Challenges of Management of Public Residential Estate in Ebony State, Sample of Business plans

21 pages, 10248 words

Chapter one

1.Introduction

Although residential estate is one of the most stable and profitable investment opportunities available it is the Virtual Residential estate that is the new gold rush. The revolution is happening right under our eyes with new millionaires being created every minute even as you read this article. It is just the beginning of the new wave of wealth creation. Such unique opportunity happens only once or twice in your lifetime. You will have to grab this opportunity with both hands or will regret for rest of your life.

Management of public residential estate are tools used to analyze financial conditions and performance. Financial analysis means different things to different people. Trade creditors are primarily interested in the liquidity of the firm being analyzed. Their claims are short term and the ability of the firm to pay these can best be judged by an analysis of its liquidity. HISTORY OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE IN DIFFERENT COUNTRY [edit] Germany

Germany is also planning to introduce German REITs (short, G-REITs) in order to create a new type of management of public residential estate vehicle. Government fears that failing to introduce REITs in Germany would result in a significant loss of investment capital to other countries. Nonetheless there still is political resistance to these plans, especially by the social democratic party (‘SPD’).

As of June 2006 the ministry of finance has

announced that they still plan to introduce G-REITs in 2007. The legal details seem to adopt much of UK-REITs regulations (taxation, public listing, etc.), as far as it is possible to tell yet.[citation needed]

A law concerning G-REITs was enacted 1 June 2007, and is retroactive to 1 January 2007.[8] [edit] Qualification

* REITs will have to be established as a corporation “REIT-AG” or “REIT-Aktiengesellschaft”. * At least 75% of its assets have to be invested in real-estate. * At least 75% of the G-REIT’s gross revenues must be real-estate related. * At least 90% of the REIT’s taxable income has to be distributed to its shareholders through dividends. * The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends. * Some restrictions apply on establishing residential REIT’s

[edit] Ghana

REITs have been in existence in Ghana since 1994. The Home Finance Residential property , now HFC BANK, established the first REIT in Ghana in August 1994. HFC Bank has been at the forefront of mortgage financing in Ghana since 1993. It has used various collective investment schemes as well as corporate bonds to finance its mortgage lending activities. Collective Investment Schemes, of which REIT’s are a part, are currently regulated by the Securities and Exchange Commission of Ghana. [edit] Hong Kong

REITs have been in existence in Hong Kong since 2005, when The Link REIT was launched by the Hong Kong Housing Authority on behalf of the Government. Since 2005, there have been 7 REIT listings as at July 2007, most of which, including Sunlight REIT have not enjoyed success due to low yield. Except for The Link and Regal Management of public residential estate Trust, share prices of all but one are significantly below IPO price. Hong Kong issuers’ use of financial engineering (interest rate swaps) to improve initial yields has also been cited as having deterred investors’ interest[9] [edit] India

As of January 2010, India was formulating legislation for REITs in the Indian management of residential estate . Once introduced these Indian REITs (country specific/generic version I-REITs) will help individual investors enjoy the benefits of owning an interest in the securitised management of residential estate . The best benefit being that of fast and easy liquidation of investments in the management of residential estate unlike the traditional way of disposing real estate.

The government and Securities and Exchange Board of India SEBI through various notifications is in the process of easing the norms of investing in residential estate in India directly and indirectly through foreign direct investment, through listed residential estate residential property , mutual funds etc. With the current residential estate boom and the market being flooded with Initial Public Offer of various listed residential estate residential property in India it will be the best time for investors to own a share of the profiting market economy. Legislative framework, revised investment norms, a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.[citation needed] [edit] Japan

Japan is one of a handful of countries in Asia with REIT legislation (other countries/markets include Hong Kong, Singapore, Malaysia, Taiwan and Korea), which permitted their establishment in December 2001. J-REIT securities are traded on the Tokyo Stock Exchange, and most service providers of the J-REITs are Japanese residential estate residential property , Japanese conglomerates and foreign investment banks.[citation needed]

Since the burst of the residential estate bubble in 1990, property prices in Japan have seen steady drops through 2004, with some signs of price stabilization and possibly price increase in 2005 and 2006. Some see J-REITs as a way to increase investment in the management of residential estate , although notable increases in asset values has not yet been realized.[citation needed]

A J-REIT (a listed management of public residential estate trust) is strictly regulated under the Law concerning Investment Trust and Investment

Residential property (the “LITIC”) and established as an investment residential property under the LITIC.

In addition to REITs, Japanese law also provides for a parallel system of special purpose residential property which can be used for the securitization of particular properties on the private placement basis. [edit] Pakistan

The Securities and Exchange Commission of Pakistan is in process of implementing REIT regulatory framework that will allow full foreign ownership, free movement of capital and unrestricted repatriation of profits. It will curb speculation in Pakistani management of residential estate s and gives access to small investors diversifying into residential estate as well. The Securities and Exchange Commission of Pakistan following regulatory framework similar to Singapore and Hong Kong REITs.[citation needed]

The Securities and Exchange Commission of Pakistan expects that about six REITs will be licensed within the first year, mainly large assets management residential property applying for it. Pakistan is recently seeing an outflux of investments by foreign residential estate development mostly Malaysian and Dubai based residential property .[10] [edit] Philippines

REITs in the Philippines will soon be available to the public after the Management of public residential estate Trust of 2009 (RA 9856) lapsed into law on December 17, 2009 and its Implementing Rules and Regulations approved by the Securities and Exchange Commission on May 2010.[11] [edit] Singapore

Commonly referred to as S-REITs. There are currently 20 REITs listed on the SGX, starting with CapitaMall Trust [12] in July 2002. They represent a range of property sectors including retail, office, industrial, hospitality and residential. S-REITs hold a variety of properties in countries including Japan, China, Indonesia and Hong Kong, in addition to local properties.[citation needed]

S-REITs are regulated as Collective Investment Schemes under the Monetary Authority of Singapore’s Code on Collective Investment Schemes,[13] or alternatively as Business Trusts.[14]

S-REITs benefit from tax advantaged status.

