Residential Property Project Analysis - Business Plan Example

UNIVERSITY OF SOUTH AUSTRALIA Assignment Cover Sheet Please check your Course Information Booklet for submission details including due date and extension allowances. . ADDRESS DETAILS (Externals must provide this for return of assignments - optional for internals) Full name: Address: Postcode: This assignment needs to be submitted through the online grade book system in learnonline. Student ID                 Email: Course code and title: BUSS 1055 Discovering Opportunities in Property School: Commerce Program Code: External  Internal  Tutor Name / Workshop time Assignment number: Project Further Information: (e.g. state if extension was granted and attach evidence of approval, Revised Submission Date)   I declare that the work contained in this assignment is my own, except where acknowledgement of sources is made. I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this will involve the University or its contractor copying my work and storing it on a database to be used in future to test work submitted by others. I understand that I can obtain further information on this matter at http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.asp Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement. Signed: Date: UniSA Property Plus Property Report Student Name Property Description PROPERTY ADDRESS: Windsor apartments, 188 Carrington Street, Adelaide, South Australia 5000, Australia Legal Description Title Reference: CT5908/437 Plan – Lot Reference: 14497 Proprietor/s in Fee Simple: Encumbrances: Zoning Instrument: South Australia (SA) Council Maps Current Zoning: City Frame Zone Heritage Status: Location-neighbourhood description Distance to (nearest in kms) City: 0.9 M Shops: 0.9 P School: 0.5 P Transport: 0.12 General Topography (describe): The area’s topography is dominated by a series of hills and parklands. The area is mostly dominated by the landscape of the city as Windsor apartments are within walking distance of Adelaide’s Central Business District (CBD) Key Socio-economic indicators (describe): There are a variety of affordable restaurants within the area. The proximity to public transport and market indicates that it is a middle socio-economic area Streetscape (describe): The street is an urban one with each apartment with a balcony overlooking various views of the city. Site is easily accessible as it is a walking distance from the CBD, and has easy access to public transport. The apartments are on Carrington street which is also easily accessible and navigable, found at the confluence of major streets, that is Bewes, Carrington and Eden streets. Adjoining/Surrounding Land-uses (describe): The area is home to a variety of Universities, award winning restaurants, cafes, and hospitals. It is also a walking distance to the market and public transport. Relative property marketability (describe): Highly marketable owing to its high affordability, excellent services, and the proximity to the CBD, and public transport Land description Site Area (Sqm): 3,743.2 Sq Meters Topography/Accessibility The area is relatively level, not sloping/undulating. Orientation/Aspect: Uphill lot, permanent summer sun exposure on the side of the building facing away from Carrington street which is suitable for use of solar panels for water heating and/or electricity generation. Suitable for pool and tennis court facilities Allotment Type/Shape: The building is a T-intersection lot type View/Outlook (describe): The view depends on the apartment, but views are generally of the street they overlook on one side, and of the tennis court on the other side. Mains Services: Water  Sewer  Electricity  Gas  HS Broadband  Main Building description # Main Rooms 5 # Bedrooms 2-3 # Bathrooms 2 # Undercover carparks On request Built About # Living rooms 1 Dining room 1 Gross Building Area 3,743.2 Sq Meters Attach/Storeys five Style Conventional style Main Outer Wall Brick vineer Main Internal Lining Timber drywall (plaster bard) Roof Cladding Corrugated steel roof Window Frames: aluminium Internal Condition good External Condition: excellent Renovation/Repairs (describe) Modernized tennis court completed in April 2014 Features (describe) Fully equipped laundry, full kitchen facilities, heating, insulation, air conditioning, spacious lounge and dining, 2 bathrooms in select apartments, modern designer furnishings Site Features Features (describe) On-site reception, complementary, secure carparking, equipped with a sauna, spa, outdoor heated swimming pool, gym facilities, and full size tennis court, common room, outdoor courtyard and barbeque area. Garden (describe) Site has trees that provide shade in substantial areas such as near the tennis court, well groomed and neatly presented garden beds, clean paved areas. Photographic Images of Property (Taken by the Author) Streetscape and Outlook Site and Building Exterior Building Interior Kitchen and Bathroom Building Interior Living and Bedroom Marketing Opportunity Appraisal of Subject Property A single unit is appraised at the value of around $385,000. This figure is subject to increment depending on the number of bedrooms and bathrooms, age, condition, and view of unit. Method of sale Online sale is the most appropriate method to go about sale of an apartment in this building. Target market has online access, and most searches for a serviced apartment near CBD are usually conducted online. An online real estate agency is therefore the best choice to conduct sales for the apartments. Marketing and Advertising Online marketing will be the most appropriate method of sales because sales are also conducted mainly online. Advertisement will be done online and therefore advertising budget will be relatively affordable/low. Online advertisements will be placed on relevant and related websites such as those on touring South Australia, particularly Adelaide. A website will also be set up for the building showcasing pictures, and features to ease view and make it easier for shoppers to decide. Budget will be relatively low; around $1000 Investment / Development Opportunity Income potential Windsor apartments are quite suitable for long or short term leasing because of a number of factors including their proximity to the CBD, ease of access by public transport and their relatively affordable cost. Development Opportunity The property can be further developed by increasing the number and quality of services provided, by improving customer service for example and setting up systems to collect honest and timely feedback so as to improve based on customer reviews as a way of increasing customer satisfaction and increasing demand. Investment Analysis OR Feasibility Analysis The apartment is purely residential and therefore is appropriate for rental purposes. Secondary investments can be considered by tenants if the lease agreement allows it, or by owners as long as they do not violate the terms and conditions. Since the property is a block of units and the land has been developed as well as it should be, there is little opportunity for further real estate development, and this section shall therefore concentrate on the property’s investment opportunity. Investment Value Evidence Based Estimate of probably rental and investment value. Refer to online instructions on the DOP learnonline page under Assessment Material - Project (enter your material and delete this line). Units are currently renting at prices between $225-$310 depending on the number of bathrooms, bedrooms and facilities available for a minimum 5 night stay on short term lease. They are also available for longer term rent as well as for sale. Appendix Appendix Read More