Business Finance: Financial Planning for Property Purchase

Running head: BUSINESS FINANCE
Business Finance
Name of the Student:
Name of the University:
Authors Note:

BUSINESS FINANCE
1
Table of Contents
Answer: (Question 1).................................................................................................................2
Answer: (Question 2).................................................................................................................2
Answer: (Question 3).................................................................................................................3
Answer: (Question 4).................................................................................................................4
Answer: (Question 5).................................................................................................................5
Answer: (Question 6).................................................................................................................7
Answer: (Question 7).................................................................................................................8
Reference and Bibliography:......................................................................................................9

BUSINESS FINANCE
2
Answer: (Question 1)
Year
0
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Year
10
Year
11
Year
12
Year
13
Year
14
Year
15
Year
16
Year
17
Year
18
Year
19
Year
20
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$3,500.00
$977.50
$2,886.47
Forecasting price for property in Sydney
With the help of above figure relevant future property price of Sydney housing could
be identified, which might help in drafting the overall financial plan. This would eventually
help in detecting the level of savings, which is needed by the client for supporting its
Austrian dream. The future prices is mainly calculated with the help of averages, where the
three year average price of the property is used to detect the level of price changes incurred in
the property price. This detection of the price change would directly have an impact on the
future prices, which is essential in understanding the level of savings and property value,
which could be detected in future (Baur & Heaney, 2017).
Answer: (Question 2)
Year Weekly Income
Yearly
Income
Three Year
Average
Price
change
1994–95
$
642
$
33,384
1995–96
$
626
$
32,552
1996–97
$
648
$
33,696 33,211
1997–98
$
664
$
34,528 33,592 1.15%
1999–2000
$
692
$
35,984 34,736 3.41%
2000–01 $ $ 3.04%

BUSINESS FINANCE
3
709 36,868 35,793
2002–03
$
726
$
37,752 36,868 3.00%
2003–
04(a)
$
806
$
41,912 38,844 5.36%
2005–
06(a)
$
870
$
45,240 41,635 7.18%
2007–
08(a)
$
994
$
51,688 46,280 11.16%
2009–
10(a)
$
981
$
51,012 49,313 6.55%
2011–
12(a)
$
1,015
$
52,780 51,827 5.10%
2013–
14(a)
$
1,046
$
54,392 52,728 1.74%
2015–
16(a)
$
1,070
$
55,640 54,271 2.93%
Average 4.60%
Year
0 Year
1 Year
2 Year
3 Year
4 Year
5 Year
6 Year
7 Year
8 Year
9 Year
10 Year
11 Year
12 Year
13 Year
14 Year
15 Year
16 Year
17 Year
18 Year
19 Year
20
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$80.00
$196.72
Forecasting growth of Clinet
The evaluation of above graph helps in understanding the level of income growth
which will incur by the client in 20 years’ time. The income growth calculation is mainly
valued with the help of average valuation, which is obtained by the salaried persons in
Sydney. Therefore, the calculation is mainly conducted with the help of previous 20 years of
income that is generated by salaried person in Sydney, which could help in understanding the
level of income. The income of client is anticipated to increase from $80,000 to 196,720 in
20 years’ time, which will be helpful in drafting the financial plan. This financial plan would