- Problem Definition
I have recently decided to invest in property. The property market in Oman is currently in a stable condition which is an indication of a good time to invest in properties. However in order to decide on what type of property to buy, an analysis on the best selection is to be conducted. This is hence the topic of this blog
- Development of Feasible Alternatives
The budget of investment allows for only the following options:
- Town House
3 Development of the Outcome for Alternative
The following are the criteria on which the decision will be based on:
- Rent price
- Selection of Criteria.
There are several models in the industry that could assist in deciding the best selection. For the purpose of this blog the following will be used:
- Grid Analysis
- Non compensatory Models
In this blog the non-compensatory models will be further explored to drive a the best selection
|Town House 3 bedrooms||Apartment 2 bedrooms||Land 600 m2+ Build Town houses ( 2)|
|Price||200,000 OMR||140,000 OMR||60,000+ 80,000 OMR140,000 OMR|
|Location||Muscat- Al Hail ( The wave compound)||Muscat- Al Hail ( The wave compound)||Muscat- Al Hail|
|Rental per month / Resale value||1200 OMR||800 OMR||800 OMR eachTotal 1600 OMR
|Best Value||Worst Value|
There are four non-compensatory models to be tested as following:
||Land Vs. Apartment||Land Vs. Town House|
|Rental Price per Month||Better||Worse||Better||Better|
|Attribute||Feasible Ranges of Satisfactions|
|Min. Acceptable value||Max Acceptable Value||Unacceptable Value|
|Location||Muscat- Al Hail||Muscat||None|
|Rental Price per month||700 OMR||1500 OMR||None|
|Location> price||Location is more important than price|
|Market Demand > Price||Market demand is more important than price|
|Rental Price >Price||Rental Price is more important than Price|
|Market demand > Location||Market demand is more important than location|
|Location > Rental price||location is more important than Rental price|
|Market Demand> rental price||Market demand is more important than rental price|
|Rental Price per month||1|
|Price||0||Land = Apartment > Town House|
|Location||2||Apartment=Town House >land|
|Rental Price per month||1||Land >Town House >Apartment|
|Market demand||3||Land= Apartment >town House|
- Analysis and Comparison of the Alternative.
This method is useful for eliminating one of inferior alternatives, which is this case the Town House. Also it could illustrate Land is more dominant
The information provided from this method is not sufficient enough for decision-making purpose as the alternatives are acceptable.
- Disjunctive Resolution
Based on the evaluation, best attribute achieved is equally the land and the Apartment.
Indicates the best selection is the land.
- Selection of the Preferred Alternative.
By applying these above 4 models, investing in Land is the selected alternative.
- Performance Monitoring and the Post Evaluation of Result.
Dominance, Disjunctive resoltion as well lexicography methods has brought Land as the best alternative. As evaluated, it relies on comparing the attributes of each alternative to the standard.
- Husni,Shinta. (2014). W8_Shinta_ Applying Noncompensatory Models for Best Selection of Investment in House/Apartment/Home Store Retrieved 24 August 2014 from: http://kristalaace2014.wordpress.com/2014/05/06/w8_shinta_-applying-noncompensatory-models-for-best-selection-of-investment-in-houseapartmenthome-store/#more-1358
- Grid Analysis (2011). Retrieved from: http://depts.washington.edu/oei/resources/toolsTemplates/grid_analysis.pdf
- Decission Matrix Analysis. Retrieved from: http://www.mindtools.com/pages/article/newTED_03.htm
- Noncompensatory and Compensatory Models( Nov 2010), [Online Video] retrieved on 24 August 2014 from http://www.youtube.com/watch?v=CKM9u65kZHg