Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is NOT an advantage of using a listed property trust to invest in property? Select one: q3 a. The ease of

Which of the following is NOT an advantage of using a listed property trust to invest in property?

Select one: q3

a. The ease of buying and selling listed property trusts.

b. Generally, the property trust prices trade close to their net asset value.

c. Listed property trusts react quickly to the liquidity cycle.

d. The high liquidity of the listed property shares

Which one of the following should increase the capitalisation rate for a specific property?

Select one: q5

a. A decrease in the long term government bond rate

b. The short-term market interest rate falls

c. A drop in the economic outlook for overall property sector

d. An improving outlook for rentals in that property sector

If a property was purchased for $200,000, using 80% debt at 6% p.a., net income $16,000 p.a., and its value increases by 3% in the first year, then the income return after 12 months is: q6

Select one:

a. 16.0%

b. 55%

c. 31.0%

d. 15.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions