An investment property is purchased for $450,000. The property currently produces a net rental of $1650 per month. The property is purchased with the aid of a 25 year mortgage of $360,000 to be repaid by equal monthly installments . The interest rate is fixed at 6.5% per annum . You anticipate that rents will grow at 2% per annum and that the rent payable will be adjusted to market value on annual basis . The property is to be held for 5 years and then sold. You anticipate growth in property values to be in 4% per annum.

If your required rate of return is 12% what is the net present value of the investment ? (Ignore income taxation, capital gains tax and costs).