Property Potential and Marketability - Case Study Example

Project Management Course Professor’s Name Name of the Institution Date Property Potential and marketability Legal Issues It is the work of the government to provide legal framework that guides the real estate development. Some of these laws include the registration of deeds like the establishment of the chain of tittle, insurance of ownership among others activities. The property discussed here is real property which refers to land and everything which is attached to it. These include land which is the wedge from the center of the earth and heaven. The fixed objects which are buildings. They give the owners the appurtenant rights. There are various rights attached to these houses which include fee ownership and the highest form of ownership is simple ownership while the ones which are owned subject to certain limitations like the tittle deed restriction is normally said to be held in fee simple qualified. Other rights which are subjected to the real estate include:- The right to occupy the property. The right to sell it. The right to exclude others. The right to borrow against it. The right to convey ownership by gift or inheritance From the study in the rental houses in part 1 above, these basic rights were established before the data was collected and either one of the above rights were ascertained. Location and Neighbourhood Issues Some of the neighborhood issues include where the building is located which in this cases is urban centers with high growth rate and increase in property values which is continuously increasing. The demand of the hose in this neighborhood is high security as the main drivers of the demand. In the neighborhood, the houses are owned by the fee owners and there are no vacancies in the area as the population is densely populated with most transport as private followed by public transport system available in the neighborhood. On the factors that could influence quality like public services facilities like schools are not present in the area but averagely, there is no room for expansion as the most people living in the area are privately living. There is a supermarket in the neighborhood. Income level is high with average income of $913 per week. The mobility rate is high since averagely every house hold is having a car for movement with average. There is little government influence in the area as administration post are not near the area though with various public amenities. The area is under development and growth stage with average income, most families living in this areas are young families which have not reached self-actualization but young professionals. Land, Building and Site Feature Issues. The property in the neighborhood compared with this property, they have more similar characteristic with spacious rooms giving the necessary comfort to the occupants of the building. They have similar standards within the neighborhood with little or no noise odors coming from the neighborhood. The topography is good and high level of privacy as shown in the statistics in part one. There is one bedroom houses, two bedroom houses and three bedroom houses in the area and four bedrooms. One bedroom forms 4.7%, 2 bedroom gives 19.1%, three bedroom gives 43.6%, while four bedroom forms 30.3% and some elements of bedsitter which is less than 1% within the area. The number of house owners is the highest at around 34% of the total occupancy in the area. In the neighborhood, the bedrooms, living area and kitchen are good well spaciously with reasonable covered car parks. In the house build, belong a car park by every units. Every room have one air condition, total 4 air conditions. There are public clothes hanger in the outside which are used to hang clothes by residence in the area. Small public lawn is available for recreational activities within the estate which also act as garden. Overall Marketability In general the real estate under discussion here are mostly 45% are individually with various rights attached to them. The demand of the hose in this neighborhood is high security as the main drivers of the demand. In the neighborhood, the houses are owned by the fee owners and there are no vacancies in the area as the population is densely populated with most transport as private followed by public transport system available in the neighborhood. The property in the neighborhood compared with this property, they have more similar characteristic with spacious rooms giving the necessary comfort to the occupants of the building. They have similar standards within the neighborhood with little or no noise odors coming from the neighborhood. The topography is good and high level of privacy as shown in the statistics in part one. This makes them more marketable due to high standard exhibited with the design and the neighborhood environment around it. . MARKETING OPPORTUNITY APPRAISAL OF SUBJECT PROPERTY We will use the sales comparison approach in evaluating and appraising the real estate in this case. This method is based on the principle of substitution which is simple and direct way of evaluating residential properties. The sales must be arm’s length open market transaction (in other words there is no relationship between the parties that may have impacted upon the sale Price or not). An example would be a sale between family members. In general, sales which are most recent are the most useful to be used in this case. In Darebin Street, the sales goes at around $ 245,000 to $ 260,000 while in Sydney, the highest goes up to $ 375,000. Due to favorable prices and close proximity to social amenities like schools and roads, there is high sales in the Darebin streets. Therefore we can conclude that social amenities are some of the factors that influence the price, cost and the rate of sales of real estate. Sales are being done by the agent like insurance companies, banks among other people and there are proper agency laws that have been enacted by the state to ensure that the transactions in real estate sector is legally supported. METHOD OF SALE / AGENCY TYPE The sales in real estate market mostly depends on the agents which helps in facilitating the sales of the property in the sector. Since the property market operates within regulated legal framework, there is changes to law and regulations which are regular. The agency helps in sales, leasing and consultancy services and they are being paid fees. They help to manage the property on behalf of their clients, play role