Question

The Property Manager as Economist-Planner After graduating from college with honors and a masters degree in economics, Bob Jonas was hired by the local urban renewal authority in his home town of approximately 500.000 people. His responsibilities were in the areas of statistics, financial planning and research. When activities of the urban renewal authority began to wind down upon completion of a major downtown redevelopment project, one of the directors, a businessman who had acquired some real estate investment property, hired Jonas to manage one of his residential rental properties The area's economy had slowed with the general downturn in 2008 that occurred throughout the country and severely depressed the price of real estate in many areas including property in Jonas city In addition, a local factory had closed, leaving hundreds out of work, Jonas saw there were suddenly many properties available that were priced far less than they had sold for just a few years before. Jonas also saw that although the rental market was not booming. tenants were shifting where they could to buildings with lower rent 9 1 Why is it important for Jonas to note the area's economy when preparing a manage- ment plan for his new employer? 2 What does the shutdown of the locai factory mean for Jonas and the property he manages? What does the decrease in local property values mean for Jonas and the property he manages? to search 1:34 AM

i need answer and one paragraph explaining each answer for each qu

Answer 1

1. It is important to understanding local dynamics of the area and its segment of consumers as well as their willingness to buy. Thoroughly analysing it helps to target selected customers who are interested thus higher conversion rate and lower customer acquisition cost is achieved. The areas economic growth gives good idea of pricing of property and thus increasing its probability to sell.
2. Shutdown of local factory will lead to unemployment in the area and hence people will look out for homes with lower rent due to credit freeze. Hence Jonas has to design pricing plans as per current economic situation and match competitive rates to get maximum revenues and profitability.
3. Decrease in value means decrease in demand for high end properties and hence Jonas shall have to redesign property prices below competitive rates so to make it affordable with current economic scenario and also maximise overall sales. Decrease in value will also means decrease in revenue in short run for the investment real estate firm.