Property Investment and Risk Management

Running head: PROPERTY INVESTMENT AND RISK MANAGEMENT
Property Investment and Risk Management
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PROPERTY INVESTMENT AND RISK MANAGEMENT
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Contents
Introduction:....................................................................................................................................2
Property market:..............................................................................................................................2
Mortgage requirements:...................................................................................................................5
Ratio analysis:..................................................................................................................................6
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

PROPERTY INVESTMENT AND RISK MANAGEMENT
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Introduction:
With approximate land area of 12,294 square meter, 11 Stanton Road, Seven Hills, New South
Wales 2147 property is currently not for sale. The property was last sold in 2011 at $4,350,000.
The total floor area of the property range between 2,000 square meter and 15,000 square meter
and has parking facility. The industrial property can be used as a warehouse by a business
organization as well as it can also be used for other commercial purposes depending on the
requirements of a business.
Image 1: Property location mam extracted using Google navigation app.
Property market:
Seven Hills is a highly desirable location for industries as it allows industries to use smooth
transportation system along with other infrastructural facilities. Securing a versatile industrial
asset in such location is always an attractive opportunity for any business entity. Though the
entire property is not for sale or rent with last sale of the property took place in February 2011

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but it has provided the buyer significant amount of return on the investment since 2011
(CommercialRealEstate.com.au, 2019).
A closer look on the estimated value of the property over the years would give an idea as to the
capital appreciation in the value of the property since it was purchased by the current owner /
owners in February 2011. In February 2011 the property was last sold at a price of $4,350,000
and the scale below shows the expected median sale price of house properties at present on the
basis of data compiled and information collected by realestate.com.au (Ayotunde Olawande,
2011).
Image 2: The median value of houses as per realestate.com.au
From the above valuation scale the value of the property can be calculated. The value of the
property as in July 2019 can be estimated below by using the median house prices in the Seven
Hills region (Inward investment, 2017).
Timeline Value of the property