LAW ECONOMICS AND FINANCE

Description of Assignment

With reference to a commercial property in either China or the UK, explain what issues a developer must consider in order to maximise profit and minimise economic and financial risk before, during and post development, irrespective of whether they choose to sell the property, or retain and manage it as an ongoing investment.

In order to answer this question, you must:

1. Choose an existing property, not more than 10 years old, and assume (pretend) that you are a developer who is building it now. Include a location plan and a photograph or other image of your chosen development. For the purposes of this assignment, assume that there are no existing occupiers or legal title issues. You are going to develop a 'cleared' site.
2. Consider the options available in order to finance your development. You only have 10% of the cost of construction 'in the bank' (equity). What options are available for you to finance the remaining 90% of the project; which option(s) will you choose and why? Please provide the reasons for your decision.
3. Consider how you will maximise your profit: Using economic theory explain how you can minimise your costs and maximise your revenue?
4. Identify the ethical issues likely to be involved with your development and explain how (having regards to RICS professional and ethical standards) you will manage any ethical issues or conflicts.
5. Guidance·More specific guidance on this assignment can be found onBlackboard under "Assessment" and will also be provided in yourteaching sessions.·This assignment requires you to produce a report focusing on aspecific property in either China or the UK.You are going to play the part of a developer who has to needs to decidehow a development is to be financed and is to be economically viable. In doing so, you may incorporate (use) anyeconomic theory and diagrams that you consider relevant and appropriate.
6. Presentation of your Assignment·All typed work shouldbe Arial (11pts) or Calibri (12pts)·You should use the APAreferencing system·Please state the number of words used at the end of the assignment·Word counts include the entire assessment submission, withthe exception of references and appendices·Work up to the word limit will be marked. Any work in excess of the word limit will notbe marked
7. Words are limited to 1900 to 2000 words ！！！