Question

17. Which of the following statement(s) is true of the Torrens Land Registration System?

a. The title is guaranteed by the State

b. A centralised register is not required

c. Searching of historical interests is required

d. It is the predominant system used in the USA

e. None of the above

18. When the Net Present Value (NPV) of an investment is zero, which of the following statements is true:

a. The required rate of return has not been achieved

b. The discount rate is the rate of return achieved in the investment

c. The investment is achieving a nil return

d. Cashflows are insufficient to meet investment objectives

e. None of the above are correct

19. A property has an annual gross income of $120,000, unrecoverable operating expenses of $18,000 p.a. and interest costs of $5,000 per annum. Using the income approach at a capitalisation rate of 6.5%, what is the value estimate to the nearest whole dollar?

a. $1,569,231

b. $1,492,308

c. $631,250

d. $1,846,154

e. None of the above

20. A property purchased for $800,000 has a gross income of $90,000, unrecoverable operating expenses of $8,000 and is expected to increase in value by $10,000 p.a. What is the total (composite) net return for year one?

a. 9.7%

b. 11.3%

c. 12.5%

d. 11.25%

e. 11.5%