[edit] United Arab Emirates

The REIT legislation was introduced by Dubai International Financial Centre (DIFC) to promote the development of REIT’s in the UAE by passing The Investment Trust Law No.5 that went into effect of August 6, 2006. This restricts all ‘true’ REIT structures to be domiciled within the DIFC. The first REIT license to be issued will be backed by Dubai Islamic Bank with a REIT named ‘Emirates REIT.’ The issue is that DIFC domiciled REIT’s cannot acquire non-Freezone assets within the Emirate of Dubai. The only federally approved Freezone within the UAE is the DIFC itself so therefore we expect to see Emirates REIT focusing all of its attention within this zone. Outside of the zone properties are purchasable by local Gulf (GCC) passport holders only. [edit] United Kingdom

The legislation laying out the rules for REITs in the United Kingdom was enacted in the Finance Act 2006 and came into effect in January 2007 when nine UK property residential property converted to REIT status, including the five that were FTSE 100 members at that time: British Land, Hammerson, Land Securities, Liberty International and Slough Estates (now known as “SEGRO”).

The other four were: Brixton, Great Portland Estates, Primary Health Properties and Workspace Group.[citation needed]

British REITs have to distribute 90% of their income. They must be a close-ended investment trust and be UK resident and publicly listed on a stock exchange recognised by the Financial Services Authority.[citation needed]

To support the introduction of REITs in the UK, the REITs and Quoted Property Group was created by several commercial property and financial services residential property . Other key bodies involved are the London Stock Exchange the British Property Federation and Reita. The Reita campaign was launched on 16 August 2006 by the REITs and Quoted Property Group, in order to provide a source of information on REITs, quoted property and related investments funds. Reita’s aim is to raise awareness and understanding of REITs and investment in quoted property residential property . It does this primarily through its portal www.reita.org, providing knowledge, education and tools for financial advisers and investors.[citation needed]

Doug Naismith, managing director of European Personal Investments for Fidelity International, said: “As existing markets expand and REIT like structures are introduced in more countries, we expect to see the overall market grow by some ten percent per annum over the next five years, taking the market to $1 trillion by 2010.”[citation needed] [edit] Nigeria

REITs recently took centre stage in Nigeria when the N50billion Union Homes Hybrid Management of public residential estate Trust was launched in September 2008. In 2007, the Securities and Exchange Commission (SEC) issued the first set of guidelines for the registration and issuance of requirements for the operation of REITs in Nigeria is detailed in the Investment and Securities Act (ISA).

[edit] United States

See also: List of public REITs in the United States

In the United States a REIT is a residential property that owns, and in most cases operates, income-producing real estate. Some REITs finance real estate. To be a REIT, a residential property must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.[citation needed] [edit] Qualification

In order to qualify for the advantages of being a pass-through entity for U.S. corporate income tax, a REIT must:

* Be structured as corporation, trust, or association[15] * Be managed by a board of directors or trustees[16]

* Have transferable shares or transferable certificates of interest[17]

* Otherwise be taxable as a domestic corporation[18]

* Not be a financial institution or an insurance residential property [19] * Be jointly owned by 100 persons or more[20]

* Have 95 percent of its income derived from dividends, interest, and property income[21] * Pay dividends of at least 90% of the REIT’s taxable income * No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule) * At least 75% of total investment assets must be in real estate * Derive at least 75% of gross income from rents or mortgage interest * No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

1.2PURPOSE OF THE STUDY

The objectives of this research work is to assess or know the importance/usefulness of Management of public residential estate in EBONY state

The research work will go or examine the indictors for investment in residential property their earning performances, liquidity, positive economic soundness. It will equally examine the indicators of strength, weakness, opportunity and threat (SWOT)

The management will take appropriate corrective actions to improve the result when the weakness are identified. The identification of weakness and consequently improving the result will provide the investors the opportunities to know the propensity of the residential property to achieve progressive growth and equally make decisions of the investment.

1.3SINGIFICANCE OF STUDY

This study will be very important to the following

1. PROSPECTIVE INVESTORS IN RESIDENTIAL PROPERTY : It will enable them determine risks of investment in residential property ie financial position of the residential property thereby making them to invest in a residential property that will be profitably to them.

2. MANAGEMENT OF RESIDENTIAL PROPERTY : It provided tool for assessing or evaluating the residential property performance and also taking decision on where to invest. 3. GOVERNEMT: It helps the tax board to know the amount that will be taxed on residential property profit. 4. EXISTING INVESTORS IN RESIDENTIAL PROPERTY : after analyzing the management of public residential estate in residential property , it will help the existing investors to know whether to continue their investment or withdraw their interest. 1.4STATEMENT OF PROBLEM

With the collapse of the bubble in the capital market, institutional and foreign investors pulled out of the market leading to a crash in asset values. The severity of the crisis was also increased by the exposure of deposit money banks to the capital market due to a large number of unregulated margin loan facilities extended to clients. This and the lingering effect of oil price bubble in 2009 accounted mainly for the near extinct of credit in the nation’s financial market.

To address the problem of poor infrastructure, a new gas policy has been approved which will ensure the direct allocation of gas, LPFO and PMS to manufacturers. In addition, several other initiatives are being spearheaded by the Government to address the power situation, including dedicating power to industrial clusters. Work is also underway to improve the business climate, including shortening the time for goods clearance at the ports, eventually to no more than 48 hours. The review of the import prohibition list and tariffs are also ongoing. These initiatives are targeted at improving the competitiveness of Nigerian businesses and strengthening the business climate.

In addition to the initiatives outlined above which will have a direct positive impact on growth, productivity and the creation of new jobs, several enterprise development programmes which are focused on the more labour intensive sectors of the economy are currently being developed. Government’s focus is on inclusive growth with job creation and with these and other initiatives to refocus the economy; we expect to see positive results in the medium to long-term.

In 2011, I will expect that residential estate will do better than what we

saw in 2010 significantly as we start to feel the effect of AMCON’s operations and especially after April 29. The 3 tiers of the market are expected to pick up but at different times within the year with the high-end as the last to pick up.

1.5STATEMENT OF HYPOTHESIS

The hypothesis below would be subjected to testing Null Hypothesis Ho: The use of Management of public residential estate has negative impacts on investment Alternative Hypothesis

H1:The use of Management of public residential estate has positive impacts on investment Alternative Hypothesis

1.6SCOPE AND LIMITATION OF STUDY

The research work will concern or effect only profit making organization. Public corporation are not treated in the study. Time and finance were equally limiting factors of this study finally restricted access o secondary information sources was also restricted in the study.

1.7LIMITATIONS OF THE STUDY

One major set back in the research work time there was not enough time to give this work the thorough research it deserves.

