An investor seeks your advice to decide in choosing the following investment options which have been...
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An investor seeks your advice to decide in choosing the following investment options which have been offered to him: Investment Options Type of Property Tenure Gross Floor Area (sq. m.) Market Value (RM) All Risks Yield (net) Occupancy Status A B 10-storey purpose-built office 5-storey mixed retail and office spaces. building Freehold Leasehold for 99 years with unexpired term of 77 years 12,000.00 2.5 million 8.5% Vacant 6,000.00 1.17 million 7.5% Vacant The investor plans to apply loan facilities provided by a local bank and the bank agreed to approve his loan at 80% from the Market Value with annual interest rate at 6.25% per annum. Based on market observation made, the expected market rental growth is on average 2% per annum. The investor also plans to secure the interest for 10 years. An investor seeks your advice to decide in choosing the following investment options which have been offered to him: Investment Options Type of Property Tenure Gross Floor Area (sq. m.) Market Value (RM) All Risks Yield (net) Occupancy Status A B 10-storey purpose-built office 5-storey mixed retail and office spaces. building Freehold Leasehold for 99 years with unexpired term of 77 years 12,000.00 2.5 million 8.5% Vacant 6,000.00 1.17 million 7.5% Vacant The investor plans to apply loan facilities provided by a local bank and the bank agreed to approve his loan at 80% from the Market Value with annual interest rate at 6.25% per annum. Based on market observation made, the expected market rental growth is on average 2% per annum. The investor also plans to secure the interest for 10 years.
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Based on the information provided it is recommended that the investor should invest in option A whic... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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