Reasons for valuation
Most valuation assignments are for financing purposes, wherein the property owner ( or buyer ) applies for a bank loan and offers to charge the asset to the bank as security to the loan. However, valuers may be appointed for other, more challenging reasons that often require additional skills and experience.
Some of the reason include :-
- Funding - In consideration of granting an individual or company a loan or banking facility, the lending bank normally required ' adequate security ' from the borrower in the form of a property asset that it can foreclose and sell by auction in the even the borrower fails to repay the loan sum an interest. The bank normally require the property to be assessed by a professional valuer on its panel prior to granting the loan or banking facility, to make sure the security offered is worth more than the loan sum sought.
- Sale of property - Both a buyer and seller may want a professional opinion of property's market value before entering into negotiations. This is to ensure that the seller does not over-price the property, or that the purchaser does not under pay for it.
- Tracking property values - Some clients, especially the wealthy, may want to know their real nett-worth and for estate planning and strategic purposes, may want a periodic valuation of their assets.
- Stamp duties - When properties change hands, the Federal Government levies a tax known as Stamp Duty, payable by the purchaser or transferee based on the market value of the transacted property. Purchasers would require the transacted property to be valued in order to determine the market value for stamp duty payment.
- Family law settlements - In the even of divorce, incapacity, or death an to facilitate the equitable distribution of property assets, the affected spouse or beneficiary, or even the court ( if a legal tussle is involved ) would require the assets to be valued.
- Foreclosure - When a bank exercises its right to foreclose on a property in the event of default by the borrower, it would require the asset to be revalued to determine the ' reserve price ' prior to its sale by public auction.
- Land Acquisition - When the Land Administrator exercises its power to acquire private property under the Land Acquisition Act, the owner and tenant of such property may need to appoint a registered valuer to evaluate the amount of compensation damages they can claim from the administrator.
Market value is the focus of a real property valuation exercise, where valuers are engaged to estimate the Worth of the asset in question.
In its simplest form, valuation may be describe as ' the analytical process followed by the valuer', or even an experienced investor considering property for investment, to occupy or for speculation.
This process includes:
- Defining the particular property to be valued
- Identifying the particular right or interest to be valued, for example the freehold interest or the sub-lessee's interest; or the compensation business or property owners would claim in the even of their properties are compulsorily acquired
- Date of the valuation - this is especially crucial in land acquisition proceeding, since valuation will be based on the date the notice to acquire is published, in accordance with the provisions of the Land Acquisition Act 1960, and not necessarily when the title transferred or when physical possession of the acquired land is taken. This date is important in the even of litigation that can last many years, during which the value of the property can appreciate or depreciate.
- The purpose and objective for the valuation. In most cases, it is to determine the ' market value ' but valuation may also be carried out to determine the property's insurance value, its value to a business or the value to a purchaser with special interest.
- The appropriate method of valuation most suitable for the type of asset to be valued. This must be in keeping with the objective of the exercise.
- Limiting conditions, if any, which must be stated in the valuation report.
Once upon a time, there was a king. The king liked one of his followers very much because he was very wise and always gave very useful advice. Therefore the king took him along wherever he went.
One day, the king was bitten by a dog, the finger was injured and the wound was getting worse. He asked the follower if that was a bad sign. The follower said, ' Good or bad, hard to say '. In the end, the finger of the king too bad that it to be cut. The king asked the follower again if that was a bad sign. Again, the follower gave the same answer, ' Good or bad, hard to say '. The king became very angry and sent the follower to prison.
One day, the king went hunting in the jungle. He got excited when he was on the chase of a deer. Deeper and deeper he went inside the jungle. In the end he found himself lost in the jungle. To make things worse, he got captured by the native people who lived inside the jungle. They wanted to sacrifice him to their god. But when they noticed that the king had one finger short, they released him immediately as he was not a perfect man anymore and not suitable for sacrifice. The king managed to get back to his place after all. And he finally understood the follower's wise quote, ' Good or bad, hard to say'. If he hand't lost one finger, he could have been killed by the native people. He ordered to release the follower, and apologized to him.
But the king's amazement, the follower was not mad at him at all. Instead, the follower said,' It wasn't a bad thing that you locked me up. ' Why? Because if the king hand't locked the follower up, he would brought the follower along to the jungle. If the native found that the king was not suitable, they would have used the follower. Again, the quote ' Good or bad, hard to say ' stands.
>>> The moral of the story is that everything that happened in this world, there is no absolute good or bad. Sometimes good things turned out to be bad things eventually, while the bad things become a gain. Whatever good things that happen to us, enjoy it, but don't have to hold too tight to it, treat it as a surprise in your life.
Whatever bad things that happen to us, don't have to feel too sad or despair, in the end, it might not be a total bad thing after all. If one can understand this, he or she will find life much easier to live with each day...
