality, fitness or durability
of their intended purposes. This valuation assumes that a territorial authority Land Information
Memorandum / Project Information Memorandum would not reveal any non-complying features. We
can give no guarantees as to outstanding requisitions in respect of the subject property.
The valuation has been prepared on the basis that the property and all buildings comply with the Local
Authority’s minimum requirements and should for any reason this not be the case then this valuation is
conditional upon compliance by the Owner.
We have inspected readily accessible places and it was not possible to inspect the unexposed and inaccessible
structural components, therefore, we are unable to report on the condition of these. We have not inspected
services such as electrical wiring and plumbing and this report does not warrant the condition of any services.
It has been assumed that all services including (where applicable) that any lifts, hot and cold water systems,
electrical systems, ventilating systems, air conditioning and other devices, fittings, installations or conveniences
that are contained within the building and/or on the property are in a proper working order and are functioning
for the purpose for which they were designed, and conform to the current building, fire and government
regulations and codes. No guarantee is given in respect of rot, termite, pest infection, or other hidden defects.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
17Building Measurements
Where floor areas of buildings are stated in this report, these are approximate only.
Site & Environmental Contamination
Substances such as asbestos, other chemicals, toxic waste, or other potentially hazardous materials, could, if
present, adversely affect the value of the property. Unless otherwise stated in this report, the extent of
hazardous substances which may or may not be present on or in the property, was not considered by the Valuer
in the conclusion of value. The stated value estimate is on the assumption that there is no material on or in the
property that would cause loss in value. No responsibility is assumed for any such conditions and the recipient
of this report is advised the Valuer is not qualified to detect such substances, quantify the impact on values, or
estimate the remedial cost.
Information
Information has generally been obtained from a search of records based on government department or
statutory authority records. Where information has been supplied by other parties, this information is believed
to be reliable and accurate can accept no responsibility if this should prove not to be so, and we reserve the
right to review the valuation if any erroneous information has been provided or if any previously withheld
information becomes known to us.
Where certificates of title or leases have not been seen we reserve the right to reconsider the valuation should
the documents indicate matters that may materially affect the value of the property. This valuation has also
been prepared on the understanding that no easements, rights of way or encroachments exist by or on the
subject property other than those set out in the Title details or detailed herein.
It is assumed that all rents referred to in this report are being paid in full and when due and payable under the
terms and conditions of the relevant leases. Further, it is assumed that all rents referred to in this report
represent the rental arrangement stipulated in the relevant leases, to the extent that such rents have not been
prepaid, abated or inflated to reflect extraordinary circumstances.
Where the property is Strata Titles, we have assumed that there are no claims, orders or resolutions which may
result in an extraordinary levy being charged to the Strata Title holder.
Nature and Source of the Information Relied Upon
Information has been sourced from:
• Land Information New Zealand
• Property Guru
• REINZ Statistical Data
• Local Authority District Plan
New Buildings & Improvements
Where the valuation includes added value for buildings or other improvements yet to be completed, such added
value is subject to development complying with all local authority and other Government requirements and
assumes that all Building Consents, Code Compliance Schedules, or other regulatory building matters are
complied with, and that all work is completed to a good tradesman like standard, and in the manner, form, and
with the materials advised to us.
Where the added value of such proposed buildings or improvements is relied on by any Lender for mortgage
lending purposes, loan funds should only be advanced on approved Valuation Progress Payment Certificates as
development progresses.
Furthermore, the valuation report is based on the assumption that the building work and site improvements
will be developed and completed according to the plans and specifications described in the report and that the
standard of construction / development is in accordance with that assumed within the report. A final inspection
is required by the Valuer on completion to confirm or vary the valuation figure as any significant deviation in
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
18respect of style, layout, design or construction standards may invalidate the value conclusions reached in the
report. The Valuer assumes no responsibility for unforeseeable events that alter market conditions prior to the
completion of the development.