in the design of retail and commercial property and rentals buildings. The agency type used to sale property here is exclusive agency listing. Here, the real estate agent sell the property on your behalf. Within an exclusive agency agreement one has several options that can be used and they include tender, private sales, auction and the expression of interest. This method was chosen because in most cases they sale faster and at the best price. It was recommended over the listing method simply because the sales of the property is in the hands of only one party. The exclusive agency has been used widely across the Australia and is the most preferred type of agency relationship in the real estate. Listing has also been used by some people but not most preferred. MARKETING AND ADVERTISING The agency does the work of marketing and advertisement where various methods are being used. First the agency uses online sales and marketing strategy where pictures of various houses are placed and customers may access and have a view of the houses online, negotiate the price and even pay online. Email marketing is another important approach which are being used and random emails are send to various potential customers. Advertisement with bill boards along busy roads are being done and this helps in creating much awareness on the availability of a given property in a given location at a given time. The advertisement are further done on televisions during prime time and radios where various promoters are being paid to do the job. Sales incentives are also being utilized by agents through discounts, instalment payments among other strategies to help in marketing the property. buying and selling buy deadline sales has also been utilized in ensuring success in increasing sales among real estate agents. The selling budget for the company is around $ 2000-$5000 per month with radio advertisement taking most of the budget, followed by bill boards and others follows. Online advertisement are being done daily and this also help in increasing customer data base. INVESTMENT / DEVELOPMENT POTENTIAL LEASING POTENTIAL Since the area is mostly dominated by individuals who have bought the houses and they are the owners of the houses. Very few people have shown interest in leasing out the houses and the chances are very minimal since most of the houses under the study are rentals. Leasing is common in the business premises while the area under focus is residential houses which makes leasing unpopular. From the sales data, there are only 2% of the houses which has been placed under lease giving leasing low rating compared to rentals and the selling of the houses. In the spirit of satisfying the agents, houses should just be sold house to potential buyers as opposed to leasing them out. DEVELOPMENT POTENTIAL There is high potential of growth and development in this area given that the area is in suburb where the land is still available and social amenities like roads are coming up in high numbers. Most middle class people from the income data have invested a lot in this area and this giving it a competitive edge in the development market INVESTMENT ANALYSIS OR FEASIBILITY ANALYSIS Investment Analysis Using the gross income multiplier (GIM) which is given by GIM= Current value/Gross income of the property. If the Current value is $ 245,000 while gross income is $ 9500 then GIM = 245,000/9500 = 26. This gives the potential of the investment very high and investment potential are very high which is an alert to investors in the real estate sector. The Net operating income also gives a positive potential and indicator which is $ 30,000 per month which is a good boost and return for any investment. Feasibility Analysis From the analysis, modern suitable sustainable houses is very necessary in this area to attract people from different economic level. These kind of apartments are able to accommodate many people and are affordable. They are eco-friendly and utilizes the modern technology in its operation and development. There is need to establish market rental then investment “worth”. The residential property in the area are in high demand. Older retired residents and younger families should be targeted. Regional townships - short term workers are some of the people should be targeted. Other targeted markets include:- Strong rental market, retirees & single workers Secondary Summer rental market – Ignored The preference for town Centre - premium paid Land sizes similar - no development potential. Bedrooms, main area, age and construction References  2016, viewed 18 September 2016, 2011 Census QuickStats: Cowandilla 2016, viewed 18 September 2016, . 5/236 Sir Donald Bradman Drive, Cowandilla, SA 5033 - Property Details 2016, viewed 18 September 2016, . 3/236-238 Sir Donald Bradman Drive, Cowandilla, SA 5033 - Property Details 2016, viewed 18 September 2016, . 1/75 Tait Street, Renown Park, SA 5008 - Property Details 2016, viewed 18 September 2016, . 10/174 Barton West Terrace, North Adelaide, SA 5006 - Property Details 2016, viewed 18 September 2016, . 6/97 Childers, North Adelaide, SA 5006 - Property Details 2016, viewed 18 September 2016, . 7/39 Kingston Avenue Richmond SA 5033 - Unit for Sale #123208414 - realestate.com.au 2016, viewed 18 September 2016, . 14/63 Western Parade Brooklyn Park SA 5032 - Unit for Sale #123537354 - realestate.com.au 2016, viewed 18 September 2016, . 8/1A Darebin Street Mile End SA 5031 - Unit for Sale #123486386 - realestate.com.au 2016, viewed 18 September 2016, .  3/450 South Road Marleston SA 5033 - Unit for Sale #123041954 - realestate.com.au 2016, viewed 18 September 2016, Sep, M 2016, 7/40 Le Hunte Street Wayville SA 5034 - Unit for Sale #123520670 - realestate.com.au, in , realestate.com.au, viewed 18 September 2016, . 8/444 Sir Donald Bradman Drive Brooklyn Park SA 5032 - Unit for Rent #419346538 - realestate.com.au2016, viewed 18 September 2016, .  1/6 Kent Road Keswick SA 5035 - Unit for Rent #418684866 - realestate.com.au 2016, viewed 18 September 2016, Sep, T 2016, 6/69 Bosanquet Avenue Prospect SA 5082 - Unit for Rent #419034982 - realestate.com.au, in , realestate.com.au, viewed 18 September 2016, . Sep, M & Sep, T 2016, 3/18 Lamont Street Croydon Park SA 5008 - Unit for Rent #419217566 - realestate.com.au, in , realestate.com.au, viewed 18 September 2016, . 45/87 Mary Street Unley SA 5061 - Unit for Rent #419177262 - realestate.com.au 2016, viewed 18 September 2016, . Location SA Viewer 2016, viewed 19 September 2016, . Read More