Group Case Study:As a loan officer in a bank, you received an application for a real estate loan from a borrower to buy anapartment in Dubai. The apartment is an unfurnished one bedroom flat situated in Park Island building(Sanibel) in Dubai Marina. Details about the property (and a comparable one sold in the same building) arepresented in the following table:Property to be valued (A) Comparable Property (B)in March 2022Sale dateSelling price/value (AED)Gross annual rent (AED)January 20221,550,000Annual Maintenance fees2020(AED/square feet)Vacancy rate (%)Area (square feet)Price (AED/square feet)Gross annual rent (AED/square feet)Proximity to AParking availableFloor levelExterior (Building)1010922937Same building1.1.highFloor to Ceiling GlassFull Marina ViewhighFloor to Ceiling GlassFull Marina ViewViewa. Using the market value approach, find the value of the property (A) (Suppose that the price listed is theselling price).b. Using the income capitalization approach, find the value of the property (A).

Value of the property refers to the market price or cost of the property that will be realized at…

As a loan officer in a bank, you received an application for a real estate loan from a borrower to buy an apartment in Dubai. The apartment is an unfurnished one bedroom flat situated in Park Island building (Sanibel) in Dubai Marina. Details about the property (and a comparable one sold in the same building) are presented in the following table: Property to be valued (A) Comparable Property (B) in March 2022 Sale date Selling price/value (AED) Gross annual rent (AED) Annual Maintenance fees |(AED/square feet) Vacancy rate (%) January 2022 1,550,000 20 20 10 10 quare foot) 022 027

As a loan officer in a bank, you received an application for a real estate loan from a borrower to buy an apartment in Dubai. The apartment is an unfurnished one bedroom flat situated in Park Island building (Sanibel) in Dubai Marina. Details about the property (and a comparable one sold in the same building) are presented in the following table: Property to be valued (A) Comparable Property (B) in March 2022 Sale date Selling price/value (AED) Gross annual rent (AED) Annual Maintenance fees |(AED/square feet) Vacancy rate (%) January 2022 1,550,000 20 20 10 10 quare foot) 022 027

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 8FPC

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