My rent is in EstateMaster IA, but the current capitalisation calculation excludes it. The Current Capitalisation Rate is 0%. Is that relevant?
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.
See the steps and a follow-up question
- 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.
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.
Read the complete worked example