Business Finance: Property Valuation, Income Growth and Loan Acquisition

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

BUSINESS FINANCE
1
Table of Contents
Answer for the Question 1:........................................................................................................2
Answer for the Question 2:........................................................................................................4
Answer for the Question 3:........................................................................................................6
Answer for the Question 4:........................................................................................................7
Answer for the Question 5:........................................................................................................8
Answer for the Question 6:......................................................................................................10
Answer for the Question 7:......................................................................................................11
Reference and Bibliography:....................................................................................................12

BUSINESS FINANCE
2
Answer for the Question 1:
Year Price Five Year Average Price change
2002 262
2003 293
2004 309
2005 321
2006 345 306
2007 372 328 7.21%
2008 389 347 5.83%
2009 419 369 6.33%
2010 494 404 9.41%
2011 492 433 7.29%
2012 488 456 5.36%
2013 517 482 5.61%
2014 543 507 5.17%
2015 587 525 3.65%
2016 633 553 5.33%
2017 684 593 7.09%
Average 3.83%
Inflation rate 2.38%
The calculation conducted in the above table represents the use of average method of
5 years to understand the price change of property in Melbourne. In addition, the valuation
relevantly helps in understanding the level of price change, which could be conducted by the
client for improving the level of return from investment. Moreover, the detection of the
housing property change would eventually help in understanding the future prices of house in
Melbourne, which will be used in drafting the financial plan for the client (Dreger & Zhang,
2013).
Year Amount
Year 0 $ 684.00
Year 1 $ 710.18
Year 2 $ 737.36
Year 3 $ 765.58
Year 4 $ 794.88

BUSINESS FINANCE
3
Year 5 $ 825.30
Year 6 $ 856.88
Year 7 $ 889.68
Year 8 $ 923.73
Year 9 $ 959.08
Year 10 $ 995.78
Year 11 $ 1,033.89
Year 12 $ 1,073.46
Year 13 $ 1,114.55
Year 14 $ 1,157.20
Year 15 $ 1,201.49
Year 16 $ 1,247.47
Year 17 $ 1,295.21
Year 18 $ 1,344.78
Year 19 $ 1,396.25
Year 20 $ 1,449.69
Y e a r 0
Y e a r 2
Y e a r 4
Y e a r 6
Y e a r 8
Y e a r 1 0
Y e a r 1 2
Y e a r 1 4
Y e a r 1 6
Y e a r 1 8
Y e a r 2 0
$- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00
$684.00
$1,449.69
Property Value Forecast
The above table and graph relevantly represents the overall increment in property
price, which will incur in future. The overall increment in the property value could be
conducted from $684,000 to $1,449.690, which might help in understanding the level of
savings that is needed by the property purchase. In addition, the valuation mainly helps in
understanding the level of property value, which could increase in future, while its
anticipation would be effective in drafting the financial plan.