GC University, Faisalabad.

LYALLPUR BUSINESS SCHOOL (LBS)

Assignment No. 2

Student’s Name: Course Title: Real Estate Finance and Investment

Course Code: Programme / Section: MBA (1.5) /BBA 8th
Due. Date: 31-05-2020
Total Marks: 50 Instructor: Dr. Aamir Inam Bhutta

Note: The current assignment covers both your theoretical and practical aspects of the course.

1) What are the legal requirements with respect to assets, income, distribution, and ownership
to register and operate the Real Estate Investment Trust (REIT) in Pakistan? Also, discuss
the three types of Real Estate Investment Trust.
 To build your understanding about REIT, you have to read the chapter 21 of Real
Estate Finance and Investments by William B. Brueggeman and Jeffrey D. Fisher,
14th edition. Furthermore, you have to collect material related to regulations and
operations of REITs in Pakistan from Securities Exchange Commission of Pakistan
and other related available sources in Pakistan. 10
2) Zameen.com is a premier platform of property buying and selling. They have constructed
the property indices of housing, plots and residential properties of major cities of Pakistan.
Your task is to visit the www.zameen.com and complete the following tasks:
 Explain how they construct the index?
 Do the trend analysis of the Pakistan Real Estate Index. Also, take the last four year
data of Karachi, Islamabad, Lahore and Faisalabad indices and critically compare
their indices. 15
3) Enlist the Classification of Mortgage Loans. How a mortgage loan could be close down.
Discuss the under the light your learning from the chapter 8 of Real Estate Finance and
Investments by William B. Brueggeman and Jeffrey D. Fisher, 14th edition. 10
4) A mortgage loan in the amount of $100,000 is made at 12 percent interest for 20 years.
Payments are to bimonthly. What will be monthly payment if loan is partially amortizing
and a balloon payment of $50,000 is scheduled at the end of year 20? 15
 Assume that the lender charges 3 points. What would be the APR for each
 How much total interest will be paid from all payments? How much total amortization will
be paid?
 What will be the loan balance at the end of year 3?
 If the loan is repaid at the end of year 3, what will be the effective rate of interest?
 Note: to solve the question 4, you have to study the chapter 4 of of Real Estate Finance and
Investments by William B. Brueggeman and Jeffrey D. Fisher, 14th edition.

Good Luck!