Contents

• Part A 3
• Introduction 3
• Home Port Property 4
• Objectives of the Investor 5
• Source of Funding 6
• Part B 6
• Discounted Cash flow Analysis 6
• Conclusions and Recommendations 10
• References 12

Description

There are many reasons as to why one invests in property. The reasons could be emotional such as to feel secure, settled in life, a feeling of ownership without the worries of paying rent etc. The reasons could be financial too. Property is regarded as low risk investment as compared to investing in share market, mutual funds etc. Value of property keeps appreciating with time bearing the current recession when property value is decreasing. Property value is expected to rise once the recession is over. When a property is purchased as investment, it is important make a risk analysis. It is also important to make cash flow analysis to find out as to whether the investment justifies the income generated from lease or rent. Net present value and internal rate of return calculated from cash flow analysis help the investor to decide as to whether to go in for the investment or not. The sample property project developed by Home Port Property in Melbourne central business district proves a safe investment for the investor since internal rate of return is greater than the discount rate and net present value is positive. The report gives a go ahead signal to the investor with his decision of investing in Home Port Property off plan apartments.