This unit of competency supports the work of those involved in managing the performance of a property investment.

Nil

ELEMENT

PERFORMANCE CRITERIA

1Establish performance requirements.

1.1 Property investment requirements are determined and confirmed in consultation with clients and relevant people.

1.2 Client needs and expectations are accurately assessed and clarified using appropriate research and survey techniques and consultative processes.

1.3 Relevant information and legislation are assessed to ensure investment options comply with investment requirements.

1.4 Reliable methods for gathering information are used, making efficient use of time and resources.

1.5 Applicable ethical, legislative and organisational requirements are interpreted and applied.

2Develop performance management strategies.

2.1 Performance management strategy is formulated based on analysis of investment requirements against market conditions.

2.2 Performance criteria are determined and tested to ensure they are logical, clear, concise and capable of implementation.

2.3 Factors increasing or diminishing investment risks are identified, analysed and discussed with client.

2.4 Quality assurance goals and strategies are established in consultation with relevant people.

2.5 Performance strategy is documented and communicated to relevant people involved in implementation.

3Manage implementation of strategies.

3.1 Monitoring and reporting arrangements for implementation of performance management strategy are effectively communicated.

3.2 Targets and milestones are identified and linked to performance criteria to ensure achievement of investment requirements.

3.3 Documentation and checklists associated with implementation of performance management strategy are prepared and distributed to relevant people.

3.4 Resource requirements are identified and organised according to organisational requirements.

4Evaluate performance of property investment.

4.1 Property investment strengths and weaknesses are analysed and measured against property trends and market parameters to determine future recommendations.

4.2 Reliable and valid data analysis methods are applied to identify facts, issues, patterns, interrelationships and trends.

4.3 Trends are accurately assessed to provide meaningful information on performance of property investment.

4.4 Factors increasing or diminishing investment risk are identified, analysed and discussed with client.

4.5 Sound reasoning is applied to ensure consistency of interpretations based on available information.

4.6 Information is securely maintained with due regard to client confidentiality, and legislative and organisational requirements.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

analytical skills to apply statistical methods and techniques

computing skills to access the internet and web pages, prepare and complete online forms, lodge electronic documents and search online databases

interpersonal skills to relate to people from a range of social, cultural and ethnic backgrounds and varying physical and mental abilities and liaise with property investment stakeholders

organisational skills to maintain records and databases, organise and prepare property investment information and build property investment models

problem solving skills to determine factors that may affect property markets

research skills to analyse and interpret property and market information and identify relevant sources of information

technology skills to use financial and assessment software and spreadsheets.

Required knowledge and understanding:

a range of research methods and analysis techniques

budgeting methods and techniques

concepts and strategies for placement of capital in property for investment

current property and investment market

economics as it applies to property development

ethical practices and relevant codes of conduct

industry benchmarks

local property market conditions and overall trends in the industry

relevant federal and state or territory legislation and local government regulations related to:

anti-discrimination

consumer protection

environmental issues

equal employment opportunity (EEO)

financial probity

franchise and business structures

industrial relations

OHS

privacy

property sales, leasing and management

taxation as it applies to property development.

Overview of assessment

This unit of competency could be assessed through practical demonstration of managing the performance of a property investment. 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:

analysing property investment information and identifying property trends and risk factors

interpreting and applying applicable legal, ethical and organisational requirements

arranging required resources to support the implementation of performance measurement strategies

establishing performance criteria to assess property investment performance through an assessment of sourced market information

knowledge of organisation's practices, ethical standards and legislative requirements associated with managing the performance of a property investment

testing the performance of property investments against market parameters

using suitable analysis methods and techniques to identify and assess economic trends, market data and developments.

Context of and specific resources for assessment

Resource implications for assessment include:

a registered provider of assessment services

assessment materials and tools

candidate special requirements

competency standards

cost and time considerations

suitable assessment venue and equipment

workplace documentation.

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:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

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.

Property investment may include:

concepts and plans

strategies and placement of capital in property for investment

productive use of property and assets

customer service outcomes.

Clients may be:

developers

financial institutions

fund managers

individuals

internal departments

internal and external property groups

investment organisations

joint ventures

owner-occupiers

partners

small and large principals

unit trustees.

Relevant people may include:

accountants

agents

analysts

clients

government personnel

legal representatives

management and colleagues

members of industry associations

site personnel

taxation specialists.

Client needs and expectations may relate to:

immediate capital gains

long-term capital gains.

Consultative processes may include:

face-to-face meetings

telephone, facsimile and written communication.

Information may include:

bank reports

general knowledge of industry

government statistics

industry reports and indices

market intelligence from industry operators or other interested parties

media reports

published analytical reports.

Legislative requirements may be outlined and reflected in:

Australian standards

general duty of care to clients

home building requirements

privacy requirements

relevant federal, and state or territory legislation that affects organisational operation, including:

anti-discrimination and diversity

environmental issues

EEO

industrial relations

OHS

codes of practice covering the market sector and industry, financial transactions, taxation, environment, construction, land use, native title, zoning, utilities use (water, gas and electricity), and contract or common law

strata, community and company titles

tenancy agreements

trade practices laws and guidelines.

Organisational requirements may be outlined and reflected in:

access and equity principles and practice guidelines

business and performance plans

complaint and dispute resolution procedures

goals, objectives, plans, systems and processes

legal and ethical requirements and codes of practice

mission statements and strategic plans

OHS policies, procedures and programs

policies and procedures in relation to client service

quality and continuous improvement processes and standards

quality assurance and procedure manuals.

Analysis may include:

computer modelling

examination of cash flows and other financial projections

examination of collected data

quantitative and qualitative analysis

probability analysis

time series recognition.

Market conditions may be influenced by:

availability of alternatives

business confidence

economic conditions

level of competition.

Performance criteria:

may include:

quantitative and qualitative assessments

may be:

financial and non-financial

statistical and non-statistical.

Risks may relate to:

age of property

asset allocation and investment spread

borrowing risk

gearing

alternative investments

competitive development

exit strategy and investment scenario analysis

interest rates

level of regulation

lifestyle choices

market and property sector risks, including:

fluctuations in economic cycle

interest rates

stock market

technology in use

tenancy security

volatility of income and capital.

Quality assurance goals and strategies may include:

a formal structure against which progress can be evaluated

budgets and timetables that enable the commitment of resources at appropriate points in the project

compliance with Australian standards

contingency plans to cater for a change of corporate focus or significant difficulties

continuous improvement strategies

mechanisms for involving a wide variety of interested parties or stakeholders in the project

procedures for monitoring and evaluating project outcomes and client satisfaction

reducing risk by anticipating, evaluating and developing strategies for the management of possible problems

reporting procedures and protocols.

Targets and milestones may include:

agreed reporting requirements

asset life cycle reporting

completion of key tasks

measurement and achievement of set outcomes.

Documentation may include information relating to:

budgets and operating costs

legal documentation

management policy and procedures

property leases, plans or contracts

service and maintenance records

sub-plans, including environment, human resource management and marketing.

Resources may include:

materials, tools and equipment

personnel

training

transport.

Market parameters may relate to:

ability to control investment

administrative talent

balancing a portfolio

capacity to improve assets

capital growth versus short-term gains

cash flows

class and type of property

demographics

exit strategies

gearing possibilities

geographic aspects

limits to the financial resources

market standing

return on investment

return versus risk

taxation considerations.

Unit sector

Property development, sales and management

Property operations and development

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.