Problem
Assume that you are a young couple that wish to purchase your first property.
1. Would you invest in income property or speculative property? Why? Describe the key characteristics of the income or speculative property on which you would focus your search.
2. Describe the financial and non-financial goals you would establish prior to initiating a search for suitable property.
3. What geographic area would you isolate for your property search? Incorporate and evaluate demand and supply factors into your property search. What are the commonly used supply and demand measures?
4. Explain how the income approach is used to evaluate the market value of a property, and provide a hypothetical example to illustrate your point.