Analysis of the Property Industry - Assignment Example

DOP-Assignment Template By student’s name Course code +name Professor’s name University name City, state Date of submission UniSA Property Plus Property Report Student Name Property Description PROPERTY ADDRESS: 4/39 hilltop ave felxistow SA 5070 Legal Description Title Reference: CT5799/688 Plan – Lot Reference: 128099-65 Proprietor/s in Fee Simple: Encumbrances: Zoning Instrument: Current Zoning: Residential 2A Heritage Status: Location-neighbourhood description Distance to (nearest in kms) City: M Shops: P School: P Transport: General Topography (describe): Key Socio-economic indicators (describe): Streetscape (describe): Adjoining/Surrounding Land-uses (describe): Relative property marketability (describe): Land description Site Area (Sqm): 841 Topography/Accessibility Orientation/Aspect: Allotment Type/Shape: View/Outlook (describe): Mains Services: Water  Sewer  Electricity  Gas  HS Broadband  Main Building description # Main Rooms 3 # Bedrooms 2 # Bathrooms 1 # Undercover carparks 1 Built About # Living rooms 1 Dining room 1 Gross Building Area Attach/Storeys 1 Style Unit Main Outer Wall Main Internal Lining Roof Cladding Window Frames: aluminium Internal Condition External Condition: Renovation/Repairs (describe) Features (describe) Site Features Features (describe) Garden (describe) Photographic Images of Property (Taken by the Author) Streetscape and Outlook Site and Building Exterior Building Interior Kitchen and Bathroon Building Interior Living and Bedroom Marketing Opportunity Appraisal of Subject Property Research has shown that the reals estate and property market is trying to come out of GFC where credit as well as buoyancy in the industry is expected to emerge fully. There is essential confidence in the property industry, and UniSA Property is adapting to the growing importance of the green buildings and green developments (Virginia real estate commission., 1971). That is there is need for innovation in delivering green developments and greater rules. For example, disclosure requirements for building energy efficiency. This form of investment has lead to great competition  and huge cash flow especially in the Australian property market. UniSA Property is surrounded with opportunities based on existing projects, and projects which are still on the drawing board, which are influenced by the huge cash flow in the industry. In any business market opportunities are underlined through a market analysis. The analysis can be subdivided into total market and segment. The analysis of the real and property total market can adapt a collective perspective (Virginia real estate commission., 1971). The evaluation is based on the UniSA Property space supply, demand and development and the vacancies together with the pinnacle rent of the market. On the other hand the market segment is based on a desegregated market point of view. The main area is the geographic and typological market segments. An assessment of supply that is differentiated should be implemented. Some other areas that require implementation is demand, space, vacancies and the rents of the object-specific rents should be implemented (Follain, 1986).The best methods can be on quantitative or qualitative way, or a combination of both. Again on the market opportunity there is still a set of investment in major projects and infrastructure that UniSA Property is targeting to invest in them in order to increase on its market share in this industry. For example, the tourism sector is an innovative area which contains some interesting projects in it. It is also note able that there are also foreign investors who are willing to invest in this industry giving UniSA Property confidence, and anticipated success in this kind of investment (Follain, 1986). Method of sale The process of buying and selling a home is a complex, and time consuming task. For example, signing an Agency Agreement that contains an estimate of the property total fees, charges and operating cost is one of the complex features. The most important appropriate property selling method is through the uses of agents , who aids in the selling process such as negotiations and final sale of the property. Features such as the total fees, charges, and expenses estimates are important features in this case because they act like security features used by agents (Virginia real estate commission.,1971). Selling properties through an agent is an important method because it will help in the determination of proper budget sale. The process also reduces some costs such as advertising and market research which are mostly left under the agents responsibility. Therefore, accurate budgeting are crucial aspects in the selling process. The sale agreement should also be read carefully in order to understand it and determine whether in concedes with the sale obligations. Marketing and Advertising In the today’s versatile real estate environment, a marketing plan that is good is an important aspect and includes numerous forms of advertising. Good marketing plan and advertising is aimed at yielding the highest possible property. To achieve this goal there are various outlets that can be chose