In this module we will go over 4 types of areas for example - ABCD, we will explain each of them in terms of price, yields, population and certain emphases. Areas D are usually characterized by cheap property prices (relative to the same market!) And refer to crime-ridden areas and with a low-capacity population, while Area A is characterized by high property prices (relative to the same area) and refers to a strong, economically capable population.
We will analyze a chart that refers to the three golden terms - tenant quality, property 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 (relatively) cheap property prices, will the yield go down or go up?
And what can this tell us about the quality of the potential tenant population we're going to rent to?
We will go through all the aspects of the chart and answer all the above questions.