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Started on Tuesday, 7 March 2023, 2:33 PM

State Finished

Completed on Tuesday, 7 March 2023, 3:14 PM

Time taken 40 mins 16 secs

Question 1 The property market can be categorised into different sectors. Mention one of those
Complete sectors.
Marked out of 0.50

Answer: Residential Sector

Question 2 You have invested $200,000 today in a bank that offers a 6% interest rate p.a. on
Complete investment deposits. How much will your investment be 10 years from today?
Marked out of 1.00

Answer: $358169.54 

Question 3 The most appropriate method of valuation to adopt in the valuation of an income-
Complete producing oTce complex is:
Marked out of 0.50
a. ProVt method

b.
Investmen method

c. Residual method

d. Comparison method

Question 4 Your cousin who is a property investor will receive a rent of $1,200,000 p.a. from an
Complete industrial tenant in 5 years’ time when the current rent (lease) is due for renewal. If this
Marked out of 1.00 rent is discounted at 8.5% p.a., how much is the rent worth today?

Answer: $615789.74

Question 5 The following are different stages of the property investment (market) cycle except
Question 5 The following are different stages of the property investment (market) cycle except
Complete

Marked out of 0.50 a. Decline

b. Bottom

c. Rapid

d. Growth

Question 6 Your cousin has a sum of money that s/he want to invest in real estate/property asset.
Complete Mention one category of the property sector in which the money can be invested in.
Marked out of 0.50

Answer: Commercial Sector/OTce Sector

Question 7 For a property value to be regarded as "Market Value" it must exhibit the following except
Complete

Marked out of 0.50 a. Secret marketing

b. Arm's length transaction

c. Willing seller

d. Willing buyer

Question 8 A property investor has decided to save $50,000 out of the annual proVt from the
Complete investment in a venture that offers an 8.5% interest p.a. for the next 5 years. How much
Marked out of 1.00 will the investor have at the end of the 5th year if the deposit is compounded annually?

Answer: $296268.64

Question 9 An investor has decided to save $250,000 annually from the rent receivable from an
Complete investment. CBA is offering a 9% interest rate p.a. on this savings. The investor planned to
Marked out of 1.00 use this future value to purchase another property. In 9 years' time, the investor will be
able to buy a property that is worth how much?

Answer: $3255259.11

Question 10 The basic components of a compounding problem include the following except:
Complete

Marked out of 0.50 a. The time/duration of investment

b. An interest rate

c. Annual sinking fund

d. An initial deposit
Question 11 You will need $1,000,000 in 5 years to refurbish your shopping complex investment.
Complete Obviously, you will need to be saving a sum annually from the rental income from the
Marked out of 1.00 shopping complex for the next 5 years. How much do you need to be saving annually to
achieve this goal if the annual saving will be kept in an account that offers a 7.5% interest
rate p.a.?

Answer: $172164.72

Question 12
According to the CBRE’s 2023 Asia PaciVc Market Outlook Report, a commercial property
Complete
that has a NABERS rating of 6.0 will enjoy a rent premium of:
Marked out of 0.50

a. 0%

b. - 3%

c. +8%

d. +6%

e. +2%

Question 13 Mention one attribute of a good property investment.

Complete

Marked out of 0.50 Answer: good return on investments

Question 14 Assuming you will retire in 25 years and you want to receive a lump sum of $1,000,000 at
Complete retirement. How much must you deposit today in an account that offers an 11% interest
Marked out of 1.00 rate p.a. to achieve this ambition?

Answer: $73608.09

Question 15 Mention one factor that could determine property value

Complete

Marked out of 0.50 Answer: Location of a Property

Question 16 Traditional property valuation methods are commonly used in practice due to their long
Complete history. However, advanced valuation methods are gaining more popularity lately. Mention
Marked out of 0.50 one advanced property valuation method.

Answer: Hedonic Pricing Model (HPM)

Question 17 A rational property investor will identify the goals and objectives of the investment only
Complete after making the investment decision.
Marked out of 0.50
Select one:
True

False

Question 18 You are offered 2 options to either collect $100,000 today or $200,000 after 5 years.
Complete considering an interest rate of 9% p.a., which option is better?
Marked out of 1.00
The Future Value of 100,000 after 5 years @9%p.a is $153826.40

So its better to Collect $200,000 after 5 years which would be $307,724.79

Question 19 Every year, a property investor receives $2,000,000 as the rent from a particular property
Complete investment. This rent is expected to grow at a rate of 7% p.a. If this assumption is
Marked out of 1.00 achieved, what will be the rent in 5 years time?

Answer: $2805103.46

Question 20 One of the advantages of property investment include:

Complete

Marked out of 0.50 Answer: Can be used for regular jow of income

Question 21 A property investor has decided to save $50,000 out of the proVt realised annually from a
Complete real estate investment. The investor intends to do this for the next 10 years and save this
Marked out of 1.00 amount annually in an account that offers an 8.5% interest p.a. How much will the investor
have at the end of the 10th year if the interest on the annual deposit is compounded
annually?

Answer: $741754.97

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