Investment Appraisal – Real estate vs stock vs shares

Mr L says: invest in real estate not stocks and shares, and not currency speculation unless George Sauros.

Mr L invested:

€50K small house suburb of London 1979, now €650K.

€200K flat in Kensington SW7 1988, now €1.75m

€200K gracht Central Amsterdam 1993, now €650K

(Assume mortgage interest equals rental/dividend)

Show if and how Mr L better off with mixed share/real estate portfolio or 100% shares

What sort of risk profile does Mr L have?

Lease or purchase of property

Mike to move from la Haye (the Hague) to Barcelona

He plans to live there at least five years

He can buy an apartment for EUR 240.000 plus 10% plus EUR 300 communal charges

OR rent for EUR 1,350 per month

Present a SIMPLE solution to Mike on what is best

Begin with quantified then other factors

Mortgage interest will be blended at 3.5% (50% capital repaid over 5 years and 50% over 15 years

Valuing Time

The Amin Director needs urgently to know the approx. valuation of the time lost p.a. as Euroarrest, an agency of the Commission has 2 buildings, 15 min. walk apart, instead of one building.

300 staff, split 50:50. 50% need to travel to the other building once a week, of these 50% need to travel twice a week. No meetings in August and last two weeks of December

Canteen only operates in one building so decided that staff claim additional 30 minutes lunch travel.

Average staff cost: EUR 3,000 p.m. + 50%, employer paid healthcare, pension & other benefits.

Other brief points you would make?