Limitation in question was also problem since respondents truthfulness in answering question was not adequately guaranteed.

Therefore, the work was limited to the answerers gotten from the respondents. Frequently rescheduling to the top level managers and then unwilliness, when interview to disclose some vital information they considered confidential to the researcher on the strategic planning methods used by the organization.

Scarcity of books, journals and write ups with enough diverse view or planning contributes yet another limitation and set back to this research work.

The least but most important was financial constraints. The cost transportation to P.H where case study firm is located and foods spent in gathering data were very high.

CHAPTER TWO

2.0LITERATURE REVIEW

2.1INTRODUCTION

“Housing is a bundle of joy” (Agbola, 2003).

Housing is a house, a structure or an enclosure used for habitation by people, which generally has walls, openings and a roof to shelter its enclosed space from inclement weather, that is, precipitation, wind and heat (hotness or coldness).

Housing is the combination of residential, commercial and industrial buildings, agricultural land, transportation, health, education, recreation, parks, services centres (water and electricity), waste management centres, cemeteries, markets, religious centres etc in a ratio that will sustain the development of an area.

Amongst the objectives of residential estate are status boosting of the owner, income-generation, capital appreciation, provision of comfort against inclement weather, and provision of resting, working or playing place. Residential estate has been recognised to be the bedrock of socio-economic development of an individual, organisation and nation.

It can also be for political development of a nation. Churchill (1941) said that ‘we mould our buildings and thereafter our buildings shape us’. Human beings are products of the environment they came from. Nigerian economic, education, health, agricultural, manufacturing and pharmaceutical sectors have suffered setbacks because of inadequate housing. Demographically, all divisions of Nigerians by age have suffered inadequate housing. There are no parks for the old, recreational grounds for the youths and infrastructure to compliment the already decayed housing stock in Nigeria.

Many writers have written about the inadequacy of housing stock in Nigeria (Cohen, 1986; Onibokun, 1990; Nubi, 2002; Agbola and Olatubara, 2003; Oyedele 2006).

Adequate housing can be defined as housing sufficient in infrastructure like affordable shelter, roads, drainages, sewage system, pipe borne water, street lighting, recreation grounds, parks, function halls, markets, schools, health centres, social services like post offices,

security posts etc. Affordable housing can also be seen as a combination of quality and quantity of housing in an area which reflects the social and economic status of the people living in the area.

The government cannot do it alone, despite the fact that housing can be seen as economic and social good. The economic benefits of housing and the housing benefits are intertwined and complimentary. Without adequate housing, there cannot be healthy workforce to offer better service and better products and without good purchasing power, the agricultural sector will be down. Adequate food means good health. Health is wealth. Unhealthy citizens generally should be a concern for a responsible government. This is why responsible governments do not leave the issue of housing provision in the hands of novice.

2.2MEANING OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE

A Management of public residential estate Trust or REIT (pronounced rit) is a tax designation for corporations investing in real estate. It is tax-efficient as it reduces or eliminates the participating corporations’ corporate income taxes. REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors if invested in other businesses. The REIT is a system designed to provide a similar structure for investment in residential estate as mutual funds provide for investment in stocks.Like other financial instuments, REITs can be publicly or privately held as investment. Public REITs may be listed on public stock exchanges like shares of common stock in other firms. REIT is a machinery that can spurn the development of adequate and avoidable housing growth in Nigeria.

REITs are organisations that own and manage investment properties and issue shares to potential investors to finance their operations. REITs do not pay corporation tax on the condition that they distribute 90 per cent of their income to shareholders. There are three classes of REITs, which are equity, mortgage or hybrid. Equity REIT is cash-backed, mortage REIT is real estate- backed, while hybrid REIT is a combination of the two.

The principal features of REIT are its Net Asset Value (NAV), Adjusted Funds From Operations (AFFO) and Cash Available for Distribution (CAD).

2.3CHALLENGES OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE

Study and evaluate the value of the property, its location, neighbourhood, use, encumbrances, physical state and any incidental cost pursuant to its acquisition. Carry out a feasibility study, viability, encumbrances and any cost incidental to its acquisition. An EIA (Environmental Impact Assessment) report may also be required for some residential estate developments. A very important step to consider is the engagement of consultants. Residential estate professional advisors are required almost at every stage for sound advice. All interests, titles, ownership, registration and documentation must be easily verifiable.

Management of public residential estate also has its pitfalls. The investor must be cautious about the following;

(i.) Do not be carried away with the physical state, aesthetics or location of a property without considering its investment potentials and viability. A beautiful structure may on closer look and study sometimes be defective structurally.

(ii.) The temptation or thought of reaping hyper profits or quick returns on investment should be avoided. It may have an unclear title or incomplete documentation or encumbered by litigation or ownership tussle.

(iii.) Power of negotiation is important, if the investor does not have a residential estate qualification or background, a professional Estate Surveyor or Appraiser should be engaged at a fee. This goes along way to secure his investment and help avoid huge loss due to faulty or hasty decisions.

Some of the best investment tips for the residential estate and property investor though with caution are given below;

Offers from relocating sellers.

Bank sales and foreclosures arising from property used as security for mortgage and loans. Fresh allocations from governments’ housing schemes.

Financial distress or difficulties due to failed businesses, loss of employment, downturn in seller’s economy (meltdown), protracted illness, accidents, natural disasters, etc. Joint owners or divorced couples willing to sell in a hurry.

High capital outlay, not withstanding, residential estate is a sure and secure investment and values appreciates with time. Though there is risk in every investment, residential estate is not an exception. If the investment steps are carefully considered and decisions wisely taken, the investors streams of income are sure of continually being reaped.

These residential property provide you a quote for your problem flat or house within a few hours and though the length of the process depends on you, generally the sale gets over within one week. As the owner, you can stay in your problem property for six months or more than that by prior arrangements to fill in with the timescale you have. Residential estate Investing has never been easier, than with the folks at RealNet USA with over 25 years of experience in the Residential estate Investments industry. Our unique 4-step program helps you Find, Fund, Fix, and Sell your Residential estate Investments.

Our pledge is to help you enjoy the most advantageous returns on all your Residential estate Investing properties. Our first-rate reputation and extensive experience translates into a wealth of Residential estate Investing resources at your fingertips – all day, everyday.

