Instructions

FNCE 625 - Investment Analysis and Management

Group Project - Case Study Guideline

Introduction:

In this group assignment, each team will collaboratively make a comprehensive report and accompanying PowerPoint presentation to address the concerns of a prospective investor. As an investment advisory group, your task is to provide insightful guidance to the investor who is an immigrant settling in the Great Vancouver Area with $1 million (CAD) in available funds. The report and presentation should address the investor's key questions and concerns regarding investing in residential property in the area.

Case Scenario:

Your team has been engaged by an investor who is an immigrant in the process of settling down in the Great Vancouver Area. The investor has Cnd$1 million in cash on hand, of which the bank can provide a loan for up to 65% of the property value, with a maximum total loan amount of Cnd$2.5 million. The investor's primary questions and concerns are as follows:

Viability of Investing in Great Vancouver Area Residential Property:

Analyze whether investing in residential property in the Great Vancouver Area is a worthwhile endeavor. Provide a projection of expected returns over the next 5-7 years, and highlight the key factors that should be taken into consideration when making this investment decision.

Illustration of Investment Return:

Use a specific example to demonstrate to the investor that a particular property and location in the Great Vancouver Area would be a favorable choice. Illustrate the potential return on investment using this example.

Identifying Major Risks:

Outline the major risks associated with investing in residential property in the Great Vancouver Area. Thoroughly examine these risks and provide insights on how they can be managed or mitigated.

Tips and Guidelines:

• Consider the prevailing interest rates and exchange rates, and utilize the research resources discussed in the classroom setting.
• The written report can adopt a formal investment memo format, featuring key bullet points for clarity.

Report and Presentation Format:

Introduction: Briefly introduce the investor's situation and the objectives of the report and presentation.

Viability of Investing in Great Vancouver Area Residential Property: Provide an in-depth analysis of the investment potential, expected returns, and critical considerations for investing in the area.

Illustrative Example of Investment Return: Present a specific property example, detailing its type, location, potential return, and rationale for selection.

Identification and Management of Major Risks: Thoroughly explore the significant risks associated with investing in residential property in the Great Vancouver Area and propose strategies for risk mitigation.

Conclusion: Summarize the key points discussed in the report and emphasize the recommendations provided to the investor.

Submission:

• The written report should not exceed words and should be submitted in PDF format.
• The PowerPoint presentation should have a maximum of 12 slides.
• One submission from each team is enough.
• Both the report and presentation link should be submitted by [Date].

By successfully addressing the investor's concerns and providing well-founded recommendations, your team will demonstrate proficiency in investment analysis and advisory skills. Remember to utilize the resources and strategies discussed in class to enrich your analysis and enhance the value of your guidance.