IS REAL ESTATE INVESTMENT RISK-FREE? 

A. For most people, the ultimate dream is settling down on their own property and this
dream has fueled the rise of an industry; the real estate industry. Real estate typically
involves the buying of land-based properties such as land itself and buildings. It is known
to be one of the most profitable business ventures and there is even a saying that 90%
of millionaires became so through real estate. Some are of the strong opinion that real
estate is the safest form of investment and to prove how much truth is in that, it is
essential to consider the risks involved in real estate and their magnitude.

B. The most significant risk is commonly referred to as market risk and this points to the
instability of the real estate market. Although there is a prevalent perception that real
estate always goes up, past and recent events have invalidated those views. Notable
among these events is the economic crisis of 2008 which saw real estate properties
depreciate. Sudden changes can occur with the slightest of triggers. For instance, some
neighbourhoods have seen a sharp decline in value after a single riot.

C. Another risk is tied to the type of property that you decide to invest in. Different types of
properties pose different risk percentages with the more profitable ones generally
coming with the highest risk. Family size apartments are in perpetual demand making
them low risk. But with lots of that type of property available, you're less likely to sell or
rent it at a high price. In contrast, a property for short stays will rake in more profit but is
less likely to be rented. Other details about the property that are important to evaluate
are the age and state of the said property. Are these possibly going to negatively affect
the odds of getting clients?

D. One other major risk has to do with the location which is arguably the biggest value
determinant. The location of the property is one of the main attractions for real estate
since everyone wants to be in a comfortable neighbourhood. Granted, every client has
their interests but there are some main things they look out for. How close is property to
essential places and services such as shopping malls, hospitals and restaurants? Do the
roads make the neighbourhood accessible or are there other transport options? Are
there any social or entertainment sites close by such as cinemas and pools? The
answers to these questions affect the value of property in these places.

E. There is also a direct financial risk as to whether income will be more than expenses.
The property requires maintenance and complete fixing over time and in order to make a
profit, these expenses should not exceed income. Agent fees and advertisements also
occasionally add up to the expenditure and if not controlled may sum up to an amount
exceeding the inflow of cash from the building. Vacancy can also pose a financial risk
since it will mean money there will be no income to pay for operational costs. Moreover,
real estate properties are not easily liquified so in the event that you need to quickly get
your investment back by selling immediately, you may face challenges. Unlike other
investments such as stock, real estate may take quite some time and effort to sell off,
even for the best of properties. In extreme cases, you may have to settle for a loss by
selling below its original value due to unforeseen circumstances such as the
development of new properties.
F. There are a lot of risks in the real estate business. Nevertheless, there is no question
about the possibilities of success and huge profits from it. Those who have been
 successful did so with diligence and hard work. Learning to survey the market is key
since the wrong choice is sure to backfire. Diligent real estate investors are always on
their toes, studying trends and using advice from experts. If you are afraid to devote time
and money to get the right information then your chances of making good investments in
real estate are slim. Spotting developing areas quickly, having a good network of
contacts and performing due process is always key in making your investment a steady
source of income. Additionally, real estate worth is barely affected by different markets in
comparison with other investments.

Question 1-7

Reading Passage 1 has eight paragraphs A-F, Which paragraphs contains the following
information?

NB You may use any letter more than once.

1. Learning to survey the market is most crucial to become successful in the real estate
business.
2. The market risk and instability.
3. Different types of expenses associated with financial risk.
4. Risk magnitude of different types of properties.
5. The biggest value determinant of the property.
6. The economic crisis and depreciation of the property.
7. Brief business nature of the real estate business.

Question 8-13

Complete the summary below. USE NO MORE THAN THREE WORDS to complete each
blank space.

Understanding risk in Real Estate

Real estate is susceptible to a multitude of (8)________ owing to its temporal nature.

Real estate (9)___________is a speculative and entrepreneurial activity and factors such
as unknown (10) _____________, risks, and uncertainty are key elements of real estate
development. As such, risk management is of paramount (11) _________, especially
during economic downturns. Investors should always consider the risks to a project,
attempt to quantify them within a (12)__________, and potentially (13)_______ the
project so as to minimize them, where possible.
HAS COVID-19 BEEN THE WORST PANDEMIC?

The year 2020 saw the world being hit by the infamous COVID-19 pandemic and not a single
person can say that they weren’t affected. It popped its head out in the Chinese city of Wuhan
before spreading across the globe with staggering speed. After detections in several places,
countries began to take strict measures to counter its spread.

Almost all countries began to restrict travel in and out of the country. The assumption was that
the virus could only be imported by infected persons and travel bans would thus be effective.
Others with a more relaxed approach mandated testing and quarantine of incomers. A couple of
countries yet still employed the toughest of strategies by entering complete lockdowns,
restricting both external and internal movement of the populace.

