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Evidence Guide: CPPDSM6005A - Develop a property investment strategy

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

CPPDSM6005A - Develop a property investment strategy

What evidence can you provide to prove your understanding of each of the following citeria?

Establish investment requirements.

  1. Investment parameters, goals and objectives are determined and confirmed in consultation with relevant people.
  2. Effective targets and performance measures are developed that are consistent with investment expectations.
  3. Relevant information with regard to property and market sector characteristics is interpreted to provide strategic context to investment objectives.
  4. Market intelligence is collected from reputable sources and is readily available and up-to-date.
  5. Industry benchmarks are selected to ensure effective comparability with return on property and meaningful analysis against available data.
  6. Applicable ethical, legislative andorganisational requirements are interpreted and applied.
Investment parameters, goals and objectives are determined and confirmed in consultation with relevant people.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Effective targets and performance measures are developed that are consistent with investment expectations.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant information with regard to property and market sector characteristics is interpreted to provide strategic context to investment objectives.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Market intelligence is collected from reputable sources and is readily available and up-to-date.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Industry benchmarks are selected to ensure effective comparability with return on property and meaningful analysis against available data.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Applicable ethical, legislative andorganisational requirements are interpreted and applied.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake strategic analysis.

  1. Quantitative and qualitative analysis is undertaken of comparative marketdata to identify facts, issues, patterns, interrelationships and trends.
  2. Economic trends and market developments are evaluated in terms of potential implications and impact on investment objectives.
  3. Relevant due diligence and feasibility studies are accessed and considered to assist with determining potential investment viability.
  4. Investment options are determined and tested for viability and performance against identified investment parameters.
  5. Factors increasing or diminishing investment risk are identified and defined in a risk management plan.
  6. Sound reasoning is applied to ensure consistency of interpretations based on available information.
Quantitative and qualitative analysis is undertaken of comparative marketdata to identify facts, issues, patterns, interrelationships and trends.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Economic trends and market developments are evaluated in terms of potential implications and impact on investment objectives.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant due diligence and feasibility studies are accessed and considered to assist with determining potential investment viability.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investment options are determined and tested for viability and performance against identified investment parameters.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Factors increasing or diminishing investment risk are identified and defined in a risk management plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop investment strategy.

  1. Strategy is formulated based on a comprehensive analysis of tested information.
  2. Strategy is documented in a logical, concise and conclusive manner and presented in an appropriate format using business equipment and technology.
  3. Recommendations are made that are verifiable, current and detailed and meet identified investment requirements.
  4. Comments, analysis and recommendations are made available to relevant people for review and reformulation of investment strategy.
  5. Adjustments to investment strategy are determined and implemented as a result of feedback, changed trends or events.
  6. Information is securely maintained with due regard to client confidentiality, and legislative and organisational requirements.
Strategy is formulated based on a comprehensive analysis of tested information.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Strategy is documented in a logical, concise and conclusive manner and presented in an appropriate format using business equipment and technology.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendations are made that are verifiable, current and detailed and meet identified investment requirements.

Completed
Date:

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Comments, analysis and recommendations are made available to relevant people for review and reformulation of investment strategy.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Adjustments to investment strategy are determined and implemented as a result of feedback, changed trends or events.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

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:

interpreting and applying applicable legal, ethical and organisational requirements

establishing investment requirements and expectations through an assessment of consultation and sourced market information

formulating a property investment strategy, including identified investment options and a defined risk management plan

knowledge of organisation's practices, ethical standards and legislative requirements associated with assessing and formulating a viable property investment strategy

testing the viability and performance of potential investment options against investment parameters

using suitable analysis methods and techniques to identify and assess economic trends and 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.

Required Skills and Knowledge

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

Required skills:

communication skills to negotiate client requirements and consult with industry experts and others

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

literacy skills to interpret written and oral information

organisational skills to plan and schedule time lines and objectives

problem solving skills to anticipate factors that may affect property investment and to assess risk

research skills to source, analyse and interpret property and market information

technical skills to use software for planning and scheduling tasks, use financial and assessment software and spreadsheets efficiently, and access market information.

Required knowledge and understanding:

building control legislation, codes and relevant Australian standards

business and industry property networks

industry benchmarks

investment risk factors and relationship to return expectations

limitations of work role, responsibility and professional abilities

OHS issues and requirements

organisational and professional procedures, ethical practices and business standards

property and investment markets

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

sources of industry and market information

supply and demand economics

taxation as it applies to property development.

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:

concepts and plans

strategies and placement of capital in property for investment

productive use of property and assets

customer service outcomes.

Parameters may include:

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 financial resources

market standing

return on investment

return versus risk

taxation considerations.

Relevant people may include:

accountants

agents

clients

government personnel

interested parties

legal representatives

management and colleagues

members of industry associations

taxation specialists.

Performance measures:

may include:

quantitative and qualitative assessments

may be:

financial and non-financial

statistical and non-statistical.

Relevant information may include:

bank reports

building codes

current and planned property or site developments

deposited, survey and other plans and maps

depreciation schedules

general knowledge of industry

government statistics

industry reports and indices

land title and zoning

market intelligence from industry operators or other interested parties

media reports

performance of comparable properties

permits

published analytical reports

tenancy and other contracts or leases.

Sources may include:

consultants

information services

press clippings

published industry data, including industry indices

third parties

trade journals.

Industry benchmarks may include:

discounted cash flow

employment rates

industry association performance index

inflation rate

internal rate of return

life cycle costing

published vacancies index

tenancy mix.

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.

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

relevant industry 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.

Comparative market data may include:

best practice information

national and international benchmarking

inter-organisation comparison data.

Risk may relate to:

age of property

asset allocation and investment spread

borrowing risk

gearing

comparative risk against alternative in 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.

Business equipment and technology may include:

data storage devices

email

facsimile machines

internet, extranet and intranet

photocopiers

printers

scanners

software applications, such as databases and word applications

work computers.