VDH MASTERCLASS
Income Capitalisation Method
A focused masterclass on applying the Income Capitalisation Method in practice — from net operating income to the selection of a defensible capitalisation rate.
R2,500 once-off
VDH Members pay R2,000 — contact us for your discount code
Includes the full recording and course materials for Income Capitalisation Method.
What’s Covered
A full 3-hour, case-study based walkthrough of the Income Capitalisation Workbook, applied step by step to a real multi-tenanted property.
1. Welcome & Orientation — 10 min
The workbook overview and the “Big Five” framework (IGU, PGI, Vacancy, Expenses, Cap Rate), plus an introduction to the subject property.
2. Income Generating Units (IGUs) — 25 min
Defining IGUs, common structuring mistakes, and building the IGU schedule from the subject property’s floor plan.
3. Potential Gross Income (PGI) — 35 min
Market vs contract rentals, rental evidence and adjustments, and constructing the PGI schedule.
4. Vacancy & Normalised Gross Income (NGI) — 55 min
Vacancy as income loss, using Rode/SAPOA data as benchmarks, and deriving NGI for the case study.
5. Property Expenses & Net Operating Income (NOI) — 25 min
Operating expenses vs CAPEX, expense benchmarking and red flags, and calculating NOI.
6. Capitalisation Rate & Value — 30 min
What the cap rate represents, triangulating evidence, and capitalising NOI to derive value.
7. Sensitivity Analysis, Defensibility & Q&A — 20 min
Sensitivity testing, understanding valuation robustness, and how to present and defend the outcome.
Course Content
A VDH Member page
Income Capitalisation Method is included in VDH Membership — from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.