Analyse investment potential of a negatively geared residential property in Sydney.
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Negative Gearing Assignment Prepared by: Sanjeev BHAKRI 1 EXECUTIVE SUMMARY 4 2 INTRODUCTION 5 2.1 Objective 5 3 ANALYSIS OF INVESTMENT 5 3.1 Location 5 3.2 Physical Attributes 5 3.3 Legal Issues 5 3.4 Rental Prospect 6 3.5 Growth Prospects 6 3.6 Economic Trends 8 3.7 Political and Legislative factors 8 3.8 Demographic Factors 9 4 NEGATIVE GEARING 9 5 FINANCIAL ANALYSIS 10 5.1 Borrowing expenses 10 5.2 Rental expenses 10 5.3 Body corporate fees and charges 11 5.4 Depreciation Costs 12 5.5 Rental Returns 12 5.6 Sensitivity Analysis 13 6 SUMMARY OF FINDINGS 14 APPENDIX A 15 APPENDIX B 16 APPENDIX C 17 1 EXECUTIVE SUMMARY 2 INTRODUCTION 2.1 Objective The main objectives of this report are to analyse investment potential of a negatively geared residential property in Sydney. It will look into impact of various factors on the success of the investment. 3 ANALYSIS OF INVESTMENT 3.1 Location Good location of property is very critical for it's success as a good investment potential. "Location, location, location," is a common and almost hackneyed phrase in real estate literature. Mostly, "location" is repeated to emphasize that it is extremely important to the resale value of your home. Specially for an investment property which should attract potential tenants for lease and large number of potential future home buyers. A careful choice...


