Income Approach Part 2 Computation

A value of a building with a first year net operating income of P200,000.00 and with an overall capitalization rate of 9.52% is

• P2,300,840.00

• P2,200,000.00

• P2,100,000.00

• P2,100,840.00

The subject property has potential gross income (PGI) of Php100,000, vacancy and collection losses(V&C) of 7% fixed expenses of Php35,000,variable expenses of Php25,000, and reserves for replacement of Php7,000. Recent sales of very similar properties in this market suggest that a capitalization rate of 12.0% is appropriate. The capitalization rates were extracted from sales in which the price was divided into the estimate of net operating income from the broker without reserves. What is the market value of the subject property?

• Php300,000

• Php275,000

• Php250,000

• Php225,000

A 100-unit apartment complex includes 60 one-bedroom and 40 two-bedroom units that are rented out for Php4,000.00 and Php7,000.00 respectively. The apartment complex has vacancy rate of 5%, a miscellaneous income of Php50,000.00 per year and an annual operating expense of Php600,000.00. Compute the potential gross income of the apartment complex.

• Php6,240,000.00

• Php5,928,000.00

• Php6,290,000.00

• Php5,978,000.00

A 100-unit apartment complex includes 60 one-bedroom and 40 two-bedroom units that are rented out for Php4,000.00 and Php7,000.00 respectively. The apartment complex has vacancy rate of 5%, a miscellaneous income of Php50,000.00 per year and an annual operating expense of Php600,000.00. Compute the EFFECTIVE gross income of the apartment complex.

• Php6,290,000.00

• Php5,978,000.00

• Php5,928,000.00

• Php5,378,000.00

What is the overall capitalization rate given the following data? LTV Ratio = 75%, Mortgage constant = 0.09, Equity rate = 13%

• 8%

• 3%

• 12%

• 10%

An appraiser was asked to compute the fair market rent per sqm of a 500square meter vacant lot using the following assumptions FMV of lot per sqm. 12,000 php/sqm Interest Rate 10% p.a.

• 500,000

• 600,000

• 700,000

• 800,000

A commercial property producing an annual gross rent of P39,000 was sold two months ago for 341,250. The property's gross rent multiplier is

• 7

• 7.75

• 8.75

• 8.5

What is the building value with a net operating income of P300,000 and it’s overall capitalization rate is 8.52 percent?

• P3,512,126

• P3,512,127

• P3,521,126

• P3,521,127

What is the value of a property with a building value of P2,400,000, a land capitalization rate of 8.0%, building overall rate of 14% and net operating income of P545,000?

• P 4,012,000

• P 6,812,500

• P 4,921,000

• P 5,012,500

What is the expected annual income of a property that recently sold for Php100,000 where the buyers indicated that they used an overall capitalization rate (R0) of 9.25%?

• Php925 per year

• Php9,250 per year

• Php92,500 per year

• Cannot be determined by this data