Q: What are the three main investment objectives?
A: 1. Protection against inflation 2. Manageability 3. Liquidity
Q: Give an example of an investment that protects against inflation.
A: Real estate or gold
Q: Define manageability in investments.
A: How easily an investment can be controlled or managed (e.g., stocks easier than rental property)
Q: Define liquidity.
A: How quickly an investment can be converted to cash without significant loss in value
Q: What is the Comparative Sale Approach?
-Qu’est-ce que l’approche par comparaison des ventes ?
A: Estimating a property’s value by comparing it to recent sales of similar properties
R : Estimer la valeur d’un bien en comparant avec des ventes récentes de biens similaires
Q: Metrics used in Comparative Sale Approach?
Q : Quels sont les indicateurs utilisés dans l’approche par comparaison des ventes ?
A: - Price per area ($/sq.ft.)
• Price per unit ($/unit)
• Municipal assessment comparison
R : - Prix par superficie ($/m²)
• Prix par unité ($/logement)
• Comparaison avec l’évaluation municipale
Q: Formula for Overall Capitalization Rate (OCR) Method?
Q : Formule de la méthode du taux de capitalisation global (OCR) ?
PropertyValue
A: Value = NOI ÷ Cap Rate
NOI = Net Operating Income = Gross Income − Operating Expenses
R : Valeur = NOI ÷ Taux de capitalisation
* NOI = Revenu Net d’Exploitation = Revenu Brut − Dépenses d’exploitation
NetOperatingIncome(NOI)
Overall
Q: Example of OCR method calculation.
A: NOI = $50,000, Cap Rate = 5% → Value = $50,000 ÷ 0.05 = $1,000,000
Q: What are GIM and NIM?
A: - GIM = Gross Income Multiplier = Price ÷ Gross Income
* NIM = Net Income Multiplier = Price ÷ Net Operating Income
Multiplicateur du revenu brut (MRB)? Multiplicateur du revenu net (MRN)
A: - GIM = Gross Income Multiplier = Price ÷ Gross Income
* NIM = Net Income Multiplier = Price ÷ Net Operating Income
So together: GIM / MRB = Prix ÷ Revenu brut NIM / MRN = Prix ÷ Revenu net d’exploitation
Q: Example of Gross Income Multiplier (GIM).
A: Price = $1,000,000, Gross Income = $100,000 → GIM = 10
Q: What is the Cost Approach?
A: Property value = Rebuild cost − Depreciation + Land value
A: Property value = Rebuild cost − Depreciation + Land value
Q: Methods under Cost Approach?
A: - Quantity Survey (detailed cost)
• Unit-in-Place (by component)
• Inventory Cost (standard tables)
• Comparative Market Analysis
A: - Quantity Survey (detailed cost)
• Unit-in-Place (by component)
• Inventory Cost (standard tables)
• Comparative Market Analysis
Q: Example of Cost Approach calculation.
A: Rebuild cost = $900,000, Depreciation = $100,000 → Value = $800,000 + Land
Q: Quick mnemonic for investment objectives.
A: Inflation, Manageability, Liquidity → IML
A: Inflation, Manageability, Liquidity → IML
