Assume Louise has inherited a large sum of money and wish to use it to make a real estate investment. She is a working professional in her late 30s.

a. Would you recommend her to invest in income property or speculative property? Why? Describe the key characteristics of the income or speculative property on which she would focus her search. (5 marks)

b. Louise has studied economics and knows about demand and supply, yet she doesnt understand how to apply them to an investment analysis. Advise Louise in a practical way, how she might incorporate demand and supply into an investment analysis of property investment? (8 marks)