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 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/mortgage repayment.
ii. You should compare mortgage payments 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.
Step by Step Solution
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Step: 1
ANSWER PART 1 INTRODUCTION The subject property is an incomeproducing property located in Sydney Australia The property is currently on the market for ...Get Instant Access to Expert-Tailored Solutions
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