A valuer is determining the capitalisation rate for a retail property investment. The rate should primarily reflect which market factors?
Correct Answer
B) Market-derived rates from comparable investment sales and risk assessment
Capitalisation rates must be market-derived from analysis of comparable investment property sales, reflecting investor behaviour and risk perceptions for similar properties. This ensures the rate reflects actual market conditions rather than theoretical calculations or individual investor requirements.
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A valuer is conducting a CMA for a 3-bedroom house. Which property would be the BEST comparable sale?
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A valuer is using multiple approaches to value a unique heritage-listed commercial property. The comparison approach indicates $1.8M, the cost approach shows $2.2M, and the income approach suggests $1.6M. Given the property's unique characteristics and limited comparable sales, which approach should be given the greatest weight?