Analysis Period
Specify the time frame to evaluate the model
Financial models are an analysis of the future benefits of owning a property within a set time horizon, It requires both an Analysis start and an Analysis term, defined either as a specific Analysis end date or a Duration. The Analysis start will often coincide with a Purchase date, but it doesn't necessarily have to. Similarly, the Analysis end doesn't need to coincide with the intended Sale date.
Setting the analysis period
Add the analysis period to the model by selecting "Add analysis period" and complete the associated form. The analysis period can be overridden in both reports and at the portfolio level. It is recommended financial events are not tagged to these dates. An empty analysis period will default to the first of the following month from the time the model is run and will proceed for a period of ten years.
Analysis start
The first day of the analysis period, inclusive. This will often coincide with the purchase date of a property. It is recommended that this date be the start of a reporting period, ex. January 1st.
The analysis start can be overridden in reports and is often overridden at the portfolio level. When modifying the analysis start date, it is important to check the impact of cashflows that may be tied to the timing of this event or to decouple the timing.
Analysis term
Defines how the analysis duration should be input.
- Date
- Allows the inclusive end date of the analysis to be entered. It is recommended this date ends on a standard reporting period end. Example: December 31st.
- Duration
- The duration of the financing term in years and months. The calculated end date will be inclusive to the period. Example: two years from January 1st, 2400 will end December 31st, 2401.
Duration
The last day of the analysis period. It must be at least one year after the start of the analysis period and ideally terminate on the last day of a standard reporting period.
End date
The number of years and months included in the analysis period.