Question 13 Not yet answered Marked out of 10.00 T Flag question Question 13 (10 Marks) For this question you must use Excel. Estimate the market value of the subject property using the income approach. The subject property is a conventional house in good condition on a quiet backstreet with a 491 sqm site with a building area of 143 sqm. Investigations show 4 similar conventional houses that are quite comparable have sold recently and are currently rented Details of these are shown below. Price Month Building Site Area Condition Location Weekly Rent Property 1 $371,000 Sept-21 150 400 Pool Quiet Back Street $390 Property 2 $414.000 Oct-21 180 500 Cood Noisy Main Road $420 Property 3 $385,000 Oct-21 650 Quiet Back Street $370 Property + $574,000 Sept-21 Good Quiet Back Street S400 Sold Area 135 Good 150 750 The following additional information regarding the market may be useful in your analysis. You do not have to use all this information House prices have been increasing by about 0.5% per month at the start of 2021 but have stabilized over the last 3 months.. Properties with a site area over 680 sqm can be subdivided. The client is an investor with a required rate of return of 525% Investor Magazine shows that the average yield in this suburb is 4.75%. The CoreLogic Indicative Cap Rate for this suburb is 4.25% The CoreLogic Median Rent for this suburb is 5350 Your estimate will require a number of judgments. You need to explain each of these judgments in your argument for the market value. Your Excel workings and argument will make up the majority of the marks but also enter your estimated value into the question box. You should complete your work using Excel in the file provided. This contains the table above on the Q 13 tab. Remember to upload your file at the end of the exam. Answer: Question 13 Not yet answered Marked out of 10.00 T Flag question Question 13 (10 Marks) For this question you must use Excel. Estimate the market value of the subject property using the income approach. The subject property is a conventional house in good condition on a quiet backstreet with a 491 sqm site with a building area of 143 sqm. Investigations show 4 similar conventional houses that are quite comparable have sold recently and are currently rented Details of these are shown below. Price Month Building Site Area Condition Location Weekly Rent Property 1 $371,000 Sept-21 150 400 Pool Quiet Back Street $390 Property 2 $414.000 Oct-21 180 500 Cood Noisy Main Road $420 Property 3 $385,000 Oct-21 650 Quiet Back Street $370 Property + $574,000 Sept-21 Good Quiet Back Street S400 Sold Area 135 Good 150 750 The following additional information regarding the market may be useful in your analysis. You do not have to use all this information House prices have been increasing by about 0.5% per month at the start of 2021 but have stabilized over the last 3 months.. Properties with a site area over 680 sqm can be subdivided. The client is an investor with a required rate of return of 525% Investor Magazine shows that the average yield in this suburb is 4.75%. The CoreLogic Indicative Cap Rate for this suburb is 4.25% The CoreLogic Median Rent for this suburb is 5350 Your estimate will require a number of judgments. You need to explain each of these judgments in your argument for the market value. Your Excel workings and argument will make up the majority of the marks but also enter your estimated value into the question box. You should complete your work using Excel in the file provided. This contains the table above on the Q 13 tab. Remember to upload your file at the end of the exam