Subdivision
Where the valuation has been prepared based on a Subdivision Plan provided, and values given to proposed
individual allotments, such values are subject to approval of the Subdivision Plan provided by the appropriate
Local Authority, compliance with all Conditions of such approval and issue of separate Certificates of Title for
each allotment. Where the issue of separate Titles has not occurred and the property is valued as a single entity,
this would require deductions from the Gross Realisation for such items as costs of sale, holding costs,
development costs, profit and risk, etc, and would produce a lesser value than the aggregate of all the individual
allotment values.
Where the Subdivision Plan provided to us is not approved by the appropriate Local Authority, or is approved
in an amended form, then we reserve the right to reassess our valuation.
Site Survey
We have made no survey or the property and its boundaries and assume no responsibility in connection with
such matters. Unless otherwise stated it is assumed that all improvements lie within the title boundaries, the
land is stable and free of undue flood risk. Any sketch, plan or map in this report is included to assist the reader
in visualising the property and should not be relied upon as being definitive.
This report does not purport to be a geotechnical report, and unless otherwise stated our valuation and report
is conditional upon the land being free of contamination, soil instability or industrial waste problems.
Methamphetamine and/or other drugs and/or other similar hazardous contamination
Our valuation assumes that the subject property does not have and/or has not previously had any
contamination whatsoever from Methamphetamine and/or other drugs and/or other similar hazardous
substances. We do not undertake any investigation into the past and/or present uses of either the subject
property or any adjoining or nearby land/property to establish whether there is any potential for contamination
from Methamphetamine and/or other drugs and/or other similar hazardous substances.
We have therefore prepared this valuation on the assumption that the subject property does not have and/or
has not previously had any contamination whatsoever from Methamphetamine and/or other drugs and/or
other similar hazardous substances. Should you have any concerns around the issue of whether the subject
property may have (or have had) contamination from Methamphetamine and/or other drugs and/or other
similar hazardous substances, you should seek the appropriate independent advice from professionals
specialising in such areas. In the event that the subject property is deemed to have (or have had) any
contamination whatsoever from Methamphetamine and/or other drugs and/or other similar hazardous
substances, our valuation is not to be relied upon as contamination from Methamphetamine and/or other
drugs and/or other similar hazardous substances may affect the value of the subject property.
Restrictions on Use, Distribution or Publication
The report is not to be relied upon by any other person or for any other purpose other than those parties
identified under Client. We accept no liability to third parties, nor do we contemplate that this report will be
relied upon by third parties. We invite other parties who may come into possession of this report to seek our
written consent to them relying on this report. We reserve the right to withhold our consent or to review the
contents of this report in the event that our consent is sought. This valuation can only be relied on for up to
90 days or less from the date of inspection and that any liability where the valuation is relied upon after that
time period is excluded.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
19Valuation Standards
This valuation has been prepared with conformity to the International Valuation Standards 2020 (IVS effective
31 January 2020) as well as the Australia and New Zealand Valuation and Property Standards.
International Valuation Standards – Compliance Statement
This valuation has been performed in accordance with the ethical and professional requirements of the
International Valuation Standards Code of Conduct, and we confirm the following:
1. Statements of fact presented in this report are correct to the best of the signatory Valuer’s knowledge.
2. Analyses and conclusions contained in this report are limited only by any stated assumptions and conditions.
3. The signatory Valuer has no interest in the subject property.
4. The valuation fee charged is not contingent upon any aspect of this report.
5. The valuation was performed in accordance with the applicable ethical code and performance standards.
6. The signatory Valuer is fully Registered and holds the required professional education qualifications and has
valuation expertise relating to this type of property in this location.
7. The signatory Valuer has physically inspected the subject property and no one except any persons specified in
the report has provided professional assistance in its preparation.
Dawn Harpur has no direct or indirect interest in this property and is not aware of any conflicts of interest and
has no relationship with the Owner, Vendor, Purchaser or Agents.
Residential Valuation Standing Instructions
This valuation has been prepared in accordance with the Residential Valuation Standing Instructions Version
1.3.
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
2013.Appendix A – Historic Titles (for existing un-subdivided land parcels)
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
21Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
22Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
23Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
24Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
25Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
26Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
2714.Appendix B – Site Plan, Floor Plans & Elevations
Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
28Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
29Residential Property
(Lots 15-22), 58-60 Queens Avenue, Hamilton
10 February 2020
30You can also read
