Investment Appraisal

Calculate property purchase, sales value and investment return

The Investment Appraisal module is a property valuation and investment analysis tool that uses Income Capitalisation and Discounted Cash Flow (DCF) analysis to accurately appraise a property’s purchase and disposal values based on its rental cash flow forecast for up to 40 years.

IMPORTANT
We are pleased to announce since the acquisition of ARGUS EstateMaster by Altus Group, we are now able to offer ARGUS Enterprise as part of our asset and investment management solution. An industry leading commercial real estate software for asset and portfolio management, ARGUS Enterprise enables organisations to project the performance of their commercial real estate assets throughout the investment life cycle.

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Investment-Appraisal 

Key features

Discounted cash flow analysis


Generate a discount cash flow for an investment property, reporting on income, expenditure, vacancies, annual yields, net present value, internal rate of return and acquisition and sale values.

Income capitalisation


Specify capitalisation rates for each component of a property and calculate it's capital value based on passing income, fully leased income, net market income and reversionary market income.

Capex forecasting


Forecast capital expenditure over the life of the investment, such as major maintenance works and refurbishments, and analyse its impact on an investments cash flow and terminal sale value.

Investment analysis


Assess the feasibility of a property investment based on key performance indicators such as the internal rate of return, net present value, weighted lease duration and initial and equivalent yields.

Fund management


Analyse investor returns, taking into account debt leverage, management fees and distributions. Monitor the adequacy of working capital and the interest coverage ratio based on projected cash flow.

Sensitivity testing


Test the effect of market stress on your investment and run sensitivity analysis on key variables such as the discount rate, capitalisation rates and analyse their impact on the purchase value and sale value.

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