Our Advantage Is Your Advantage!

RealNet USA’s widespread listings, of Hot deals across 6 states, display the acquisition price and the estimated resale value (“after Rehab value”) once renovations are complete. All properties are estimated by our expert licensed.

To get a property sold with subsidence problems is almost impossible. This is because most of the buyers require a mortgage and no mortgage residential property would be lending on a property that has a subsidence history. As a buyer of a problem property you need to remember that even though you might get such properties at a low cost, you will have to make efforts and bring about some required changes in it in order to make it sellable. You can even buy foreclosure properties because this is considered to be one of the bets choices for investing. But before you do this make sure that you have done a proper research and you know well about the foreclosure market so that it is easy for you to get what you are expecting. Whatever steps you are taking make sure that you are well informed about it. The Problem With Residential estate as an Investment

by MD on February 25, 2010

We’ve all heard the old adage of– “rent is simply paying off a mortgage for someone else.” or– “if you want to make some good money, buy some real estate, throw some tenants in there, and collect the rent.”

Well I’ve learned and researched a lot about residential estate over the last few years. I’ve found out that it’s possible to make a decent passive income from residential estate investments. On the flip side, there’s also a dark side to residential estate investing.

What is the problem with using residential estate as a passive income investment? Expensive fees.

Mortgage fees, maintenance fees, property taxes, local taxes, rental insurance, and lack of tenant down periods. I could give you a whole list of fees and really depress you, but I don’t want to do that. Instead I just wanted any potential residential estate investors to consider all of the costs instead of only looking at the monthly cash flow that comes from tenants. There is way more fees involved than a simple rent collection at the end of the month. Collecting rent.

Sure showing up at the end of every month to collect your cash flow sounds easy, and even somewhat fun. I have to share the bad news with you that there have been many horror stories in regards to collecting rent. You can potentially experience tenants that want to avoid paying, tenants with a sad story every month, or tenants that flat out don’t pay their rent.

Okay I know a little hassle here and there isn’t so bad. Maybe I should stop being such a cry baby, right?

The thing is that the capital you invest in residential estate can be invested in other areas that are more hassle-free and less hands on. Tenants screwing you over.

Where I live there is a law where you can NOT evict a tenant between the months of October and March. What does this mean? Well it means that you’re stuck with a tenant living in your property that is not either not paying their rent on time or at all.

What if a tenant damages your property? You’ll have to take them to court. This is time taken away from your already busy schedule. You also run the risk of not winning the case or not getting the full value of the damages done.

There’s also the chance that you’re tenant just leaves the property due to a medical issue or goes out of the country (I know there should be a clause in your contract, but it’s going to be difficult to chase someone in a different country).

You will be stuck without a cash flow for an undetermined period of time. Can you live without this cash flow? How will you cover the mortgage payments?

That’s all for me…What problems do you see with residential estate as an investment?

Aside: Good thing for Passive Income Now and blogging, because without this I would have nowhere else to write about my infatuation for real estate.

2.4MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE IN OTHER COUNTRIES

Australia: The REIT concept was launched in Australia in 1971. The first Listed Property Trust (LPT) on the Australian stock exchanges was General Property Trust was the first Listed Property Trust (LPT).

All the stock exchanges in Australia were merged in 1987 to form the Australian Stock Exchange – ASX. REITs which are listed on an exchange are known as Listed Property Trusts (LPTs), distinguishing them from private REITs which are known in Australia as Unlisted Property Trusts.

More than 60 LPTs are listed on the ASX, with market capitalisation in excess of A$100bn.

Australia is now reputed as having the world’s largest REITs market outside the United States with more than 10 per cent of global listed property trusts found on the ASX.

Bulgaria: REITS were introduced in Bulgaria in 2003 with the so called “Special Purpose Investment Residential property Act”. They are investment-friendly entities for corporate income tax purposes, that is, they are not liable to pay corporate income tax, but are subject to numerous restrictions.

Canada: Canadian REITs were established in 1993. They are required to be configured as trusts and are not taxed if they distribute their net taxable income to shareholders. REITs have been excluded from the income trust tax legislation proposed in the 2007 budget by the Conservative government. Many Canadian REITs have limited liability.

Germany: Germany has also introduced German REITs (short, G-REITs) in order to create a new type of management of public residential estate engine. Government fears that failing to introduce REITs in Germany would result in a significant loss of investment capital to other countries. Nonetheless there is still political resistance to these plans, especially by the Social Democratic Party (SDA).

In June 2006 the Ministry of Finance has announced

that they still plan to introduce G-REITs in 2007. The legal details seem to adopt much of UK-REITs regulations (taxation, public listing, etc.), as far as it is possible to tell yet.

A law concerning G-REITs was enacted 1 June, 2007, and was backdate to 1 January, 2007. REITs will have to be established as a corporation “REIT-AG” or “REIT-Aktiengesellschaft”, meaning REIT incorporated. At least 75% of its assets have to be invested in real-estate. At least 75% of the G-REIT’s gross revenues must be real-estate related. At least 90% of the REIT’s taxable income has to be distributed to its shareholders through dividends. The corporatio is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.

Hong Kong: REITs have been in existence in Hong Kong since 2005, when The Link REIT was launched by the Hong Kong Housing Authority on behalf of the Government. Since 2005, there have been 7 REIT listings as at July 2007, most of which, including Sunlight REIT have not enjoyed success due to low yield. Except for The Link and Regal Management of public residential estate Trust, share prices of all but one are significantly below Initial Public Offer (IPO) price. Hong Kong issuers’ use of financial engineering (interest rate swaps) to improve initial yields has also been cited as having deterred investors’ interest.

Japan: Japan is one of the numerous countries in Asia with REIT legislation (other countries/markets include Hong Kong, Singapore, Malaysia, Taiwan and Korea), which permitted their establishment in December 2001. J-REIT securities are traded on the Tokyo Stock Exchange, and most participants are Japanese conglomerates and foreign investment banks.

Since the burst of the residential estate bubble in 1990, property prices in Japan have been steadily dropping since 2004, with some signs of price stabilization and possibly price increase in 2005 and 2006. Some see J-REITs as a way to increase investment in the management of residential estate , although notable increases in asset values has not yet been realized.

A J-REIT may be structured as an independent corporation or as a contractual relationship through a trust bank.

