Property Valuation & Investment Analysis Quiz
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Questions and Answers

Which approach to value is used in the direct capitalization approach to property valuation?

  • Market approach
  • Cost approach
  • Sales comparison approach
  • Income approach (correct)

    • What is the discount rate or required return used in the valuation formula?

  • Real GOC yield
  • Expected inflation
  • Risk premium
  • 10 year Gov't Bond Yield (correct)

    • What is the purpose of using a real estate pro forma?

  • To determine the property's appreciation
  • To analyze the property's cash flows (correct)
  • To assess the property's risk
  • To calculate the property's value

    • What does the term 'cap rates' refer to in property valuation?

    <p>Capitalization rates</p> Signup and view all the answers

    What is the value10 in the valuation formula?

    <p>Expected sale price at the end of 10 year holding</p> Signup and view all the answers

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