Question: Use the Capitalisation Method to value a freehold property let at full market gross rent of $20,000 per annum. Outgoings and vacancy rate are estimated

Use the Capitalisation Method to value a freehold property let at full market gross rent of $20,000 per annum. Outgoings and vacancy rate are estimated at 20% and 6% respectively of the market rent. The market yield is 5%.

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