Financial Reporting: Property Market, Mortgage Requirements, Investment Analysis

FINANCIAL
REPORTING

TABLE OF CONTENTS
Part 1 - Introduction.........................................................................................................................1
Part 2- Property Market...................................................................................................................1
Part 3 - Mortgage Requirements......................................................................................................2
Part 4 – Investment Analysis...........................................................................................................3
(a).................................................................................................................................................3
(b) Calculation of NPV and IRR..................................................................................................4
(C) NPV, IRR with only equity financing...................................................................................5
(d) Debt finance strategy..............................................................................................................6
REFERENCES................................................................................................................................7

Part 1 - Introduction
Income property refers to property which is brought or is developed for earning income
by leasing, renting or by price appreciation. Income property could be commercial or residential.
Residential properties are the properties which is not occupied by owner and it carries high
interest rates as compared to owner occupied properties. Commercial properties refers to office
buildings, offices etc. Income property could be good investments alternative for number of
reasons. It gives different alternative from investing in equity stocks and bonds of companies. It
also offers investor security for real property inclusive of various diversified benefits of
investments (Levy, 2019). Investment in real state requires very wide range of considerations.
Here investment in residential apartments and commercial offices are made for earning. For
investors market of housing and interest rates prevailing in market are the main considerations.
Returns are dependent upon locations and is an significantly important for investors to carry
evaluations for the factors related to property.
Part 2- Property Market
The property market in most of the is slowing phase but than also helping companies and
people to increase their earnings through investment in properties. The trend is going upward
continuously this can also be judged by the performance and report of various companies
indulged in real estate investment properties. As per the reports of Jone Lang LaSalle it is
achieving sustainable growth in real state market. Company has clients to get certification of
more than 254 buildings that covers around 98 million sq. ft. of floor space. Company is having
offices that have more than 10000 sq. ft. of space. Company show that economy is growing
which is allowing people to invest in real property.
Company is earning annual revenue 16.3 billion through it operations over the globe
main sector of company is real state management company. Also the REIT is investment
investments are growing over substantial growth rate which shows that real estate are growing
very fast. Peoples are investing in properties for generating returns over their investment without
any risk of losing it. REIT is providing high dividend and potentials for long term as well as
moderate appreciation (Pu and Zhao, 2018). As REIT is able to provide effective dividend
income investment are being made by retirees and retirement saver who are requiring continuous
income for meeting living expenses.
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