MMP 212 Property Investment 2019
Undertaking a Market Analysis for Property Investment
25% of unit assessment (approximately 2,500 words)
Due Date: The due date for this assignment is 11.30 pm Friday 5th April 2019 (end of week 5). To be submitted via CloudDeakin. Go to the Dropbox to submit. Please upload one document only. In the assignment file name include the Unit Code, Year, Trimester, Assignment Number, and Your Name.
Length: Approximately 2,500 words (excluding appendices and the reference list).
Format: Use main headings suggested below, develop subheadings accordingly.
Note: Cite all assumptions, references and sources using the Harvard referencing system. Marks will be lost for improper or incorrect referencing.
This individual assignment is the first of a two-stage assessment you will undertake in this unit. Please read the following instructions carefully.
Potential investors require concise and relevant information pertinent to the property market they consider investing in in order to make informed investment decisions. To achieve this, investors, valuers and other stakeholders must obtain a thorough understanding of economic and property market conditions and how they may impact upon the investment under consideration. Given the long-term nature of property investment and the unavoidable acquisition and disposal costs, it is imperative that, as much as possible, future economic and property market projections be evaluated. This evaluation creates the background upon which judgements of value and commercial investment decisions are made.
This assignment is the first of two assignments that, when combined, will create a complete industry standard report for your client. The first half of the report, being this assignment, is a market and building report and the second half will be the financial evaluation of the property investment. Much of the information required for the second task will be extracted from the first so it is essential that you make every effort to ensure you are thorough in your efforts with this assignment.
The report has been requested by an investor located overseas who is completely unfamiliar with the Melbourne property marketplace, although they have heard it is a global city and accordingly wish to invest in a property in 2019. The property of interest to your client is 12 Corporate Drive, Heatherton, VIC. The client (investor) is a successful non-listed real estate investment trust with a typical investment horizon of 10 years and is experienced in property acquisition. The client typically invests in large commercial assets but is now considering medium sized investments to diversify risk, and 12 Corporate Drive, Heatherton, VIC is of particular interest. The investment will be leveraged at a maximum of 80%.
The report should examine current market activities relevant to the property’s market segment. It is very important that after reading the report the investor should have a comprehensive understanding of factors affecting the supply and demand for the office property sector in Melbourne, as well as historical trends and future predictions.
This report will provide commentary on:
• details of the subject property,
• the current property market and economic conditions,
• likely issues unique to the subject property’s sector and submarket (geographic and property type);
• impact of them on the subject property as an investment alternative and;
• predicted future trends (with appropriate rationale)
You are to provide a detailed report of the current state of the investment property market and specific property information, some of which will be used in Assignment 2. Although the property is situated in one of Melbourne’s major submarkets, you are required to analyse the global market, other capital cities in Australia, greater Melbourne and the suburb that the property locates in, to provide the reader with an enhanced understanding of the market. You should use the internet street view to inspect the outside portion of the building and obtain a sense of the area, and source information from the internet. NOTE: UNDER NO CIRCUMSTANCES ARE YOU TO ENTER THE PROPERTY BUT SIMPLY INSPECT IT VIA THE GOOGLE MAP OR VIEW IT FROM THE STREET TO FAMILARISE YOURSELF WITH THE PROPERTY AND LOCATION.
Recommended Format (consider putting in a word count for each part)
The following report headings, which accord with API requirements, are provided as a means of providing guidance. You may feel additional information is relevant. By reviewing the API Practice Guidelines (section 14.3) you will be able to determine what may be required.
• Executive summary
• Location description
• Site particulars
• Building description
• Market commentary including historical trends and current market condition
• Commentary on market trends in the future
• Preliminary conclusion (remember assignment 2 will start here)
The report must be professionally presented and follow API guidelines where appropriate to do so, utilizing appendices and be in keeping with industry practice and standards. Students must correctly use the Harvard style of referencing.
Communication of information visually via photographs and/or graphs is viewed favourably but remember excessive use will be penalised. NOTE: CLOUD DEAKIN HAS A BANDWIDTH OF 20MB AND THEREFORE YOU MUST USE MINIMAL PIXEL SIZE FOR YOUR PHOTOS AND LIMIT THE NUMBER. ASSINGMENTS MUST BE SUBMITTED VIA THE CLOUD AND NO OTHER MEANS OF SUBMISSION CAN BE ACCEPTED.
This assignment has been designed to develop core professional knowledge and skills as part of your PRE course at Deakin. By completing this assignment responsibly you will be able to:
a. Find appropriate information to support evaluation of an investment property (links to ULO1)
b. Evaluate and organise information of investment markets in logical and coherent manner (links to ULO1 and ULO2)
c. Critically analyse and evaluate information gathered (links to ULO2)
d. Communicate information accurately and professionally (links to ULO2 and ULO3)
e. Refer to information sources accurately using the required format (links to ULO1 and ULO3)
The skills and knowledge noted above are highly regarded by property professionals and employers.
These specifically relate to the Unit Learning Outcomes:
ULO1- Explain the characteristics of property in relation to asset investment
ULO2- Analyse the investment viability of property assets utilising contemporary industry methodologies and data?
ULO3- Apply discipline knowledge and investment analysis methodologies to make informed judgements
The due date for this assignment is 11.30 pm Friday 5th April 2019 (end of week 5). To be submitted via CloudDeakin. Go to the Dropbox to submit. Please upload one document only. In the assignment file name include the Unit Code, Year, Trimester, Assignment Number, and Your Name. You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.
Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism.
When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment dropbox folder after upload, and check for, and keep, the email receipt for the submission.
• Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means working day for paper submissions and calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date.
• For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site.
• Building evidence of your experiences, skills and knowledge (Portfolio) - Building a portfolio that evidences your skills, knowledge and experience will provide you with a valuable tool to help you prepare for interviews and to showcase to potential employers. There are a number of tools that you can use to build a portfolio. You are provided with cloud space through OneDrive, or through the Portfolio tool in the Cloud Unit Site, but you can use any storage repository system that you like. Remember that a Portfolio is YOUR tool. You should be able to store your assessment work, reflections, achievements and artefacts in YOUR Portfolio. Once you have completed this assessment piece, add it to your personal Portfolio to use and showcase your learning later, when applying for jobs, or further studies. Curate your work by adding meaningful tags to your artefacts that describe what the artefact represents.