MKTG7023 PROPERTY INVESTMENT AND RISK MANAGEMENT
MKTG7023 PROPERTY INVESTMENT AND RISK MANAGEMENT
ASSESSMENT 1 MARKING GUIDE
QUARTER 3 2023
DESCRIPTION MARKS POSSIBLE MARKS AWARDED
Introduction
Is the subject property clearly identified?
10 Property Market
Does this section provide a full picture of the property market?
20 Mortgages Requirement
Is the clients mortgage requirement clearly explained?
10 Ratio Analysis
Does the table exhibit essential information? Is the ratio analysis comprehensive? And accurate?
35 Conclusion
Are the key findings summarised? Is recommendation being made?
10 Citation of References and Sources
Are the sources of the information being referenced? Is the referencing Harvard styled?
10 Format
Is it as suggested?
5 Total 100
MKTG7023 Property Investment and Risk Management
Assignment 1-Guidelines
Part 1: Introduction
Identify an income-producing commercial property (office, retail, or industrial) and collect the information of the property. The information could be identified via major property websites (such as realestate.com.au, CoreLogic etc).
Part 2: Property Market
Information for the review of market fundamentals can be found from the websites of the Australian Bureau of Statistics (ABS), Reserve Bank of Australia (RBA), journal articles, professional magazines, and property agencies such as Property Council of Australia.
For local market review of property parameters, in addition to the sources above, information can be found from the reports of several property companies such as Jones Lang LaSalle, Knight Frank, CBRE etc.
Part 3: Mortgage Requirements
We acknowledge that getting the actual lending rate for a commercial investment property is often negotiable with the lending institution. Because of this constraint, you can search for business lending rate from at least three lending institutions to discuss the different loan options.
You need to calculate the monthly and yearly mortgage repayment for at least three lending institutions and provide your recommendation to your client. See the lecture notes/files or PowerPoint slides.
Part 4: Ratio Analysis
Collect the relevant information including the tenancy schedule and outgoings of your subject property.
Calculate the various income, financial, and profitability ratios. These calculations can be done on the Excel template provided.
Conduct a ratio analysis - income, financial and profitability for the subject property.
Part 5: Conclusion
You should summarise the key findings. You also need to provide recommendations as to whether the subject property should be purchased.
