a valuation and investment analysis report for the property 60 Moorabool Street Geelong VIC 3220. The research data required to undertake this analysis will be sourced from (a) your first assignment (b) from materials provided on CloudDeakin and (c) other related materials you found online.

Suggested sections and headings within this part of the report

The following headings are provided for guidance only. Changes, additions and deletions from this list may be necessary as you see fit. Within these categories you should also provide a definition of the method you are applying to demonstrate your understanding.

Rental rationale- Here you need to analyze the market rents provided as benchmark, excluding any aberrations, and compare these to existing rents with the aim of determining and validating rents for use in the analysis process.

Direct Capitalization Method - In this section market value of the property should be determined using direct capitalization method. In order to do that you should analyze the sales and rental comparability and provide justification of data used etc. (the section of "Sales evidence") and include discussion and application of outgoings. Clear conclusions on the adopted rental levels are needed as well as clear discussion of sales to explain your valuation approach. You must provide detailed step-by-step annotated calculations explaining all assumptions, capitalization rate derivation and final valuation.

Discounted Cash Flow (DCF) Valuation - In this section market value of the property should be determined using DCF method. You must provide all the information to explain all assumptions and interim findings, showing how cash flow estimations and discount rates have been arrived at etc. DCF model has numerous assumptions throughout which must all be discussed and justified. The DCF must be calculated over a TEN (10) YEAR PERIOD and on a properly working excel spreadsheet.

Reconciliation of valuation - Here you must discuss the merits and weaknesses of each method (DCM and DCF) you have used in this valuation and reconcile the valuation outcome that you believe is most appropriate with pertinent justifications.

Investment and financing analysis-The feasibility of this investment should be tested by criteria related to DCF method such as IRR, NPV and Payback period etc. You also need to analyze and discuss the other issues related to the profitability of the investment, especially the financing choice. DCF model has numerous assumptions throughout which must all be discussed and justified.

Final conclusion - Here you must provide your final comments for the property value, valuation limitations, investment feasibility, and financing recommendations for your client.

Please note: The spreadsheet must show all headings, formulas (inserted in relevant cells) and be able to "test" by the marker by inserting new values to determine correct performance. You will need to individually discuss variables, projections and assumptions in the report, not just make small annotations in the spreadsheet.