Case ID: 208015
Solution ID: 13637
Words: 607
Price $ 75

The Beijing Dream

Case Solution

Yingtai and Shangbo are concerned about their future choice of living. Apart from the worry of financing, the couple is bothered about the price, type and location of their potential future apartment. The couple is interested in buying a ‘low-end luxury’ three bedroom apartment at a suitable location. Currently, they reside in a small apartment which could not suffice their future needs. The first issue arises when the couple discovers that the current property market in Beijing is facing a bubble in anticipation of Beijing Olympics 2008. The prices of property can depreciate after that special event. In spite of these factors, the couple should opt for the purchase of new property mainly because of two reasons. Firstly, the luxury property market outlook is stable. 

Excel Calculations

Upgrade and Transaction Cost

Commercial Vs Mutual rate

 Mortgage Rate Comparison:  Commercial Bank Loans vs. Mortgage Mutual Fund

Rental Case

 Comparison of Ownership to Rental Alternative (Annually)


 Recent Sales Price of GGG

 Recent Sale Price of Yangzhou Watertown

Choice of Apartment

 Guoxing Guanhu Garden

 angzhou Watertown

 Sunlight Upper East Side

Mortgage Amortization

 For 20% Down Payment and 80% Mortgage

 For 30% Down Payment and 70% Mortgage

Questions Covered