Just Up to question 4. Due date is 15th May There is no word limit. Your submission for this task should be concise and between two to three A4 pages for each task question (excluding graphs and...

Investment Planning
Macroeconomic, Industry and Company Analysis
Australia is one of the wealthiest economies of the world. They have strengthened their economy over the past two decades through economic growth. With a population of 25.2 million, its GDP stands at $1.3 trillion and the growth rate in percentage stands at 2.8% as on 2020. The GDP growth rate slowed down slightly due to unplanned investments and slow down in the world economy. The per capita income of Australian individuals stands at AUD$52373. Presently Australia is headed by its Prime Minister Scott Morrison. They are well equipped and can compete globally in terms of technologies, insurance, financial services, and value added manufactured products as well as in mining and agriculture segments. They have policy of free trade agreements with different economically advanced nations of the world. Presently Australia stands at 4th position among the 42 countries in Asia-Pacific region in terms of being the most economic freest nation. Its economic freedom score stands at 82.6. To enhance the economic freedom in Australia the government has invested in infrastructure projects, digital payment platforms, cyber-security and planning to implement regulatory norms on industries and stressing on individual income tax cuts. The income highest tax rate is fixed at 45% while for the corporate it’s 30%. Other taxes include capital gain tax on shares and value added tax. The financial sector is highly advanced in Australia and all the banks are privately regulated prudently by the Australian Prudential Regulatory Authority – APRA.
Abacus Group of Property is a diversified real estate investment trust with investments intended towards the office space and small properties for individuals. It is located in New South Wales and with a single corporate office in Sydney Australia. It was founded by Dr Frank Wolf in the year 1996. Presently it has employee strength of 738 staffs. The ultimate objective of the company is to invest its capital in real estate businesses to earn long term returns for the company as well as for the shareholders. It works on an advanced annuity model business backed with real estate securities. The capital is directed towards the realty properties for generating income and creating value for the ABP. Currently the market capitalization of ABP is $2.3 billion.
The real estate sector of Australia has been hard hit due to global slowdown as well as due to Covid-19 pandemic globally. The purchase of dwelling has hit hard by declining the index by 26.6%. The Chief economist of Westpac Bill Evans stated that it was the corona virus effects which have truly reached the Australian real estate and property market. Due to lockdown and shutdown of industries which resulted in job losses the Australian sentiments of buying property has declined. The prices of dwelling are also expected to reduce in future. But, a part of the population with a stable income can think of buying a property with a balcony at a low cost within three to six months. (Abacus Property Group, History) & (Domain Media; Confidence in Australian property market suffers biggest monthly fall in 47 years; Westpac; Tawar Razaghi; Apr 16th 2020)
Abacus Property Group risks impacting its performance
The various risks associated with Abacus Property Group can be analysed through a PESTEL Analysis model:
Political
· The government of Australia is new and came in power in 2019. If there are any corruptions cases detected in the government, it might result in political instability in the country.
· If there are changes made by the government in the property laws of the country then it will impact the business of Abacus Property.
· High taxation policy by the present government can impact the business of Abacus property
Environmental
· The GDP growth of Australia is good although it has impacted the real estate sector due to Covid-19 pandemic outbreak
· Higher interest rate on loans will impact the purchase of property from Abacus and this will decline the sales of its properties
· Higher level of unemployment due to industry lockdown during the Covid-19 outbreak will surely impact the rate of sales of Abacus property
Social
· Due to recent outbreak of Covid-19 there has been lock down due to which Abacus Property are unable to sale their properties to their customers who are generally the rich young working...