United Kingdom: The United Kingdom’s REITs legislation was enacted in the Finance Act 2006 and came into effect in January 2007 when nine UK property residential property converted to REIT status, including the five that were FTSE 100 members at that time. These were British Land, Hammerson, Land Securities, Liberty International and Slough Estates (now known as “SEGRO”).

The other four were: Brixton, Great Portland Estates, Primary Health and Workspace.

British REITs have to distribute 90% of their income to shareholders. They must be a close-ended investment trust and be UK resident and publicly listed on a stock recognised by the Financial Services Authority.

To support the introduction of REITs in the UK, the REITs and Quoted Property Group was formed by several commercial property and financial services residential property . Other key bodies involved are the London Stock Exchange and the British Property Federation. The Reita campaign was launched on 16 August 2006 by the REITs and Quoted Property Group, in order to provide a source of information on REITs, quoted property and related investments funds. Reita’s aim is to raise awareness and understanding of REITs and investment in quoted property residential property . It provides knowledge, education and tools for financial advisers and investors.

United States: In the U.S., REITs generally pay little or no federal income tax, but are subject to a number of special requirements set forth in the Internal Revenue Code, one of which is the requirement to annually distribute at least 90% of their taxable income in the form of dividends to shareholders.

In order to qualify for the corporate income tax advantages of REIT in U.S., a REIT must: be structured as corporation, trust, or association; being managed by a board of directors or trustees, have transferable shares or transferable certificates of interest, otherwise be taxable as a domestic corporation; not to be a financial institution or an insurance residential property ; be jointly owned by 100 persons or more; have 95 per cent of its income derived from dividends, interest, and property income; pay dividends of at least 90% of the REIT’s taxable income; not more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule); at least 75% of total investment assets must be in real estate; derive at least 75% of gross income from rents or mortgage interest; and no more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

2.5HOW MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE OPERATES

Nowadays, numerous REITs are investment-oriented and distribute all of or even more than their current earnings, often resulting in dividend yields comparable to bond yields. If an investment residential property such as a REIT distributes more than its taxable income, the excess distribution is considered “return of capital” for tax purposes (not taxed as ordinary income, but first reduces basis in REIT stock; if this brings the basis to zero, then remaining amount of the return on capital is taxed at capital gain rates).

The distribution requirement may hamper a REIT’s ability to retain earnings and generate growth from internal resources. This and other restrictions imposed by the Internal Revenue Code generally limit a REIT’s suitability for growth-oriented investors. However, other considerations may result in potential for stock price appreciation, such as improvements in the REIT’s underlying leasing markets, changes in interest rates, or increasing demand for REIT stocks.

There are over 200 publicly quoted REITs operating in the United States Securities Exchange Commission. Their assets included a combined $500 billion, and approximately two-thirds of them were trading on national stock exchanges. The number of REITs not registered with the Securities Exchange Commission and not publicly traded is about 800 (Rotschild, 2005).

2.7CLIENT PROBLEMS IN TRUSTY ESTATE MANAGEMENT

The property business is one of the most capable businesses of the reveal times and hence there are many investors who want to expend the services of trusty estate management residential property to manage their properties, increase their values and salvage them spacious returns once they resolve to sell them. Even otherwise these days, the owner of a property does not have the time to be keen in the issues of his property very deeply.

Moreover, he may be lacking the distinguished skills also. But at the same time there is an increase in the number of people who want to hire or engage a property and the owner needs to acquire his property in enormous shape and hire out or sell the property at the maximum profit possible. A professional who mainly is interested in managing different properties is surely an respond to all these issues.

sincere estate management residential property offer some standard services like maintenance and cleaning, repairing and other tasks like finding a reliable buyer or tenant for the property. Apart from these typical services these specialized residential property also offer other services specific to the residential property and the client. The residential property provide services to both commercial and residential property holders. But this is unprejudiced an ideal state. It is not that every residential property offers trustworthy and committed services. The owner of a property should form some shimmering searches in locating a firm offering genuine quality assets management at a reasonable rate.

The trusty estate management residential property should be assessed by the owner of the property via personal interviews. Many times these residential property work well during the initial stages of their business agreements but afterwards they do not provide very efficient services. In all cases it is better to acquire a written agreement done between the owner and the managing firm of the property. If there is any discrepancy in services then the managing firm can be challenged by the owner of the property in a proper forum. A very current complaint is that of their not maintaining safe communication with the owners of the property.They do not acknowledge to any

phone calls or dodge queries.

Some proper estate management residential property do not do any wonderful work when it comes to repairs and maintenance tasks. The owner should be cautious of any counterfeit activities that the manager can practice. Many times when it comes to repair work the on-site manager can explain some expensive methodology to go about a repair work when actually the cost of such a repair can be quite reasonable. It is always advisable for the owner of the property to beget a first hand rapport with the laborers and construction material suppliers to know the sincere rates of the resources and labor charges.

The exact estate management residential property can also delay issuing bills in a timely manner to the owners of the property. This might result in some difficulties in the property related calculations of the owner. It is simply very difficult for the owner of the property to support money handy with him all the time and pay the managing firm whenever they put a question to. They may also neglect maintaining the external premises of a building like the gardens and lawns. These are some of the everyday and real-time problems faced by clients of the management residential property . There can be a lot of complicated issues dealing with ownership of the property and the owner should be never be a passive partner in the property related jobs. He should always be cautious and radiant enough to sense any abnormal practices.

References

[edit] References

1. ^ “UPREITs, Down-REITs And Other REIT Vehicles: Should You Go Along For The Ride?”. FindLaw.com. http://library.findlaw.com/1998/Aug/1/126264.html. 2. ^ Carrick, Rob. “REITs battered down to eye-catching levels”. ctv.ca. http://www.globeinvestor.com/servlet/story/GAM.20081206.STMAIN06/GITrusts. Retrieved 2008-12-08. 3. ^ “Residential estate Investments in Bulgaria”. http://tax.uk.ey.com/NR/rdonlyres/egcdkrifqz33z36rqxhsdzf3ndwjg4wg4nqhvruw5hyjr5n5x3shfe3cpts5xklscwrwtkfmiln4kvgkzrgkqbpudoc/International+Alert+13.pdf.

Retrieved 2008-01-01. 4. ^ Mark Rothschild (November/December 2005).

