FINANCE ASSIGNMENT
Leila@
analysis.pptxRunning head: PRINCIPLES OF REAL ESTATE ANALYSIS
Topic: Principles of Real Estate Report
Student Name
Institution
Introduction
The spread sheet detailing my expenses
I have been able to determine the amount of money that will be able to pay the mortgage.
This presentation gives an explanation of my financial situation
The analysis outlines my lifestyle and projects how home purchase might impact on my lifestyle.
It also looks at how lifestyle will change in the next five years.
It highlights how the home will be utilized in the same period.
Current financial situation
Currently I am not in stable financial condition
I have one source of income (72, 000 annual) but several expenses to foot.
Student , car and credit cards loans need to be serviced.
However, the car is in good condition and as such, it is not expected to take a lot of expenses in the next five years.
My credit ratings are good , I am able to access credit in future when I want.
There are some savings and gift from my parent, which is expected to go towards settling the mortgage expense.
Continuation
Given that there are neither children nor the intention to have some in near future
Normal household expenses are likely to be at their minimum.
The purchase of the home is going to make life a challenge in the first few months.
Revenue streams increase with time as the expenses get stagnant and hence the lower cost.
In long-run the mortgages expense would not take much of the income proportion
It is unlikely it will have a negative impact on the lifestyle.
The schedule of meals and recreational activities will not be affected.
I usually do a movies and swimming on Sundays as a way of recreating.
Home description
The starter home for me will be acquired through a combination of mortgage financial, savings and gifts.
The mortgage formed about 95 % of the total cost.
The home will be in a place with cool climate. The house will be made of three bedrooms, a spacious sitting and washrooms.
From outside the house will be sitting on a quarter acre of land.
The landscape is perfect, the swimming pool behind the house.
A fully equipped gym room to allow recreation.
Continuation
There is also some football pitch were any type of ball can be played.
Such facilities are deemed enough given that the occupant of the house is a senior bachelor.
The home is located within a walking distance of an elementary school
It is within 100 meters location of a shopping mall.
In the next five years I expect to have some two children and their mother.
Given such an environment life will have started at a high note for my family.
Conclusion
In spite of my sorry financial state, I will be able to finance a home from my annual salary.
Analysis shows that I can still afford to pay another loan in addition to car and student loan.
The home I bought is modesty for a starter.
It represents the traditional American dream where everyone is expected to have a house.
The house has modesty recreational facilities.
List of references
Troupe, K. (January 01, 1998). The Garage as Starter Home: A future guest room or rental unit, living space over the garage is an affordable alternative to a fixer-upper or an apartment. Fine Homebuilding, 113, 84-87.
Condit, S. (2014). Starter house.
