Quiz
2012 Exam - Section A
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Questions in this quiz (20)
1Which of the following refers to an equitable interest in land?
- AFreehold ownership
- BTrust ownership
- CA purchaser's interest under sale and purchase
- DA mortgagor's equity redemption
- ENone of the above
2Which of the following issues account for an imperfection in the real estate market?
- AValues changing quickly
- BEase in establishing values
- CBarriers to entry
- DLow transaction costs
- EEfficient resource allocation
3Assume a table mortgage of $185,000 @ 10% over a 15 year period. How much per year would be required to full amortise the loan?
- A$20,350
- B$19,000
- C$21,324
- D$24,323
- E$11,850
4A Scenario Analysis is used to:
- AAnticipate future capital gain
- BDetermine the impact that change in multiple variable will have on investment return
- CAnalyse investment return from a specific investor's point of view
- DEstimate potential future capital expenses
- ECalculate the present value of future benefits
5The higher the capitalisation rate the:
- ALower the property values and higher the risk
- BHigher the property value the lower the risk
- CWorse the location
- DLess likely an investor will be interested
- Ea & d
6Assume a property purchased for $2.3 million will increase its value at the rate of 6% compounded annually. The value of the property in 6 years time will be?
- A$13,800,000
- B$3,262,593
- C$1,621,409
- D$3,036.377
- E$12,500.000
7A feasibility analysis is best described as:
- AA calculation of initial yield
- BAn analysis of investment income within acceptable levels of risk for a specific investor or An analysis of investment viability within acceptable levels of profitability and risk for specific investors
- CAn analysis of estimation of potential future capital expenses
- DA tool for determining appropriate tenant selection
8Economic aspects of land arise from:
- AImmobility
- BIlliquidity
- CNone of the above
- DImprovements quality and site size
- Eb & d
9Vp relates to:
- AThe rating value
- BThe market value
- CThe use value to owner
- DThe loan value
- EThe offering value when a property is taken to market
10The property advisor would best assess the viability of an investment by:
- ATossing a coin
- BUsing the advanced mathematical functions of NPV and IRR
- CAssessing the management capabilities of the investor
- DEnsuring the investor's borrowing capacity
- EEstimating the strength of the local market
11The Crown holds four specific rights relative to private real estate grouped under the authorities known as:
- AAppurtenances, eminent domain, police power, and escheat
- BTaxation, escheat, police power and ordinances
- CPolice power, taxation, eminent domain and bundle of rights
- DPolice power, escheat, eminent domain and taxation
- ENone of the above
12A lease provides a landlord with a net cash flow of $20,000 p.a for the next six years. What is the lease value when it is contracted given that the opportunity cost of capital is 10% per annum?
- A$120,000.50
- B$86,789.00
- C$11,289.47
- D$86,897.98
- E$87,105.21
13The cost approach is commonly used in the valuation of:
- AOld and substantially obsolete buildings
- BFamily houses over 10 years old
- CVacant land
- DNew buildings or special-use buildings
- ENone of the above
14One of the essential elements of value is:
- AHighest and best use
- BTransferability
- CLocation
- DEnvironmental control
- EZoning
15Assume a 24-year table mortgage of $550,000 at 10% interest rate with one annual payment at the end of each year. The principal outstanding at the end of year 10 is?
- A$450,950.87
- B$3,840.95
- C$23,246.39
- D$21,345.18
- ENone of the above.
16Assume a 24-year table mortgage of $550,000 at 10% interest rate with one annual payment at the end of each year. The annual payments on the mortgage are? (assume one payment p.a at the end of the year)
- A$69,14.50
- B$61,214.88
- C$61,422.99
- D$60,564.33
- ENone of the above
17Three tenants need to make equal payments to replace the central heating system in a commercial building in 15 years. The purchase price of the system will be $330,000. The annual amount each tenant needs to be set aside at 10% interest is (rounded)?
- A$10,386
- B$110,000
- C$3,462
- DNone of the above
18Which of the following is a factor in the capital structure of property?
- AOriginal equity
- BMortgage reduction
- CCapital appreciation
- DPhysical depreciation
- ENone of the above
19Terraview provides what type of information?
- ASales database
- BRental database
- CPhotos
- DMapping
- ENone of the above
20There is a wide range of variable payment mortgage products on the real estate market. Which of the following does NOT belong to this category of products?
- AHome equity release loans
- BBalloon payment
- CRevolving credit
- DPartial amortisation
- EHome equity sharing
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- Description
- 127.241 REVM Multiple Choice Questions
- Author
- Eve Prouse
- Language
- English
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