Real-estate project flow: Arrange the steps of developing a rental property from financing to earning rent. 1. Site 2. Plan 3. Rent 4. Money 5. Building 6. Construction
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A1, 2, 3, 6, 5, 4
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B2, 3, 6, 5, 1, 4
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C3, 4, 2, 6, 5, 1
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D4, 1, 2, 6, 5, 3
Answer
Correct Answer: 4, 1, 2, 6, 5, 3
Explanation
Introduction / Context:Property development follows a practical pipeline from financing to construction and eventual revenue. This question checks understanding of that order by arranging mixed terms into a coherent process.
Given Data / Assumptions:
- Key elements: Money (financing), Site (land), Plan (architecture), Construction (execution), Building (completed asset), Rent (income).
- Assume a typical development cycle aiming for rental income.
Concept / Approach:Funds are secured first to acquire land and services. With land available, plans are prepared, then construction proceeds. A completed building can then be leased to generate rent. Each step logically enables the next.
Step-by-Step Solution:
Start: Money (4) — financing or capital.Acquire/identify: Site (1) — location for the project.Design: Plan (2) — architectural/engineering drawings and approvals.Execute: Construction (6) — build according to plan.Deliverable: Building (5) — completed structure.Outcome: Rent (3) — income stream after occupancy.Verification / Alternative check:Industry checklists and project lifecycles mirror this sequence: finance → land → design → build → commission → lease.
Why Other Options Are Wrong:
- 1, 2, 3, 6, 5, 4: Places rent before construction and building; money last is infeasible.
- 2, 3, 6, 5, 1, 4 / 3, 4, 2, 6, 5, 1: Disordered financing and revenue steps; rent cannot precede a building.
Common Pitfalls:Assuming rent can be realized before completion; overlooking that capital usually precedes land acquisition and planning.
Final Answer:4, 1, 2, 6, 5, 3