This unit of competency supports the work of those involved in providing effective advice on investment in property.

Nil

ELEMENT

PERFORMANCE CRITERIA

1Determine investment requirements.

1.1 Property investment requirements are identified in consultation with relevant people according to organisational requirements.

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

1.3 Relevant information and legislative requirements are accessed to ensure investment options comply with requirements.

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

1.5 Situations requiring specialist advice are identified and assistance is sought as required according to organisational requirements.

2Analyse investment opportunities.

2.1 Identified property investment opportunities are analysed and measured against property trends and market parameters to determine future recommendations.

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

2.3 Trends are accurately assessed to provide meaningful information on the performance of property investment opportunities.

2.4 Factors involved in increasing or diminishing investment risk are identified, analysed and discussed with client.

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

3Provide advice and recommendations.

3.1 Property investment strategy is prepared that provides clear advice and recommendations to meet identified client needs according to organisational requirements.

3.2 Feedback on suitability and sufficiency of recommendations is obtained according to organisational requirements.

3.3 Recommendations are provided that are consistent with research objectives and supported by verifiable evidence.

3.4 Advice and recommendations are presented in an appropriate format, style and structure using business equipment and technology.

3.5 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 basic 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 submissions and propose models for property investment

problem solving skills to determine factors that may affect property markets

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

technology skills to use financial and assessment software and spreadsheets efficiently and access and present market information.

Required knowledge and understanding:

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

investment risk factors and relationship to return expectations

local government regulations

local property market conditions and overall trends in the industry

range of research methods and analysis techniques

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 funding

specific market sector

taxation as it applies to property development.

Overview of assessment

This unit of competency could be assessed through practical demonstration of providing effective advice on investment in property. 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

consulting with investors and interested parties, receiving feedback and incorporating it where appropriate into future work processes

documenting and presenting advice and recommendations on property investment opportunities

knowledge of organisation's practices, ethical standards and legislative requirements associated with providing effective advice on investment in property

sourcing and evaluating property investment information and identifying investment opportunities.

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, plans and strategies

placement of capital in property for investment, productive use and customer service outcomes.

Relevant people may include:

accountants

agents

analysts

clients

government personnel

legal representatives

management and colleagues

members of industry associations

site personnel

taxation specialists.

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.

Clients may include:

developers

financial institutions

fund managers

individuals

internal and external property groups

investment organisations

joint ventures

owner-occupiers

partners

unit trustees.

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

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.

Resources may include:

materials

personnel

tools and equipment

training

transport.

Specialist advice may be sought from:

analysts

architects

bankers and financiers

business consultants

government officials

investment consultants

members of industry associations

planners

real estate agents

solicitors

valuers.

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 financial resources

market standing

return on investment

return versus risk

taxation considerations.

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.

Risk may relate to:

access restrictions on property

borrowing risk

gearing

economic

market and property sector risks, including:

fluctuations in economic cycle

interest rates

stock market

risk factors and return expectations

specific property risk

volatility of income and capital.

Property investment strategy may cover:

determining market sectors

relative commitment of interested parties

type of property.

Feedback may be sought from:

clients and their legal representatives

management and colleagues

formal and informal performance appraisals

workplace assessment.

Business equipment and technology may include:

computers

data storage devices

email

facsimile machines

internet, extranet and intranet

photocopiers

printers and scanners

software applications, such as databases and word applications.

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.