A School Building Located in County Mayo. The School was Built in the 1930s: Auctioneering and Property Services Assignment, UCC,

Part 1

The Learner should value the property described below, using the Contractor’s method and analyze the method, by answering the questions below.

The property in question is:

• A school building located in County Mayo. The school was built in the 1930s and is in a poor state of repair. The building is situated on 4.75 acres. Local land values are reaching €11,540 per acre. The gross floor area of the school is 134m2 and estimated building costs are currently €1,470 per square meter. Allow for depreciation of 8% and obsolescence of 7%.

A. (i) Calculate the value of the property described above.

(ii) Explain why the Contractor’s method is used infrequently.

B. Suggest another type of property that is suitable for the valuation using the Contractor’s Method and provide an estimate of buildings cost for such a property. This estimate should from a reputable source (provide the source).

C. “cost and value are rarely the same, but this method of valuation is based loosely on the assumption that they are related” Millington. Briefly discuss the relevance of this statement with respect to the Contractor’s method.

Part 2

A. Given the information below (for G&A Stores), calculate the premium due, and explain why a Premium payment can be of benefit to the leaseholder and the landlord.

G&A stores have been granted a new lease of 7 years. The FRV of this premises is €121,000 pa, but they have agreed to pay €92,000 pa in return for the payment of a premium. Similar properties are yielding 6%.

B. A property yield can assist the investor in decision making. Write a short note on the role yields play in this process.

C. Considering the scenario outlined below, advise your client by estimating the rental value for 17 Talbot Place (Zoning Method).

Your client has approached you as they are interested in renting space at 17 Talbot Place. They have instructed you to estimate the market rental value for 17 Talbot Place. The premises have a frontage of 7M and a depth of 30M. The nearest comparable you can find is 7 Crane Street, which is located nearby. This retail unit has a frontage of 5M and a depth of 22 M. It produces a rent of €75,000 per annum which was agreed recently.

Part 3

A. (i) Explain what Capital Gains Tax (CGT) is and state who has to pay it.

(ii) Using secondary research, outline the exemptions that apply to CGT.

B. (i) Explain what Local Property Tax (LPT) is and state who has to pay it.

(ii) Using secondary research, outline the exemptions that apply to LPT.