Asset Management

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RE: Building Valuation - Methodology

  • 1.  RE: Building Valuation - Methodology

    Posted 6 days ago
    Edited by Sarah Di Mento 5 days ago
    Hello,

    Hope you all are doing well and safe.

    I am looking for a building valuation methodology that you use in your council to value the council's building assets as I am preparing a specification to organise building condition assessment & valuation where I prefer to use this similar methodology to value MVCC's Build Assets.

    Any kind of information would be greatly appreciated.

    Thank you in advance and I look forward to getting in touch.

    Kind Regards
    Siva
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  • 2.  RE: Building Valuation - Methodology

    Posted 4 days ago
    Hi Siva,

    AIFMM section 12.7 has the details you will need for methodology.  Basically, buildings (and/or building components, depending on how you record them) are a type of asset where Fair Value valuation needs to consider possible Level 1 and Level 2 inputs, for assets that could be held for investment, are 'non specialised', have possible market/income factors, etc.  AASB13 and AASB16 are relevant (and AIFMM references these).

    My council has just been through a buildings valuation and I would be happy to share the consultancy services specification with you directly.  For reference, our valuation included inspections that were general in nature across the network.  If your valuation requires a greater level of detail in the inspection, or the inspection reporting, you may also need to consider the practice note for building inspections in your services specification.

    Feel free to email me: jamie.milner@bayside.nsw.gov.au

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    Jamie Milner
    Bayside Council
    Coordinator Asset Systems
    Rockdale
    Australia
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  • 3.  RE: Building Valuation - Methodology

    Posted 4 days ago
    Hi Jamie,

    We would be interested to know whether council valued land at the same time and by the same valuers? We have found in the past many councils value  land and buildings at different times or using different resources and forget or ignore the economic relationship which exists between land and buildings. This may lead to inadvertently misrepresenting the highest and best use of the property when some other alternate higher and better use exists.

    We have come across a number of instances where a council's buildings (i.e. offices/chambers) are valued at significant sums but when the underlying land value  is taken into consideration, those building values reduce significantly, if  not altogether.

    No doubt the Rockdale Town Hall (heritage listed) and the Library land values are reducing the building values significantly as developments similar to the one opposite the Town Hall begin to take hold in the landscape.

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    Martin Burns [Designation]
    National Director : Property
    Liquid Pacific
    North Sydney
    [Phone]
    solutions@liquidpacific.com
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