uppose you are a cashed-up real estate investor considering purchasing an investment property in Brisbane to buy and then rent out. a) Find a two-bedroom apartment that is advertised for sale (provide a web link to the example). Given the listed (or estimated) sale price of this apartment (use apartment with price of $670,000), what would be the minimum rental income that would make it profitable to invest in this apartment? Make and state your assumptions (e.g., interest/discount rates, maintenance costs).  b) Suppose interest rates went up. Would you n

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter16: Real Estate And High-risk Investments
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Suppose you are a cashed-up real estate investor considering purchasing an investment property in Brisbane to buy and then rent out.

a) Find a two-bedroom apartment that is advertised for sale (provide a web link to the example). Given the listed (or estimated) sale price of this apartment (use apartment with price of $670,000), what would be the minimum rental income that would make it profitable to invest in this apartment? Make and state your assumptions (e.g., interest/discount rates, maintenance costs). 

b) Suppose interest rates went up. Would you now be willing to pay more or less for the same property? 

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