“Spotlight on North America/Canada”. Reit.com. http://www.nareit.com/portfoliomag/05special/p73.shtml. Retrieved 2006-10-17. 5. ^ David Dittman. “REIT Investing, Canadian Style”. InvestingDaily.com. http://www.investingdaily.com/ce/18204/reit-investing-canadian-style.html. Retrieved 2011-01-14. 6. ^ http://www.finlex.fi/fi/laki/ajantasa/2009/20090299

7. ^ Kiinteistörahastolaki; http://www.finlex.fi/fi/laki/ajantasa/1997/19971173 8. ^ Alan O’Sullivan (1 June 2007).

“G-Reit news for German property”. citywire.co.uk. Archived from the original on 2007-09-27. http://web.archive.org/web/20070927082324/http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=92737. Retrieved 2007-06-30. 9. ^ Tim LeeMaster & Yvonne Liu, “Swire considers Festival Walk reit”, Page B1, South China Morning Post, July 12, 2007 10. ^ Pakistan ready to allow REITs – It aims to draw $3 billion from overseas investors in 5

CHAPTER THREE

METHODS AND PROCEDURES

In this chapter, the sources of data used in writing the research will be examined. It concerns with procedures and tools used in this work. 1. SOURCES OF DATA

The sources of data used for this research work are dividend into primary and secondary sources. A. primary source of data collection:

Obtained through interviews, surveys and observations. Interviews and questionnaire were used as sources of primary data for this research work. B. Secondary sources of data collection. These information are obtained from already existing literature and related books on the topic of the project. The source of data are group or dividend into two.

1. Internal secondary data: These data or records are obtained within a business organization. Examples of such records are annual financial reports. 2. External secondary data: These are information obtained

outside the business organization such as journals, newspapers, textbooks. 2. SAMPLE TO BE USED

Estate investment and shareholders of residential property will be the sample used for the research. 3. METHODS OR SYSTEM OF INVESTIGATION

The methods used in the project work include personal interviews. The researcher discovered that there are some questions, which the questionnaire could not take, care hence, the need to embark on interpersonal interviews. In addition, this method helped to either reject or accept by way of confirming the information of the questionnaire. The questions were asked in a polite manner.

Questionnaire administration:To collect the data required, the researcher used questionnaire which contained question necessary for achievement of aims of the study. These questionnaires were shared to shareholders and business financiers and their responses were analyzed later in the book. Statistical Test Applied:chi-square was used in data analysis and equally in test of hypothesis the formular for chi-square X2 = E(0-E)2

Degree of freedom (R-1) (C-1)

Where x2 = chi-square

O = Observed frequency

E = expected frequency

E = the sum

R= number of rows

C = number of columns

Accepted level of significance = 0.05 or 5%.

Decision Rule:Accept the null hypothesis if the table of value is greater than computed value. Reject the null if the table of value is lesser than computed value. Ratio Analysis :In order, to facilitate comprises of data of a residential property , know trend of performance and equally take necessary investment decision ratio analysis has undertaken.

Finally financial statements (ie balancing sheet, profit and loss accounts)

of a given business organization ore enterprise will be analyzed and interpreted. Also account will equally be analyzed to indicate importance of ratio analysis. CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

In this chapter of researcher work, the analysis of data in the financial statement of residential property that make use of Management of public residential estate and the presentation and interpretation of data got from responses to questionnaire given to business financiers and shareholders will be dealt with. 4.1ANALYSIS OF DATA

The responses of shareholders and business financiers who were administered questionnaires were analyzed. A sample of twenty (20) respondents was taken in this researcher work.

The answers on the questionnaire are as follow:

1.Do you have any interest in any enterprise.

20 yes

– No

the essence of this question is to know the importance of sample number of the study. 2.What is your interest in the residential property .

The responses:

10-shareholders

10 –financiers

The purpose of this question was to ensure that the respondents that were tested. Here the sample comprises of equally number of shareholders and financiers of residential property . It is very important to ensure that the responses were not distorted or skewed in any direction and remove all bias from the test. 3.Do you assess the performance of the management of public residential estate in residential property which you people have invested your fund is to know investment decision to embark or adopt. Responses:

10 shareholders said yes

10 financiers said yes

the reason for asking this question or putting the questionnaire is to know

actually whether those respondents (shareholders or financiers) evaluate the performance of their residential property in order to know the type of investment decision to take. Here all of them agreed that they evaluate the performance of their residential property . 4.What method or technique do you use to evaluate the management of public residential estate in residential property for your investment decision? 1. Cash dividends received 4 -4

2. Loan interest paid by the residential property — 3. The profit declared by the residential property 224 4. The market price of the residential property ’s shares1-1 5. Management of public residential estate of the residential property 3710 6. All of the above -11

101020

The essence of putting this question to financier’s and shareholders is to know the level of dependence placed on the use of different performance evaluation methods. To responses of shareholders.

40% = Amount of cash dividend received from the residential property 20% = Rely on profit declared by the residential property

10%= Rely on market price of the residential property ’s share 30% = Rely on the Management of public residential estate

nil = All of the above.

In the case of financial:

20% = profit declared by the residential property

70% = management of public residential estate

10% = all of the above

5.are you familiar with management of public residential estate analysis?

Shareholders financiers total

Yes3912

No718

The question was asked to get or obtain the level of awareness about Management of public residential estate . Here 30% of shareholder were aware but 70% were not aware of Management of public residential estate . Coming to the financiers, 90% of them were aware while 10% of them were not aware. 6.Choose the you use in assessing the management of public residential estate in residential property for your residential property .

Shareholdersfinanciertotal

i.Liquidity ratios 224

ii.Activity ratios —

iii.Investment ratios1-1

iv.Leverage /gearing ratio145

v.All of the above-22

vi.None of the above4-4

vii.Profitability ratio224

101010

here, the levels or the degree in which the various management of public residential estate are used by these people from the responses it show that 20%shareholders – liquidity ratio

20%shareholders – profitability ratio

10%shareholders – investment ratio

10%shareholders – leverage/ gearing ratio

40%shareholders – non of the above

20%financiers = liquidity ratio

20%financiers = profitability ratio

40%financiers = leverage

20% financiers = all of the above

| | | |B. Internal comparisons of the residential property ’s |- |- |- | |ratios in each year with those of budgeted forecast. | | | | |c. Comparison of the residential property ’s ratios in |- |- |- | |each year with industrial average | | | | |D. comparison of the residential property ’s ratio in |- |- |- | |each year with those of other residential property in | | | | |completely different lines of business. | | | | |E. All of the above |- |- |- | |F. None of the above |3 |1 |4 | | |10 |10 |10 |

The above question was presented to know different methods or approach adopted in the use of management of public residential estate for evaluating the performance of residential property for residential property .

