Real Estate Project Assignment
Due Date:
You are deciding to invest a pool of funds of 4 million dollars by utilizing the offerings on the stock market, government bond issues, money market and real estate, with the exception that the return of these investments will in the short and long term provide returns that will enable you to achieve your financial goals.
Required:
You are to develop a portfolio of the proposed investment, giving the rationale for each investment decision made.
Develop a plan of action to acquire a piece of land, stating all the important steps involved in this acquisition.
Having acquired that land, you have decided to build your own house instead of continuing to rent.
Comment
on the reasons that influenced the decision to live your own house. What are some of the advantages of owning your own home as against renting?
You have realized that you will need additional funds to make this project a reality, and so have decide to access information from four financial institutions to be able to decide on the suitable source of financing the suits your needs. Present your findings giving the rationale for your choice of financial institution.
Develop a plan of action to facilitate the building process.
You have completed the building process and decided to rent a part of the completed building to provide income towards a retirement fund. Give a brief account of the process involved in initiating the lease agreement indicating that expected income from this arrangement and how it should impact on the accumulated funds for the next 20 years.
In our research project we have at hand $4million to invest; we have made a decision to invest $1 million in government bond issues, $2 million in real estate and $1 million out of the total allocation in Money Market. The $1 Million will be invested at 50% each between Treasury Bills and Certificate of Deposit. As such, we will seek to explain a common term before getting into the efficacies of Money Market: