My rent is in EstateMaster IA, but the current capitalisation calculation excludes it. The Current Capitalisation Rate is 0%. Is that relevant?
propfessor.Companion exampleThe short answer
Yes. In the documented IA 3.40 workflow, a 0% Current Capitalisation Rate excludes that use’s income from the current capitalisation calculation. It is not a neutral placeholder. The Terminal Capitalisation Rate has a separate exclusion effect for the terminal calculation.
Excludes this use’s income
from current capitalisation
Excludes this use’s income
from terminal capitalisation
Read the software’s treatment before interpreting the result.
Work through it
- Identify the relevant use in Setup Uses.
- Inspect Current Capitalisation Rate for a current-value issue, or Terminal Capitalisation Rate for a terminal-value issue.
- Confirm the intended valuation treatment. If inclusion is intended, use a supported assumption approved for the appraisal, then recalculate and check the relevant result.
| Setting at 0% | Documented effect |
|---|---|
| Current Capitalisation Rate | Excludes that use’s income from current capitalisation |
| Terminal Capitalisation Rate | Excludes that use’s income from terminal capitalisation |
No capitalisation rate is recommended here. This example explains a software input’s effect, not how to value a property.
You know which input to inspect without deleting and re-entering valid rent.
Does this remove the income from every calculation?
Do not assume that. The documented behaviour concerns the corresponding capitalisation calculation. Check the cash flow and other outputs separately.
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