Here 70% of sharehlder were the comparison of the ratio for current year with those of previous year. While 30% of the shareholder do not use any of the approaches.

In the case of financier. 80% of them use internal comparisons of the ratio for current year with those of previous year. 10% comparisons of the residential property ’s ratio in each year within those of other residential property ’s in completely different lines of business. While 10% adopt none of these approaches. 8.Give factors you know to be hindrance to the usefulness of Management of public residential estate as a tool for assessing the performance of residential property for investment decision?

| |Shareholders |Financier |Total | |i. The impacts of changes in accounting principles on Management of |3 |4 |7 | |public residential estate . | | | | |ii. the impact of inflation on Management of public residential |3 |2 |5 | |estate . | | | | |iii. The impact of changes in the composition of a group in |1 |2 |3 | |Management of public residential estate | | | | |iv. The impact of the window dressing of financial account on |2 |- |2 | |management of public residential estate | | | | |v. All of the above |1 |2 |3 | |vi. None of the above |- |- |- | | |10 |10 |10 |

Analysis shows the following:

For shareholders: 30% of changes in accounting principle on Management of public residential estate as the only obstacle to the usefulness to the usefulness of Management of public residential estate . 30% of shareholders take the impact of inflation, 10% the impact of charges in composition of group. 20% impact to the window dressing of financial account while remaining 10% attributed all the factors to be the causes of limitation of usefulness of Management of public residential estate . For financiers: analysis shows that 80% of them attribute change in accounting principle on Management of public residential estate to be the factor hindering usefulness of Management of public residential estate . 20% impact inflation, 20% impact of change in composition of group while

remaining 20% adopt al the factors to be the cause of limitation of usefulness of Management of public residential estate .

8.Management of public residential estate help in taking better investment decision do you agree?

Shareholdersfinanciers total

Yes 3912

No718

101020

the essence of this question is to enable the researcher to test the hypothesis.

Here 60% of the respondents (ie shareholders and financiers) agreed or said yes that Management of public residential estate help them in taking investment decision while 40% of them said not to this questions. Prepare: Test the hypothesis using the chi-square solution.

STATE OF HYPOTHESIS

HoThe use of Management of public residential estate does not have positive impact on investment decision. H1The use of Management of public residential estate has positive impact on investment decision TEST TECHNIQUE

Chi-square(X2)

Formula X2=(o – e)2

operative assumptions

level of significance = 0.05

Degree of freedom

(R – 1) (c – 1)

(4 – 1) (4 – 1)

3 X 3

DECISION RULE

Accept Ho: If the calculates value of X2 is less than the critical value. Otherwise reject Ho. Determine the expected frequency

R1C1=80 X 14=3.37

300

R1C2=80 X 75=20

300

R1C3=800 X 113=30.13

300

R1C4=80 X 98=26.13

300

R2C1=100 X 14=4.67

300

R2C2=100 X 75=25

300

R2C3=100 X 113=37.67

300

R2C4=90 X 98=32.67

300

R3C1=70 X 14=3.27

300

R3C2=70 X 75=17.5

300

R3C3=70 X 113=26.37

300

R4C1=50 X 14=2.33

300

R4C2=50 X 75=12.5

300

R4C3=50 X 113=18.83

300

R4C4=50 X 98=16.33

4.2TEST OF HYPOTHESIS

I. Null hypothesis Ho:The use of Management of public residential estate does not have positive impacts on investment decision. II. Alternative hypothesis H1:The use of Management of public residential estate has positive impact on investment decision. DECISION RULE: Accept the null hypothesis if tabulated chi-square value is greater (>) than the computed chi-square value. Otherwise reject the null hypothesis. | |SHAREHOLDERS |FINANCIERS |TOTAL | |YES |3 |9 |12 | |NO |7 |1 |8 | | |10 |10 |20 |

Using the formula of chi-square

X20=(ni =1Observed expected frequency

Expected frequency

X20=(ni =1(Oi – ei)2

TABLE

| |Oi |ei |Oi – ei |(Oi-ei)2 |(Oi-ei)2 | | | | | | |2 | |1 |3 |6 |-3 |9 |2 | |2 |9 |6 |3 |9 |1.5 | |3 |4 |4 |0 |0 |1.5 | |4 |1 |4 |-3 |9 |2.25 |

(ni =1(Oi – ei)2

ei5.25

Number of degree of freedom

=(r – 1) (c – 1)

=(2 – 1) (2 – 1)

at 95% level of confidence 5% level of significance and 1 degree of freedom, the table of value reads X20.5=3.841

DECISION: The table value is 3.841 and this is less than computed value 5.25. we reject the null hypothesis and accept the alternative hypothesis. This means, the use of management of public residential estate has positive impact on investment decision.

| |Very positive |Positive |Not positive |Not positive at all | |Financiers |5 |40 |20 |15 | |Shareholders |7 |20 |55 |18 | |Supervisors |2 |10 |28 |30 | |Clerk |0 |5 |10 |35 |

TO COMPARE THE CHI-SQUARE

(ni =1(Oi – ei)2

X2=(5 – 3.73)2 +(40 – 20)2+(20 – 30.13)2 + (15-26.13)2

3.732030.1326.13

=(7 – 4.67)2 +(20 – 25)2+(55 – 37.67)2 + (18-32.67)2

4.672537.6732.67

=(2 – 3.27)2 +(10 – 17.5)2 +(28 – 26.37)2 + (30-22.87)2

3.2717.526.3722.87

=(0 – 2.33)2 +(5 – 12.5)2+(10 – 18.83)2 + (35-16.33)2

2.33 12.518.8316.33

X2=0.43 + 20 + 3.41 + 4.74 + 1.16 + 1 + 7.97 + 6.59 + 0.49

+ 3.21 + 0.1 + 2.22 + 2.33 + 4.5 + 4.14 + 21.38 = 83.64

Compare value

X2Critical =16.92

X2Computed=83.64

Computed value > critical value.

Decision Reject Ho

Inference: Since we reject Ho it implies that the Management of public residential estate has positive impact on investment decision.

4.3SUMMARY OF RATIOS

Measures of the relative proportion of | | | |

CHAPTER FIVE

FINDING, RECOMMENDATION AND CONCLUSION

This last chapter of this research work deal with findings, recommendation and conclusion for reliability of the use of Management of public residential estate . 5.1FINDINGS

These findings were discovered during the process of research works. 1.Majorities of the shareholder are not familiar with management of public residential estate analysis. This is attributed to illiterate and the difficulties in he computation of Management of public residential estate . As a result of this, they evaluate the performance of their residential property for residential property based on cash dividends paid by the residential property .

Once the residential property are paying dividends yearly, they will be satisfied that every thing is working fine, irrespective that the residential property might be paying these dividends from capital reserve. It is only few shareholders that an compute Management of public residential estate especially the experience and literate ones.

Moreover, the financiers as the fixed interest investors apply management of public residential estate analysis more than shareholders because o their exposure. Most of them will not like to invest in the residential property were security of their loans are in dangers.

2.With the use of test of hypothesis, the use of management of public residential estate has positive impacts on investment decision. This is because the competed value (chi-square) is less than table value. 3.it is equally observed or find out that inflation changes in accounting principles or polliciers on Management of public residential estate etc. limitations to the use of management of public residential estate .

The constant rises in the goods and services in the economy have made it difficult to compare the result of Management of public residential estate of current year with that of the previous year.

It because impossible to take with residential property by shareholders and financiers because of great variations. Also charges in accounting principle of Management of public residential estate give rise to variations in comparisons of result of Management of public residential estate . A valid

strategy in residential estate investing involves the purchase of properties at a discount because they have title problems or a clouded title. The investor can hopefully purchase the property below value, correct the title problems and then sell it at a profit. These clouded title issues could involve:

# Federal, state or local tax liens

# Liens for work done on the property

# Missing heirs with possible claims on the property

# Boundary or survey disputes

# Other claims on ownership

The critical aspect of this investment strategy is to be sure that there is thorough research into the title problems, preferably by a title or abstract company or attorney who specializes in title searches. Once you’ve identified the problems, then you need a qualified attorney to give you an accurate idea of the cost to correct them. If doing so still leaves you with a property you own below its real value, then you probably have a good investment. 5.2RECOMMENDATION

Those recommendations will be given to ensure reliability and accurate use of Management of public residential estate . 1.The shareholders ratio in evaluation the management of public residential estate in residential property for residential property . This will help to reduce apathy or poor attitude towards Management of public residential estate . 2. Management of public residential estate should be used a means to information and not as information themselves. This means that users will not adopt the result as 100% reliable but indicators. 3. The type of nation of economy being experience or prevailing should be considered while computing the Management of public residential estate . When there is inflation or deflation in the economy, there will be variation in comparisons. A result the users should take in mind the impacts of these in the result before adopting. 4. To make Management of public residential estate useful in evaluating performance. They should not be used in isolation.

Other non financial or qualitative information should equally be adopted or analyzed.

5.3CONCLUSION

From the content of the research work, it is observed that the importance or usefulness of Management of public residential estate in evaluating or assessing performance or compares for residential property cannot be over emphasized. Both internal and external users of these computation explained in the work attached much interest to these.

Any residential property or firm operating without analyzing financial statement. (i.e Management of public residential estate ) to compare their current with past years will not know or predict its financial position who neglected these Management of public residential estate are taking risk in their investment . BIBLIOGRAPHY

Bernstein A Leopold, Financial Statement Analysis. Theory Application and Interpretation (fourth Edition) IRWIN Publishers Homewood Illinois USA (1985) Black A, Homer et al,Accounting in Business Decisions: Thoery, Method and use prentice Hall inc Eaglewood New Jersey (1987) Emekwee Patrick,Corporate Financial management African Bureau of Educational science Kinshea 3rd Edition Zaria. 1987. I.M. Pandey Financial Management (1999) Frank wood’s Business accounting eight edition Ritman Publishers London (1999) Holmes Geoffery et al, Interpreting Residential property Reports and Account (1992) Jennings A.R.Financial accounting (second edition) Guernsey press Co. Gvernsey, channel island (1990).

Lucy IManagement Accounting Macmillan Publishers (1998).

Mergs B.W. et al:Financial account (fitfth edition) von Hoffinan press Inc. (1997).

Van Harne James C:Fundamental of Financial management (seventh edition) 1998. Prentice Hall International editional Lond Roger Hermanson: Financial accounting fourth edition, Von Hoffman press Inc. USA (1990)

RESEARCH QUESTIONNAIRE

INSTRUCTION: Please thick the correct ones.

1. Do you have interest in any enterprise:

a. Yes

b. No

2. What is your interest in the economy?

a. Shareholders

b. Finance.

3. Do you asses the performance of the management of public residential estate in residential property which you people have interest your find to know investment decision to adopt? a. Yes

b. No

4. What method or techniques do you use to evaluate the performance the residential property for your investment decision? a. Cash dividend received from the residential property

b. Loan interest paid by the residential property

c. The profit declared by the residential property

d. The market price of the residential property ’s shares e. Management of public residential estate of the residential property f. All of the above

g. None of the above.

5. Are you familiar with Management of public residential estate analysis a. Yes

b. No.

6. Choose the one you use in assessing the management of public residential estate in residential property for your investment decision. a. The residential property for your investment decision. b. Liquidity ratio

c. Activity ratio.

d. Profitability ratios

e. Investment ratios

f. Leverage / gearing ratios

g. All of the above

h. None of the above.

7. State or choose the approach you adopt in applying management of public residential estate for investment decision? a. Internal comparison of the residential property ’s ratio for the current year with

those previous years b. Internal comparison of the residential property ’s ratio in each year with those of budgeted forecast. c. Comparison of the residential property ’s ratios in each year with industrial average. d. Comparisons of the residential property ’s ratio in each year with those residential property in completely different line of business. e. All of the above

f. None of the above.

8. Give factors you know to be hindrance to the usefulness of Management of public residential estate as a tool for assessing the performance of residential property for investment decision. a. The impacts of changes in accounting principles of Management of public residential estate b. The impact of inflation on Management of public residential estate c. The impacts of changes in the composition of a group of Management of public residential estate d. The impacts of the windows dressing of financial accounts on Management of public residential estate . e. All of the above