SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply technical knowledge and insight into property as an investment 
SAQA US ID UNIT STANDARD TITLE
242576  Apply technical knowledge and insight into property as an investment 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14524  Demonstrate and apply knowledge and insight into property as an investment  Level 5  Level TBA: Pre-2009 was L5  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended learners who are involved in product development and/or who give information to Intermediaries and need an understanding of property as an investment in order to give financial advice. It will be useful for Asset Managers, Trustees, Investors, Principal Officers, Broker Consultants, Intermediaries, Portfolio Managers, Financial Planners and Financial Advisors.

The qualifying learner is capable of:
  • Explaining property as an investment asset class.
  • Interpreting the risk and return of property as an investment.
  • Assessing the impact of the various drivers on return of property investments.
  • Demonstrating knowledge and understanding of how property is valued for investment purposes. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • The component sub groups of property as an asset class are retail, commercial, industrial, residential and international.
  • Vehicles for investing in property include, but are not limited to direct ownership, physical, property syndicated, shares on the Johannesburg Securities Exchange (JSE) including property loans stock (PLS), property unit trust (PUT), collective investments and investment through a life company.
  • Benchmarks include, but are not limited to, the real estate sector on the JSE, inflation rate, risk free rate, similar property investment or a tailored benchmark.
  • Types of risk include, but are not limited to, credit, interest, market and business risk and gearing.
  • Drivers include, but are not limited to interest rates, GDP, inflation, Government Policy, supply and demand, demographics, the legislation environment, lease maturity profile and escalation of rent in terms of leases.
  • Factors used to valuate property include, but are not limited to quality of tenant, escalations, period of remaining lease, quality of management and drivers. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain property as an investment asset class. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Property as an investment is contextualised within the investment universe. 

    ASSESSMENT CRITERION 2 
    Property as an asset class is classified in terms of the nature and grade of the property and an indication is given of the implications of each class for a portfolio. 

    ASSESSMENT CRITERION 3 
    The different investment vehicles for investing in property are explained with examples. 

    SPECIFIC OUTCOME 2 
    Interpret the risk and return of property as an investment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of return on property is explained with reference to capital fluctuation, yield and total return. 

    ASSESSMENT CRITERION 2 
    The types of risk associated with investment in property are explained and an indication is given of the vulnerability associated with the risk. 

    ASSESSMENT CRITERION 3 
    The risk on a specific property investment is assessed relative to other property investments. 

    ASSESSMENT CRITERION 4 
    The risk and return on a property investment is benchmarked against a benchmark appropriate to a specific client. 

    ASSESSMENT CRITERION 5 
    A decision is made as to whether the expected return on a specific property investment could compensate for the risk associated with the investment. 

    ASSESSMENT CRITERION 6 
    The tax implications in a property investment are explained for a specific client. 

    SPECIFIC OUTCOME 3 
    Assess the impact of the various drivers on the return of property investments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Drivers that impact on property as an investment are identified and an indication is given of the relative effect of each on an investment. 

    SPECIFIC OUTCOME 4 
    Demonstrate knowledge and understanding of how property is valued for investment purposes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The value of a listed property investment is ascertained from printed or electronic media. 

    ASSESSMENT CRITERION 2 
    Drivers used to valuate a property investment are named and an indication is given of how each factor impacts on the value. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in deciding whether the return on a specific property compensates for the risk and determining an appropriate benchmark. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in analysing the portfolio manager's style and applying different evaluation techniques. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the concepts contained in the unit standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in identifying drivers and indicating how different factors affect the value of a property investment. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 14524, "Demonstrate and apply knowledge and insight into property as an investment", Level 5, 3 credits.

    Search words: property, investments, asset classes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66089   National Certificate: Human Settlements Development  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  CETA 
    Elective  79626   Further Education and Training Certificate: Commercial Property and Facilities Management  Level 4  NQF Level 04  Reregistered  2023-06-30  SERVICES 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Boland Public FET College - Central Office 
    4. CKP Development Agency (Pty) Ltd. 
    5. COLLEGE OF CAPE TOWN 
    6. College of Cape Town - Central Office 
    7. False Bay College 
    8. Intec College 
    9. Masifunde Training Centre (Pty) Ltd 
    10. North Link College 
    11. Old Mutual Life Assurance Company South Africa 
    12. Ray Strodl Consulting (Pty) Ltd 
    13. Ripple Effect 4 (Pty) Ltd 
    14. Sanlam Life Insurance Ltd 
    15. Sanlam Life Insurance Ltd. 
    16. South Cape College 
    17. South Cape Public FET College - Central Office 
    18. The Institute of Health Risk Managers (Pty) Ltd 
    19. Umfolozi FET College - Central Office 
    20. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.