This assignment explores the concept of real estate valuation by comparing the merits of buying versus renting a property in Melbourne. It utilizes the Capital Asset Pricing Model (CAPM) to evaluate investment returns and considers factors such as house price growth, historical trends, and interest rate differentials. The analysis ultimately suggests that renting might be a more favorable option due to potential below-average house price growth and fluctuating interest rates.

Solved assignment analyzing real estate valuation using CAPM, comparing buying vs. renting in Melbourne, and discussing interest rate effects.

Real Estate Valuation and Investment

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