In this module we will go over 4 types of areas - ABCD, we will explain each of them in terms of price, yield, population and certain highlights. D zones are usually characterized by cheap property prices (relative to the same market!) And relate to crime-stricken areas and the poorly populated population, while Area A is characterized by high asset prices (relative to the same area) and refers to a strong, economically viable population.
We will analyze a chart relating to the three gold terms - tenant quality, asset price, yield.
The higher the price of the property, can we expect a higher quality tenant?
And what does that say about the return, is it proportionately down or rising?
And on the other hand - when we work in an environment of cheap (relatively) asset prices, will the return go down or rise?
And what can this tell us about the quality of the potential tenant population we're going to rent to?
We will go over all aspects of the chart and answer all of the above questions.