This course will focus on the due diligence of residential real estate investment, i.e. calculations of profits & risks before buying.  This CPD course will also look into the ‘homework’ that needs to be done before investment.

Expected Learning Outcome:

1. Ascertain the investment value and profitability of investing in residential properties.
2. Conduct due diligence as the salesperson should before making any recommendation on the return on equity of an investment in residential properties.
3. Assess the level of financial leverage in order to attain the highest rate of return on any residential property investment.
4. Gather evidence of recent transaction prices and current rents for the purpose of calculating the profitability before making informed investment decisions.
5. Explain common property investment concepts & terms.
6. Work out potential cash flow of the investment.
7. Calculate Return on Equity (ROE) – by applying rules of thumb of real estate calculation.
8. Ascertain gross operating income, standard operating expenses, net operating income and assume a vacancy allowance etc.
9. Show relationship between loan quantum & ROE.