Description: Research two different potential investments in real estate (Apartments, Villas, Offices, Warehouses, Shopping Malls, etc.)...

 

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Description: Research two different potential investments in real estate (Apartments, Villas, Offices, Warehouses, Shopping Malls, etc.) in the UAE and collect the needed data for the investment through either online search, networking, phone calls, or connections. Estimate the following: 1) Initial cost (e.g., visit real-estate websites such as bayut and dubizzle). 2) Useful life of the asset (e.g., visit municipality or companies' websites). 3) Operating and maintenance cost (e.g., annual and/or monthly). 4) Visit website of a local bank to collect information on how to finance a real estate and based on the information, calculate the finance cost of the investment. Discuss the difference between the Flat and Reducing (Diminishing) interest rates. (Note: Yes, this was not specifically covered in the lecture but this is your opportunity to understand and show) 5) Use MS Excel to calculate the present worth, annual worth and internal rate of return of each investment using interest rate of 8%. 6) Compare the two investments and recommend the best one. 7) Repeat Steps #5 and #6 using an interest rate of 10%. Will a different interest rate change your conclusion (Discuss)? 8) Discuss the differences between Islamic Bank (Murabaha) and regular finance. 9) Discuss means to improve return of these investments. Note: Gathering the following information needed is the responsibility of the student groups and is important part of the learning process. The requested data is unofficial and the vendors need to know it is for educational purposes. So the information can be approximate and not necessarily the exact pricing that these vendors are providing. To achieve that, the students are encouraged to explore companies' websites, talk to vendors/suppliers/ financial institutions, request email quote(s) and technical specification(s) from the vendors/suppliers/financial institutions etc. Most importantly, save these transcripts (e.g., email copies) and attach it along with the submission as references and records. Description: Research two different potential investments in real estate (Apartments, Villas, Offices, Warehouses, Shopping Malls, etc.) in the UAE and collect the needed data for the investment through either online search, networking, phone calls, or connections. Estimate the following: 1) Initial cost (e.g., visit real-estate websites such as bayut and dubizzle). 2) Useful life of the asset (e.g., visit municipality or companies' websites). 3) Operating and maintenance cost (e.g., annual and/or monthly). 4) Visit website of a local bank to collect information on how to finance a real estate and based on the information, calculate the finance cost of the investment. Discuss the difference between the Flat and Reducing (Diminishing) interest rates. (Note: Yes, this was not specifically covered in the lecture but this is your opportunity to understand and show) 5) Use MS Excel to calculate the present worth, annual worth and internal rate of return of each investment using interest rate of 8%. 6) Compare the two investments and recommend the best one. 7) Repeat Steps #5 and #6 using an interest rate of 10%. Will a different interest rate change your conclusion (Discuss)? 8) Discuss the differences between Islamic Bank (Murabaha) and regular finance. 9) Discuss means to improve return of these investments. Note: Gathering the following information needed is the responsibility of the student groups and is important part of the learning process. The requested data is unofficial and the vendors need to know it is for educational purposes. So the information can be approximate and not necessarily the exact pricing that these vendors are providing. To achieve that, the students are encouraged to explore companies' websites, talk to vendors/suppliers/ financial institutions, request email quote(s) and technical specification(s) from the vendors/suppliers/financial institutions etc. Most importantly, save these transcripts (e.g., email copies) and attach it along with the submission as references and records.

Answer rating: 100% (QA)

Answer Finance arranged for both the properties 1st option Property price is AED 1610000 Down paymen... View the full answer