Question
Real Estate Analysis: Assignment Details: As a property analyst, you are required to carry out a ratio analysis report for your client who has an
Real Estate Analysis: Assignment Details: 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.(The analysis must be real estate in Australia) 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 description information of the subject property. Part 2: Property Market You should give a description/analysis of the property market. This should be done at two levels. i. The first level is a review of key market fundamentals of Australia such as cash rate, GDP, inflation/consumer price index, unemployment rate, and population growth. ii. The second level is a review of key property parameters of the local market (i.e., the market of the subject property) such as vacancy rates, demand, supply, prices, rental, incentives, investment activity and yield.
Part 3: Mortgage Requirements i. You are also required to obtain information of your clients mortgage requirements. Identify the amount of loan that is required, term and repayment frequency and interest rate. Based on the information, calculate the loan/mortgage repayment. ii. You should compare mortgage payment of at least 3 lenders from which you will recommend one to your client.
Part 4: Ratio Analysis By utilising the collected data, conduct a detailed ratio analysis. A table consisting of all essential collected information is also expected. Part 5: Conclusion and Recommendation This section should provide a conclusion of the report. Your recommendation should be given.
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