Residential
Residential properties refer to properties, all land, and structures, intended for private dwelling purposes, whether on a permanent or a temporary basis.
Residential freehold (stand-alone) properties.
Residential properties include flats, cluster housing, town house complexes, security estates, student residential units, etc. whether freehold, sectional titles or share block schemes. Values are usually determined making use of comparable sales analysis (market approach) using recent actual comparable property sales transactions.
Income Generating Properties
Commercial properties
Offices, office blocks and office parks, shopping centres, stand-alone shops, storage facilities, student residential blocks, and the likes. Other commercial properties of a more specialised nature include hospitals, hotels, guest houses, game lodges, private schools, filling stations, low cost- or subsidised housing schemes, etc.
In essence, the value of income generating properties are determined by the revenue-earning power of the property using the appropriate income valuation method. The accuracy of income-based valuations depends on the objective determination of the property’s annual income or cash flows, and a realistic, well researched and motivated capitalisation- or discount rate.
Manufacturing- and assembly properties
Manufacturing-, assembly-, repairs, and processing factories come in all shapes and sizes, different characteristics, and are usually tailored for specific uses and goals.
Rapid changes in production machinery, industrial technology, and building requirements, can render industrial buildings outdated and lose its value. This could lead to re-design, re-purposing and renovation or even demolishing and redevelopment.
Warehouses and Storage facilities
Warehouses store items, manage inventory, package goods, and facilitate shipments.
Storage facilities are static spaces concerned predominantly with keeping items safe.
Changes in IT management systems and logistics technology determines the requirement in e.g. height, loading facilities, turn space etc for warehousing.
Mixed-use properties
Mixed use can be described as the integration and combination of different land uses like commercial offices, retail, industrial warehousing, residential or other uses. It usually takes the form of vertically aligned uses that leverage off each other, although the different uses individually would be feasible in the market e.g. buildings with shops on street level and office space or residential units on the other floors. Although not the rule, the different uses can have different owners.
Farming properties
Farming properties encompasses a wide spectrum of different farming activities.
- Horticulture activities like grain, vegetables, flowers, fruit, nuts, etc. Typically, it pertains to commercial grain farming, vegetable production, orchards, vineyards, sugar cane, forestry, as well as specialised plant crops, tunnels, hydroponics, etc. It covers the spectrum of annual, biennial, and perennial plants.
- Livestock and poultry farming that includes cattle, sheep, goats, chicken, game.
- Various combinations of mixed farming.
Due to differences between farming properties,- activities and -business models, the valuation methods can differ between properties and activities. Land values are usually determined by comparable sales analysis while different perennial fruiting crops and plantations will be valued with cognisance of e.g. age, topography, yields, water rights, water availability, and the produce market. Possible pending- or real land claims, access to markets, produce types, mixed farming for e.g. risk reduction and sustained cash flows, etc. can also impact on market values. Livestock like cattle and game, will be valued separately – more akin to movable assets.
Development Land
Development land refers to land with development/re-development potential. When buying or investing in land, the investor considers and is motivated by the development potential of the land. Land may already be approved for development, zoned, and serviced. The valuer must evaluate the development potential of the land with due consideration of the planning conditions and the actual or expected development restrictions that will impact on the investment possibilities. Land values depends on inter alia, location, the planned or alternative development opportunities, development densities allowed, cost of services provision, and the likes.
Specialised Properties
This refers to properties that have very specific designs or characteristics for specific intended use, limiting demand in the property market. It would demand substantial expense to repurpose the property, if at all possible. It includes structures like sport facilities, churches, schools, theatres, etc. and includes properties where the buildings and the plant and machinery form a unit that serves a specific purpose and would require the building(s) to be damaged or even destroyed to dissemble the equipment.
Movable Assets
Includes office furniture and -equipment, plant equipment, motor vehicles, agricultural implements, -equipment and -mechanised assets to conduct business – including specialised motorised vehicles (yellow machines and -equipment). Value drivers includes, age, functionality, operating hours, distance covered, general condition, and market demand. It would also include typical residential furniture, appliances, private vehicles, etc.
Plant
Plant can be defined as the land, buildings, machinery, appliances, other gadgetry, and fixtures utilised in operating a trade or an industrial business. It can be a factory or workshop for the manufacture of a certain product but includes e.g. power plants, water treatment plants, etc. I.e. the total facilities available for production.
Expropriation
Expropriation is the act of government (on all tiers) claiming privately owned property to be used for the public benefit, subject to compensation. It is an administrative process usually prescribed by the authorising statute. Properties may be expropriated to build highways, railroads, powerlines, water pipelines, or other infrastructure projects.
Municipal rates & taxes
We assist owners of properties (all types) with the valuation of their properties as well as the lodging of objections and appeals in terms of the Municipal Property Rates Act (MPRA no 6 of 2004) and attend appeal board hearings to oppose municipal valuations that are unfair, incorrect and which leads to inaccurate and higher rates and taxes payable.
Various sources and property specialists agree that the mass appraisal techniques and tools used for municipal valuations are known for its errors and inaccurate value determination as it probably does not take into account a property’s unique characteristics that would have been identified with a physical inspection. Although the MPRA allows for the correction of flawed and incorrect valuations the onus lies with the property owner to prove that the property value is less than that determined by the municipal valuation. An objection against the municipal valuation needs to be lodged before a pre-determined date and with the correct and required documentation. Similarly, should the outcome of such objection not be acceptable an appeal can also be lodged in the prescribed time line with the required supporting information. It is also possible, in terms of the Act, to request a supplementary valuation should substantiating circumstances exist.
Business Valuations
A business valuation is the process (set of methods) to determine how much a business is worth or what the value of a part-owner’s interest in the business is. The calculations can include property, equipment, inventory, liquid assets, and also the management, size of the organisation, the industry it operates in, expected future earnings, and the share price.