Anything that happens there is a reason for it, but sometimes we are not in the situation to understand it as yet.
THE Book of Lists famously ranked public speaking as the number one fear, above disease, money, flying and, most curiously, death!
But why is public speaking so intimidating?
One theory is that it’s all down to evolution: for most of our history, we have lived in small nomadic groups – so if we make fools of ourselves, the chances of being able to reproduce are dramatically reduced. There’s nowhere to run and hide if you are living in a tribe. Therefore, we have evolved the fear of public ridicule as a defence mechanism to protect our genes.
So, how can we overcome this fear?
First, we have to try to perceive the fear for what it is: an outdated survival instinct. Nowadays, we no longer live in small tribes, so the absolute worst thing that can happen if you embarrass yourself in front of others is that you feel a bit silly. This might not be much consolation but it does help put things in perspective.
Ask yourself, ‘’What’s the worst thing that can happen if this doesn’t go well?’’
A more practical solution is to ensure that you are well prepared with a clear structure to your presentation.
A good way of doing this is to follow the “Power of Three’’ principle. Things are easy to remember in threes: Small, Medium, Large; Red, Yellow, Green; Internationalism, Integrity, Individuality. If you reduce your presentation to three key points, then you will find it a lot easier to hold your train of thought under pressure. It will also help prevent boring your audience.
Another tip for structuring the talk is to use small cue cards.
You arrange the points you want to make in the order you want to say them on cards that fit easily into the palm of your hand. Make sure you number them in case they get mixed up. This will help you to maintain fluency. Fluent speakers appear confident and in control. And when you appear confident, soon enough, you will start to feel confident.
Presenting is a complex skill, just like gymnastics. Nobody would think of doing a gymnastic performance without practising. Similarly, you do not want to go into a presentation without running through it a few times.
You can do this with or without a test audience. If they are people you know and feel comfortable with, this will help boost your confidence.
Doing something several times makes it familiar and less intimidating.
Everybody likes to be liked, and nobody likes to be bored. Therefore, it is crucial to the success of your show that you do not send the audience off to dreamland.
An absolute golden rule here is to make sure that you never, ever simply read from your slides.
If your audience are over the age of five or so, they know how to read. So don’t read the slides. Keep the words in your mouth and on your cue cards. Use a maximum of six key words on each slide if you must use slides at all.
The second point here is to make sure that your audience are learning something. Tell them something new – just as I did at the beginning of this article, when I told you that public speaking is the number one fear.
Your audience will like you if they find you interesting, and you will pick up on that, which, in turn, will make you a more confident presenter ... Thanks, everyone. Any questions?
First, they go through your garbage and retrieve old bank statements. Then they call you, posing as an official from your bank, and ferret out your personal details. Before you know it, your identity has been poached.
Welcome to the world of identity theft.A recent study pointed out that one of the many things Malaysians feared the most was identity theft. The study in June by technology services and solutions company, Unisys, sampled a group of 890 people aged 18 to 64 in Peninsular Malaysia. Called the Unisys Security Index, it focused on four areas of concern — national security, financial security, Internet security and personal security.
While overall security worries among Malaysians stood at a moderate index of 174 out of a possible 300, certain specific areas were more troubling.Sixty-three per cent claimed to be extremely concerned about Malaysia’s national security in relation to war or terrorism, while 56 per cent said they were very worried about their personal safety.Just over half the people quizzed said they were afraid about their ability to meet essential financial obligations.However, the top two worries among the respondents were identity theft and credit card fraud. Seventy-five per cent polled claimed it to be their primary concern.
However, despite being worried about identity theft and credit card fraud, only 41 per cent of people actually exercise the most basic discipline of destroying their bank statements, bills and other items containing personal information before throwing them into the garbage. This is in contrast to the findings which show that most people are concerned about unauthorised access or misuse of their personal information and 34 per cent of people never read the privacy policies of banks, companies or government departments they had dealings with.Almost one-third of Malaysians used "easy to remember" numbers, like their birthdays, as PIN codes.
Malaysian identity theft victims spend an average of RM808 and 175 hours working to repair the damage to their credit profile.They also faced a range of credit-related problems when trying to cash cheques, obtain loans or even rent a house.Destroy sensitive documents before throwing them away and try to opt for electronic statements instead of hard-copy statements. Keeping personal mailbox locked is the first line of defence against financial fraud and identity theft. Have a personal mail held at the post office if you are going on holiday. Consumers should keep track of the date on which their mail arrived so that they would be aware if it was stolen. They should also check their account balances regularly, choose PIN numbers which cannot be easily guessed, keep updated credit reports on their personal history and always insist on identity verification from people seeking personal information
