FIN321 Assignment 2

REAL ESTATE INVESTMENT

Based on various analysis on the financial statements and relevant financial information that details the past three (3) years (fiscal or calendar) of the Real Estate investment (company) in U.S. The current trend shows that real estate business is very lucrative in the U.S. Market evaluations shows that there is a rise in the demand for the already built houses (Richards,1984). Besides, the Cornerstone Real Estate Company in their website gives elaborative information based on the purchases and the sales of their houses, which according to their dealings attract more summit residents hence spanning out their profit and sales indices. I suppose, this could be the best investment for an investor to consider.

From the statistical resources provided over the various fiscal years shows the profound growth dynamics of the U.S companies for instance, with the senior housing industries creating a powerful investment environment atmosphere. The perspective of the Senior Living Investment Fund gives consistent profit margins in structured development opportunities. Demand for Senior Housing is profoundly at a higher range than the supply (Smith, 1992). Therefore, as an investor you can undertake in early stage Senior Living Facility Developments. See the figure bellow.

Another resource is the 13-21 percent annualized rates of returns from the sales of the senior housing (United States, 1933). Based on the best performance of the Senior Housing Units, which actually meets the projected demand. It is worth an investment in the U.S to consider as an investor. The projection show an increment of demand from 1.4million from 2015 to 3.2 million in 2040, registering 100,000 estimated units to be built per year.

Other related resources could be the interplay between the demand and supply market mechanisms in the market. The demand, as grown substantially over the 3 fiscal years that simply attracts investors for this business.

Finally, there is Profit from extra cash flow on a refinance If you are able to refinance the property to lower your mortgage bill payments while the rent stays the same, this establish more cash flow monthly for the business. You can build a cushion for maintenance, save up for a deposit on a new rental, or have more passive income to live off.

References

Richards, T. D. (1984). The guide to foreign investment in United States real estate. New York [u.a.: Van Nostrand Reinhold.

Smith, J. D. (1992). Foreign investment in United States real estate. New York: Wiley. Top of Form

United States. (1933). Proposed code of fair competition for the real estate business, real estate and insurance brokerage business, real estate and building management business, real estate mortgage business, land development and home building business, real estate appraising business as submitted on September 1, 1933. Washington, D.C: United States Government Printing Office.

United States residential real estate & business guide for foreigners. (2006). Washington, D.C: International Business Publications.

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