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 THAT HAS PASSED THE END DATE: 

Demonstrate and apply knowledge and insight into property as an investment 
SAQA US ID UNIT STANDARD TITLE
14524  Demonstrate and apply knowledge and insight into property as an investment 
ORIGINATOR
SGB Financial Services 
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
Passed the End Date -
Status was "Registered" 
2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

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 is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242576  Apply technical knowledge and insight into property as an investment  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who are financial planners or advisors or who are involved in product development and in giving information to intermediaries.

The qualifying learner is capable of:
  • Explaining property as an investment asset class.
  • Interpreting the risk and return of property as an investment relative to other asset classes.
  • Assessing the impact of the various drivers on return of property investments.
  • Determine the value of a property investment. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
  • The component sub-groups of property as an asset class are retail, commercial, residential and international.
  • Avenues for investing in property include, but are not limited to physical, syndicated, shares on JSE, property loans stock (PLS), property unit trust (PUT) property stock, unit trust fund 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, and market and business risk.
  • Drivers include, but are not limited to interest rates, GDP, the economy, inflation, supply and demand, demographics, the legislation environment and escalation of rent.
  • Evaluation techniques include, but are not limited to relative yield, capitalised yield, net asset value, replacement value, and valuation of asset by an independent evaluator.
  • Factors used by portfolio managers include, but are not limited to quality of tenant, escalations, period of remaining lease and quality of management. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain property as an investment asset class. 

    ASSESSMENT CRITERIA
     

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

    ASSESSMENT CRITERION 2 
    2. Property as an asset class is differentiated into component sub groups. 

    ASSESSMENT CRITERION 3 
    3. The component sub-groups are classified in terms of the grade of the property and an indication is given of the implications of the grade on a portfolio. 

    ASSESSMENT CRITERION 4 
    4. The different avenues for investing in property are explained with examples. 

    SPECIFIC OUTCOME 2 
    Interpret the risk and return of property as an investment relative to other asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The risk and return on a property investment is benchmarked against a benchmark appropriate to a specific client. 

    ASSESSMENT CRITERION 2 
    2. The risk on a specific property investment is assessed relative to other property investments. 

    ASSESSMENT CRITERION 3 
    3. The portfolio manager's investment style is analysed and matched to the client's profile and investment portfolio. 

    ASSESSMENT CRITERION 4 
    4. 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 5 
    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 
    6. The concept of capital fluctuation is explained with examples. 

    ASSESSMENT CRITERION 7 
    7. The concept of yield is explained with examples. 

    ASSESSMENT CRITERION 8 
    8. The concept of total return is explained with examples. 

    ASSESSMENT CRITERION 9 
    9. The tax implications in a property investment are explained for a specific investment. 

    ASSESSMENT CRITERION 10 
    10. A proposed property investment is analysed in order to identify gearing. 

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

    ASSESSMENT CRITERIA
     

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

    SPECIFIC OUTCOME 4 
    Determine the value of a property investment. 

    ASSESSMENT CRITERIA
     

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

    ASSESSMENT CRITERION 2 
    2. Three different evaluation techniques are applied to a property investment. 

    ASSESSMENT CRITERION 3 
    3. Factors used by independent evaluators who evaluate a property investment are named and an indication is given of how each factor impacts on the value. 

    ASSESSMENT CRITERION 4 
    4. The concept of lease maturity profile is explained and an indication is given of how this affects the value of the investment. 

    ASSESSMENT CRITERION 5 
    5. Additional factors used by portfolio managers to valuate a property are named and an indication is given of how each affects the value of the investment. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    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 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242576, which is "Apply technical knowledge and insight into property as an investment", Level 5, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  49196   National Certificate: Social Housing Property Development  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  PSETA 
    Elective  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    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. Azania Currency and Equity Markets 
    2. Chartall Business College 
    3. DC Dali Debt Counsellors 
    4. Duke 
    5. Felix Risk Training Consultants 
    6. Full Value Financial Services (Pty) Ltd 
    7. Injabulo Home Grown Learning and Development Solutions 
    8. Lotus Academy Pty Ltd 
    9. Maharishi Invincibility Institute NPC 
    10. Octopus Training Solutions 
    11. The Academy of Financial Markets 
    12. The Facilitation Workshop 
    13. The Institute of Literacy Advancement 
    14. UCS Education and Training Services (Pty) Ltd 
    15. Welltec Academy (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.