AV1 – Syllabus

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  • AV1 – Syllabus

SUBJECT TITLE: APPLIED VALUATION I (PS 4003)

SUBJECT DESCRIPTION

The subject consists of the Introduction to Valuation Standards and the three sections: The first section deals with valuation for statutory purposes including valuation for taxation, wayleaves and easements, compulsory acquisition compensation, mortgage, auction and insurance. The second section comprises investment appraisal and development appraisal techniques of properties. The third section consists of the various tools for sensitivity and risk analysis on property development.

SYLLABUS CONTENT

  1. Introduction to Valuation Standards
    • Malaysian Valuation Standards
    • International Valuation Standards
    • RICS Valuation Standards
  2. Statutory Valuation
    • Valuation for Taxation Purposes
      • Rating, capital gains tax, stamp duty and conversion premiums.
    • Valuation for Mortgage, Auction and Insurance
    • Valuation for Wayleaves and Easements
    • Valuation for Compulsory Acquisition Compensation
      • Value of land taken, severance and injurious affection.
      • Trade disturbance, accommodation works and incidental claims.
      • The problem of betterment and worsenment.
  3. Investment Appraisal Techniques
    • Techniques used in the assessment for property investments.
    • Determination of Net Present Value (NPV) and Internal Rate of Return (IRR)
      • Discounted Cash Flow Appraisal.
      • Payback period and Loan disbursements.
    • Development Appraisal
      • The appraisal of development proposals in terms of viability and profitability.
      • Calculation of ground rents in profit sharing schemes.
    • Residual Approach
      • Cash Flow Approach.
      • Period by period.
      • Discounted cashflow.
  4. Sensitivity and Risk Analysis
    • Methods of adjusting for risk.
    • Sensitivity and probability analysis.
    • Multiple regression analysis.
    • Simulation techniques: Monte Carlo, decision trees, multiple regression analysis.
    • Method of forecasting.
  5. Valuation Software
    • The application of valuation software in the preparation of valuation jobs.