These steps, as necessary as they were, met a lot of backlash for arguable reasons. Restriction
of movements meant a halt in trade and commerce activities. Goods were no longer available
and this encouraged hoarding which just intensified the problem. Large industries also saw their
dark days as they were forced to close down. The tourism and hospitality industries were
arguably the most affected since their world revolves around travel. Hotels had to close down
because they neither had guests nor people renting their spaces such as conference rooms.
Airlines had to ground their planes to obey restrictions on travel and tourist sites saw both
international and local tourists disappear. Economies that relied heavily on tourism ground to a
standstill and the scariest part was that there wasn’t any clear timeline that could be set for the
reopening of these businesses since the pandemic was hardly under control after six months.
This uncertainty backed employers into corners where they had to make decisions between
keeping their business afloat or keeping their workers. Pay cuts became acts of mercy as
compared to the scores of people who lost their jobs. Laying off workers although sad could not
be criticized as the situation was really dire.

The stress put on the economy coupled with the rush for necessary items before lockdowns
encouraged sellers to hike their prices. Food items and so on were sold at ridiculous prices
because they had become hot items with a lot of people wanting them. Families and individuals
who had been directly hit by pay cuts and layoffs had a tough time surviving through the
lockdowns. 

The worst part of the pandemic at its peak was the death count. Nations were recording
thousands of deaths weekly and even daily in some hard-hit places. Families lost breadwinners,
parents lost children and married people lost mates. It had a huge emotional toll on a large part
of the human population who were already suffering from the lack of human contact. Those who
were fortunate to recover had to deal with so much pain and post complications of the flu.
Hospitals were congested with patients and were severely understaffed. As if that were not
enough, a lot of health workers were infected and the world health organization estimates that
the number of health workers who lost their lives crosses the 100,000 mark. 

According to reports, close to 95% of students were affected by the pandemic due to the
shutting of schools and in some lands, these closures last a year and over. Eventually, online
schooling programmes were rolled out to continue the already stalled education. It presented
connectivity issues and the need for familiarization with digital platforms of teachers. Students
had to readjust to attending classes and avoid being distracted from their studies while at home.

The world was not prepared for this pandemic and that left us all out on a limb. The initial stages
were very alarming because of the unknown mode of transmission and the absence of a cure.
We all also had to deal with stubborn natured people who refuse to comply with safety
procedures to limit the spread of the virus. Understandably, governments were hesitant to roll
out strict measures until things got out of hand. This no doubt set back hopes of getting the
pandemic under control quickly. Frankly, no one would have thought that a virus could bring the
whole world to a standstill so quickly. 

Months later, vaccines have been developed with the vision of stepping out of the pandemic
through immunity. You do not need to look far before seeing the effects of the pandemic. It has
affected our daily lives drastically

Question 14-22

Do the following statements agree with the claims of the writer in Reading Passage 2?

In boxes 14-22 in your answer sheet, write:

YES If the statement agrees with the claims of the writer

NO If the statement contradicts the claims of the writer

NOT GIVEN If it is impossible to say what the writer thinks about this.

8. The initial stage of this pandemic was not very alarming.

9. There was a huge negative impact of the COVID-19 crisis on people’s mental health.
10. Increases in food price can have a major impact on the living standards of low-
income households during lockdown.
11. The coronavirus pandemic and containment measures have plunged the
global economy into deep contraction.
12. Developing countries have borne the biggest brunt of the pandemic’s impact on tourism.
13. The coronavirus pandemic has reached only a few countries in the world.
14. Governments around the world have pledged billions of dollars for a Covid-19
vaccine and treatment options.
15. External private finance is falling in the midst of global economic turmoil
16. Most of the countries imposed travel restriction to prevent Covid-19.
Question 23- 27

Using NO MORE THAN THREE WORDS from the passage, complete the sentence
below

17. Hospital authorities claim various crises including______________, beds, and

other facilities are hampering their ability to provide services.

24. The global economy faced _____________ job losses in the pandemic recession.

25._______ and self-isolation to curb the further spread of coronavirus, a huge

number of people were already suffering from the lack of human contact.

26. Teachers could remotely teach their students while they were at home, using
___________

27. COVID-19's daily increasing cases and deaths have led to worldwide ______

quarantine, and some restrictions
ADVERTISEMENTS

It is frankly impossible to go a whole day without being exposed to advertisements. From the
streets and workplaces, we are bombarded with advertisements and now we cannot hide from
them even in our own homes. It is estimated that the average American encounters not less
than 4000 advertisements every 24 hours.  The need to sell has driven the innovations within
the advertising world and advertising methods have come a long way from their inception.

