QUESTION 1 Property development is all about minimising risk or managing risk for the highest gain. Identify five (5) different risks and explain why a property developer needs to consider them in the development process. In the development of a risk assessment matrix attribute a likelihood rating of the risk happening and how you might mitigate its affects on a development.QUESTION 2 Prior to the purchase of any development site a developer needs to conduct a thorough site analysis. What are the steps involved in the investigation of a site. Describe what needs to be done at each stage of the development process. Using examples include ramifications on the final outcome if this stage is mishandled.QUESTION 3 A potential development site is subject to a Minted Use Zone 1, a Design and Development Overlay. an Environmental Audit Overlay. a Land Subject to Inundation Overlay. and a Developer Contribution Overlay. Discuss what each of these overlays means any potential development. Select any 4 of the zones and or overlays and explain in details the implications of each of these zones and overlays have in the development. QUESTION 4 Using a hypothetical development model (also referred to as residual model) determine the price you can offer to pay for the vacant site after incorporating the following data. The details for the development are provided in the table below, prepare a residual model, showing all calculations, to advise the developer of the maximum monetary amount you would bid for land based on the information given and achieving the developers' profit and risk level of 20%.Data Available Assessed Values Number of apartments 4 One bedroom units (55sqm) $425,000 @ unit 10 Two bedroom Units (90sqm) $610,000 @ unit 5 Three bedroom Units (125sqm) $750,000 @ unit Sales Commission and 3.0% Marketing Conveyancing fees and $650 per sale disbursements' Sales period 12 months Building efficiency 75% Site preparation Demolition $40,000 Environmental remediation $100,000 Professional fees on building 8% costs Construction period 14 months Design and documentation 18 months and permits Short term finance 14% per annum Building costs $1,800 per square metre of gross floor area Statutory fees $50,000 Land purchase expenses 6% stamp duty and $1,500 legal fees Contingency 5% Further or missing data Make reasonable assumptions and state them in your answer Municipal contribution fees 2.5% of land value Electricity supply fees $1,500 per unit Water supply fees 1.25% of land value Sewerage connection fees 850 per unit Open Land-space Either 5% of land area or 5% of land value paid in lieu of contribution vacant land