from. Moreover, there are several marketing plans that include a combination of the following. One of these methods is online marketing, which includes online listings mostly on real estate websites, lead capture forms, blogging niche real estate forums among others (Ventolo, & Williams, 2008).. Use of social networks is also an appropriate marketing and advertising strategy because it is possible to reach a large group of existing and potential customers at a reduced cost .Real estate and property industry is business that has not fully picked in the market , therefore extensive market and advertising plan s are highly recommended. Advertising through the print media is another alternative. This includes use of traditional print media advertising methods, which includes placing adverts in fanatical property magazines, local newspaper listings and promotional articles. Use of word of mouth can also aid in the marketing process. This method may include office presentations or referrals strategies. Investment / Development Opportunity Income potential It is note able that once a property in is carefully selected it offers a strong prospective for investment and relocation purposes. UniSA Property is highly selected and it is able to offer a potential capital growth with an aim of meeting the growing demand especially for new properties (Ventolo, & Williams, 2008). It is clear that availability growth of apartments units has been dramatic making off plans to be one of the most profitable option in property investment. Returns of about 30.6% and 42% are some of the key locations in the potential income nature of the property( Ventolo, & Williams, 2008). According to history the real estate that has been performing best on the basis of capital growth has been located within the cities. It is easy to gain substantial profit by purchasing of the property with a minimum out and small capital outlay. The potential income that the property can be able to raise is adequate enough because of its strategic position. The accommodation fees in the property are also considerate and affordable. The operations cost is reduced helping in profit maximization. Development Opportunity Real estate or property industry is growing rapidly. One of the contributing factors is peoples relocations to other places in the world. Therefore, the demand for houses is increasing too. The supply that is available in the market does not fully satisfy the increased demand(Institute for research, 1998). It is important to address these deficits by increasing the number of houses available in the market. Another development opportunity is on renovating the available properties in order to make them accommodating to the growing demand. Investment Analysis OR Feasibility Analysis Investment Value It is not advisable to pay more than 10% premium to the value of the property in the market. Before paying a premium that is above 10% its is advisable to compare the property value with that of the neighbourhood. The best property investment is the one that has a 20% discount. Again on the investment the value of real estate is likely to fluctuate within a short period of time where in the long run rental values are likely to drive the value of the property(Institute for research, 1998).. The average investment value in this case is estimated at 1% above Treasury bonds, which is in line with the real estate stocks since 1990.It is clear that the Treasury bond is at 5.15% indicating that the nationwide average net rent is 6.15%. This 6.15% is the “earnings-to-price” ratio, hence, there is need to get the converse of it for the P/E of UniSA Property house. Feasibility The Feasibility of the property is aimed at uncovering the weaknesses and strengths of the property. The resources required are also underlined through a feasibility study, and the ultimate prospects for its success. Therefore, the two main factors to judge the feasibility of this property is the project cost and value to be attained from the property(Institute for research, 1998).UniSA Property operation cost are reduced because of its strategic position. It is situated in a region where demand for houses is projected to raise as a result of relocations and other factors. All the tax obligations have been met effectively showing a clear indication of the properties success. This information is important because the feasibility done on the property has been credible by both investors and lending instructions(Institute for research, 1998).. The study will help in the future development of the property with an objective, and unbiased approach that will provide a clear information on the decision to be made. Appendix Appendix Reference List Institute for research (Chicago, ill.). 1998. Property and real estate management careers. Chicago, Institute for Research. Virginia real estate commission. 1971. Manual for Virginia real estate brokers and salesmen. Richmond, Dept. of Purchases and Supply. Ventolo, W. L., & Williams, M. R. 2008. The art of real estate appraisal: the complete guide for homeowners and real estate professionals. New York, Kaplan Pub. Follain, J. R. 1986. Tax reform and real estate. Washington, D.C., Urban Institute Press. Read More