Some methods have not exactly become obsolete but are used less frequently because of
digital marketing. For instance, newspaper advertising, which was the premier marketing
method at one point, is no longer as huge as it was. But that is not to say it has lost all its
essence although marketers prefer modern methods with the promise of a wider reach.

Advertising agencies today mean business and are constantly reviewing their approaches. They
usually have a step by step process for creating advertisements. Obviously, the client needs to
present what they intend to advertise and state any preferences or ideas they wish to be
included. The message and particular appeal that is desired is clearly tabled and this influences
the main concept of the advertisement and its content.

Further, there needs to be a target audience or marketplace so that the ad is tailored to fit. The
target audience is defined by age, gender, interests, and many other specifics. It is key to
possess all this data since an inappropriate advert will arouse little or no interest in the product.
An advert for baby food that features loud rock music and a rusty setting, for instance, would be
an absolute disaster. 

Post the initial stage, brainstorming takes most of the time which can be quite long and most will
just work on other things while cracking ideas open in the back of their heads. The type of
content, mood, characters, and the advertising medium are all thought out gradually.  Once
client satisfaction is confirmed, the advert is published.

It is not odd to wonder why so much time and effort goes into advertisements. Well, since the
markets are full of competitors offering the same product, it is up to you to grab the attention of
buyers, and the most proven way to do that is through advertisements. Advertisements have the
power to shape the thinking of clients and make them want your product. Advertisements
usually show products at their best and claim that the products make life better in a certain way.
A ladies fragrance product may portray consumers of that product as strong and attractive,
which is what most women want to be.

Another benefit companies get from using adverts is the elimination of middlemen. Through the
use of ads, companies can reach consumers directly and this reduces the risk of
misrepresentation. Consumers see or hear what you want them to thus giving you the ability to
create the public image that you want of the product.

Advertisements also educate the public on the use or need for a product. You are more likely to
discover a product you now love through an advertisement you saw on the net or a billboard
than through a recommendation. So it is quite clear that advertisements benefit consumers also.

Even though advertisement is a powerful tool, it can be destructive if not used properly. A
terrible ad can drive away interest and even existing clients. In a worse development, you may
end up having ethical or moral issues with poorly planned ads. Many companies have come
under serious backlash after publishing advertisements that sat ill with certain groups.

 The quality coupled with the volume of advertisements out there has made it quite challenging
to break through. The public has been overfed with advertisements to the point where it's a
Herculean task to create something fresh and captivating. Original marketing ideas are meagre
and it is making it difficult for brands and products to stand out. However, there are a bunch of
creatives out there who can make it work, at the right fee of course. Although it may seem
ridiculous to invest in advertisements, it is a great way to boost sales when done in the right way
by the right people. 

Questions 28-34
The diagram below summarizes some of the main points on advertisement provided in the
passage 3. Complete the diagram with information from the passage. You may use NO MORE
THAN THREE WORDS to fill each blank space. Write your answers in Boxes 28-34 on your
answer sheet.

_(28)___, which was Post the initial stage,

the premier marketing Ad is tailored to fit
the __(29)_____ to ___(30)______ is the
method at one point
obtain the optimal process which takes
has already lost its
result. most of times to pull
appeal at present
out innovative ideas.
time.

Adverts can __(32)___sales

The main objective of Advertisement significantly if done in the
advertisement is to right way by the right people
grab the attention of
the
___(31)__________

Poorly planned ad can seriously

Through the use of ads, companies damage the __(34)______ of a
can reach consumers directly and also business entity.
eliminate the _(33)_______ to reduce
the risk of misinterpretation.
Questions 35 -37
Choose the appropriate letter (A-D) and write in the Box 35-40 on your answer sheet.
35. Why some of the advertising methods are used less frequently in recent times?
A. the influence of digital marketing.
B. expensive
C. less flexible.
D. time consuming to reach out the target audience.
36. How the target audience can be defined?
A. by age, gender, interests, and many other specifics
B. size of the company
C. technology used
D. budged of R & D

37. According to the Author, most of the advertisement claim that-

A. The product is better because it’s expensive
B. Products are eco-friendly.
C. products availability.
D. the products make life better in a certain way.

38. Advertisement is powerful tool indeed but when it can be destructive?

A. if published more frequent in the social media.
B. If the target audiences are young people.
C. if published as a big budget Ad campaign.
D. If not used properly.
39. Why it’s very challenging to reach out the target audiences through adverts?
A. public never like advertisement.
B. difficult to define the target segment for ad.
C. public has been overfed with advertisements.
D. Very expensive.
40. How the advertisement can assist the organization to achieve its prime objective.
A. Boost up sales
B. Product development
C. define the market segments.
D. Research.