PROPERTY INVESTMENT RISK AND

APPORTUNITIES

ARIF SHAIKH

HPGD/JL15/0849

SPECIALIZATION: FINANCE

PRIN. L. N. WELINGKAR INSTITUTE OF

MANAGEMENT DEVELOPMENT & RESEARCH
JULY 2015
Index
SR. NO. Particulars PAGE NO.
1 Introduction 4
2 Definition 5

3 Understanding Employee Engagement and its Origin 8

4 Process of Employee Engagement 10
5 Benefits of Employee Engagement 12
6 Elements of Employee Engagement 14
7 Dimensions of Employee Engagement 16

8 Phases of Employee Engagement 18

9 Characteristics of Engaged Workforce 20
10 3 Cs of Employee Engagement 22

11 Key Players in enhancing Employee Engagement 24

12 Employee Engagement Initiatives 26

13 Types of Employees based on Level of Engagement 27

14 Employee Engagement Strategies 29

15 Drivers of Employee Engagement 31

16 Job Role as a Driver of Employee Engagement 33

17 Challenging Work as a Driver of Employee Engagement 35

18 How to Engage Women Employees? 36

19 How can Employee Engagement help increase Customer 38

Satisfaction?

20 Reasons to Conduct Employee Engagement Survey 40

21 Do Employees Quit Their Jobs Because of Their Bosses? 41

22 Maslows Hierarchy and Employee Engagement 43

23 Zinger Model of Employee Engagement 45

Introduction
Investment property is real estate property that has been purchased with the intention of
earning a return on the investment, either through rental income, the future resale of
the property or both.

investment in land and buildings, or a single investment in land andbuildings:

The chain would be likely to attract bidders interested in the business as a propertyinvestment.
The country is ripe for commercial property investment.
a property investment company/firm/fund.

What is 'Investment Property'

Investment property is real estate property that has been purchased with the intention of earning
a return on the investment, either through rental income, the future resale of the property or
both. An investment property can be a long-term endeavor or an intended short-term investment
such as in the case of flipping, where real estate is bought, remodeled or renovated, and sold at
a profit.

The way in which an investment property is used has a significant impact on its
value. Investors sometimes conduct studies to determine the best, and most profitable, use of a
property. This is often referred to as the property's highest and best use. For example, if an
investment property is zoned for both commercial and residential use, the investor weighs the
pros and cons of both options until he ascertains which one has the potential for the highest rate
of return, and then utilizes the property in that manner.

Under international financial reporting standards, investment property is property that an entity
holds to earn rental income and/or capital appreciation. It generates cash flows mostly
independently of other assets held by an entity. It is not property that an entity uses to supply
goods or services, nor is it used for administrative purposes. Examples of investment property
are land held for appreciation and a building held for current or future leases to third parties.
Examples of assets that are not investment property are property intended for sale in the near
term, property being constructed for a third party, owner-occupied property, and property leased
to a third party under a finance lease.

If an investment property contains one portion held for either rental income or capital
appreciation, and another portion held for other uses, and if the portions could be sold
separately, then account for them separately. If it is not possible to do so, then account for the
property as an investment only if the portion held for other uses is an insignificant amount of the
total asset value.

If an entity provides services to the occupants of a property, it can account for the property as
an investment property only if the services it provides are insignificant.
Property held by a lessee under an operating lease may be investment property if it otherwise
meets the definition of investment property and the lessee recognizes it under the fair value
model. If a lessee classifies such a property as an investment property, then it must account for
all of its investment property using the fair value model.
Risks Involved in Property Investment
1. Risks Involved in Property InvestmentAt present, the property investment market is termed as
one of the most lucrative market to earn profits.However, there is no profit without risk in any
field. This is true with property investment as well.Generally, risks in property investment are far
more than potential rewards. It is therefore, alwaysadvisable to understand the risk factors
before investing to minimize the risks associated with it.We will now study different types of risks
associated with property investment:1. Loss of investment: The most dangerous thing
associated with property investment is loss ofinvestment money. The dangerous this blow can
be depends upon the amount you invest in property. Themore you invest, the more you can
lose.2. Loss during Speculation: If you want to flip houses or you are in house speculation
business, then youmay lose even more than you have invested. It may also happen that you
may get injured during theongoing work at site. The worst part of entering in the business of
property speculation is that you do nothave enough insurance coverage. These types of deals
do not have enough time too to deal with seriousinjuries.3. Uncertainty: The market is full of
uncertainties. Trends of market keep on changing. Sometimes a bigcompany may open its
office at your place increasing the value of land. On the other hand, it may alsohappen that
some companies of your area may shift their office in some other city thereby reducing thevalue
of land. Some accident may happen during construction work. There may be some natural
disasteror worst enough the buyer may change his mind. All these things greatly affect property
investment.There is always possibility of happening of some events, beyond the control of the
person investing inproperty.4. Lack of inspection: Site inspection is most important thing in
property investment. Sometimes lack ofinspection may result in huge losses. Some investors
fail to take time for properly investing the site. Orsometimes they find out the faults quite late.
Sometimes there are structural problems in some propertiesmaking it difficult to resell the
property. You may even have to sell that property at loss. Sometimes, itmay result in loss of
business. To avoid this, you must tell your potential buyers about the problem or youshould
yourself sort out the problem before selling the property.These were some of the risks involved
in business of property investment. However, you should not bediscouraged with these risks as
some amount of risk is involved in almost every type of business.Moreover, you can avoid all
these problems by exercising caution while making decision related toproperty investment.