Investment Analysis Details As a property analyst, you are required to carry out an investment analysis report for your client who has an opportunity to purchase income-producing property. You must id

Data Collection Table for Ass essment 1 Category Amount/Value Frequency Possible Source (s) A: Property Details Asking price ($) Use the real estate websites provided on vUWS Current rent ($) / meter - square Use market rent from real estate websites or report /publications by property compa nies Rent review (#) /year(s) 2 - 5 years for commercial property Management fee (%) of EGI Use 5% - 7% of the Effective Gross Income (EGI) Strata fee ($) /quarter Check for strata fee in the location of the subject property Council rate ($) /quarter Check the local council website of the subject property Water rate ($) /quarter Check from Sydney Water or similar company in other states Capital expenditure ($) /year Use 10% - 20% of the NOI or 1% - 2% of the market value of the subject property B: Market Information Rental growth (%) /year Check real estate websites or report/publications by property companies Expense growth (%) /year Check property companies’ report or calculate average CPI /inflation in the last 5 years Vacancy rate (%) /year Check from real estate websites or report/publications by property companies Incentives /year Check from real estate websites or report/publications by property companies Current cap rate (%) Use the NOI in the first year and divide that by the asking price of the property Capital growth (%) Use the long - term GDP growth rate ( average real GDP growth in the last 5 years) Discount rate (%) You can use current cap rate + capital growth rate OR risk free rate + risk premium Terminal cap rate (%) Current cap rate plus 50 to 100 bps ( mostly higher than the current cap rate) C: Capital Outlays Purchase price ($) Use the value from Part A Stamp duty ($) The formula will be provided in the DCF Excel fi le Transfer fee ($) Do some research Legal fee ($) Do some research Total capital outlays ($) Purchase price + Stamp duty + Transfer fee + Legal fee D: Others Selling expense @ 2% Usually 2% of the selling price