Question
As a property analyst, you are required to carry out a ratio analysis report for your client who has an opportunity to purchase an income-producing
As a property analyst, you are required to carry out a ratio analysis report for your client who has an opportunity to purchase an income-producing property in Sydney. You must identify an income-producing property and obtain the information for the property as follows:
a) Property Data- asking price of the property, purchasing costs-legal fees etc.
b) Income Data-vacancy rate, current rent, operating expenses (outgoings) etc.
There are 5 major parts of this report:
Part 1: Introduction You should provide the identification of the property. It includes the description information of the subject property.
Part 2: Property Market You should give a description/analysis of the property market. This would include items such as vacancy rates and demand, rental and incentives and investment activity and yields.
Part 3: Mortgage Requirements You are also required to obtain the information of your client's mortgage requirements. Identify the amount of loan that is required, term and repayment frequency and interest rate. Based on the information, calculate the loan repayment.
Part 4: Ratio Analysis By utilising the collected data, conduct a detailed ratio analysis. A table consists of all essential collected information is also expected.
Part 5: Conclusions This section should provide a conclusion for the report. Your recommendation should be given.
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