Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit of competency specifies the outcomes required to formulate and assess a viable property investment strategy. It requires the ability to establish investment requirements, identify market developments and trends, use standard financial analysis methods and techniques to determine investment options, and develop a risk management plan. The unit may form part of the licensing requirements for persons working in the property industry, including in the real estate, business broking, stock and station agency and property operations and development sectors, in those States and Territories where these are regulated activities. |
Application of the Unit
Application of the unit |
This unit of competency supports the work of those involved in formulating and assessing a viable property investment strategy. |
Licensing/Regulatory Information
Refer to Unit Descriptor
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
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1 Establish investment requirements . |
1.1 Investment parameters , goals and objectives are determined and confirmed in consultation with relevant people . 1.2 Effective targets and performance measures are developed that are consistent with investment expectations. 1.3 Relevant information with regard to property and market sector characteristics is interpreted to provide strategic context to investment objectives. 1.4 Market intelligence is collected from reputable sources and is readily available and up-to-date. |
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1.5 Industry benchmarks are selected to ensure effective comparability with return on property and meaningful analysis against available data. 1.6 Applicable ethical, legislative and organisational requirements are interpreted and applied. |
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2 Undertake strategic analysis . |
2.1 Quantitative and qualitative analysis is undertaken of comparative market data to identify facts, issues, patterns, interrelationships and trends. 2.2 Economic trends and market developments are evaluated in terms of potential implications and impact on investment objectives. 2.3 Relevant due diligence and feasibility studies are accessed and considered to assist with determining potential investment viability. 2.4 Investment options are determined and tested for viability and performance against identified investment parameters. 2.5 Factors increasing or diminishing investment risk are identified and defined in a risk management plan. 2.6 Sound reasoning is applied to ensure consistency of interpretations based on available information. |
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3 Develop investment strategy . |
3.1 Strategy is formulated based on a comprehensive analysis of tested information. 3.2 Strategy is documented in a logical, concise and conclusive manner and presented in an appropriate format using business equipment and technology . 3.3 Recommendations are made that are verifiable, current and detailed and meet identified investment requirements. 3.4 Comments, analysis and recommendations are made available to relevant people for review and reformulation of investment strategy. 3.5 Adjustments to investment strategy are determined and implemented as a result of feedback, changed trends or events. 3.6 Information is securely maintained with due regard to client confidentiality, and legislative and organisational requirements. |
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Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
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This section describes the essential skills and knowledge and their level, required for this unit. |
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Required skills :
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Required knowledge and understanding :
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Evidence Guide
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Overview of assessment |
This unit of competency could be assessed through practical demonstration of assessing and formulating a viable property investment strategy. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
A person who demonstrates competency in this unit must be able to provide evidence of:
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Context of and specific resources for assessment |
Resource implications for assessment include:
Where applicable, physical resources should include equipment modified for people with disabilities. Access must be provided to appropriate learning and/or assessment support when required. Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed. |
Validity and sufficiency of evidence require that:
In all cases activity and must include evidence relating to each of the where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed. |
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Range Statement
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.
Investment may relate to: |
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Parameters may include: |
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Relevant people may include: |
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Performance measures : |
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Relevant information may include: |
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Sources may include: |
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Industry benchmarks may include: |
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Analysis may include: |
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Legislative requirements may be outlined and reflected in: |
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Organisational requirements may be outlined and reflected in: |
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Comparative market data may include: |
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Risk may relate to: |
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Business equipment and technology may include: |
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Unit Sector(s)
Unit sector |
Property development, sales and management |
Competency field
Competency field |
Property operations and development |