Durham University
Programme and Module Handbook

Undergraduate Programme and Module Handbook 2022-2023 (archived)

Module ECON3341: Real Estate Finance

Department: Economics

ECON3341: Real Estate Finance

Type Tied Level 3 Credits 20 Availability Available in 2022/23 Module Cap None. Location Durham
Tied to NN43
Tied to N302
Tied to N304
Tied to N402
Tied to N403
Tied to N405
Tied to NN42
Tied to N204
Tied to N206
Tied to N401
Tied to N404
Tied to N406
Tied to N305
Tied to N306
Tied to N307

Prerequisites

  • Foundations of Finance and Corporate Finance

Corequisites

  • None

Excluded Combination of Modules

  • None

Aims

  • The module seeks:
  • To provide students with knowledge and understanding of questions in real estate finance linked to appropriate methodologies for their analysis.
  • To enable students to rigorously explore issues in real estate finance by using computer programming and professional data sources.
  • To become familiar with the valuation techniques employed in the real estate finance industry.
  • To prepare students to make sound decisions concerning real estate use and investment.
  • To provide students with the opportunity to develop the ability to appreciate academic and applied literature relating to real estate finance.

Content

  • Legal concepts in real estate finance and investment
  • House price fundamentals and property valuation
  • Determinants of regional house price dynamics
  • Formation of housing bubbles
  • Real estate financing including: the mortgage contract; residential mortgages; commercial mortgages, government affordability programmes
  • Lease and rental contracts and payments
  • Risk analysis of real estate investments
  • The secondary mortgage market
  • International real estate investment
  • Real Estate Investment Trusts

Learning Outcomes

Subject-specific Knowledge:
  • On completion of this module students should have:
  • developed an advanced knowledge of the central issues and questions in real estate finance;
  • developed an advanced knowledge of the transaction processes in the real estate industry;
  • developed an advanced knowledge of the techniques used to evaluate real estate investment projects.
Subject-specific Skills:
  • On completion of this module students should be able to:
  • apply relevant software packages to rigorously explore issues in real estate finance and investment.
  • identify relevant data sources for real estate valuation analysis.
  • critically evaluate the appropriateness of different valuation techniques used by real estate professionals.
Key Skills:
  • Examples are provided to demonstrate how students will have the opportunity to develop the following key skills:
  • Written Communication - through the formative and summative assignments;
  • Planning and Organising - observing the strict assignment deadlines; revising relevant material in preparation for examinations;
  • Problem Solving - e.g. by applying appropriate analytical and quantitative skills to evaluate theoretical concepts using real data;
  • Initiative - e.g. by searching relevant literature, identifying recent developments and information in preparation of the summative assignment;
  • Numeracy - e.g. by analysing real estate market data;
  • Computer Literacy - e.g. by using appropriate software programmes to analyse financial data.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Teaching is by lectures and workshops. Learning takes place through attendance at lectures and participation in workshops, including independent study in solving assigned problems beforehand.
  • Formative assessment is by means of an assignment. Feedback will be provided to each individual student which can then be built upon and developed for the summative coursework assignment. Overall feedback and general suggestions for improvements will be posted on DUO.
  • The written exam consists of discursive and/or numerical problems and multiple choice questions.
  • The summative assessment is by means of an assignment of not more than 1,500 words.
  • The online quiz consists of multiple choice questions.
  • The summative assessment consists of an assignment, an exam and an online multiple choice quiz

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 20 1 per week 1 hour 20
Revision Lectures 2 1 per week in T3 1 hour 2
Seminars 8 fortnightly 1 hour 8 ■
Preparation and Reading 170
Total 200

Summative Assessment

Component: Examination Component Weighting: 50%
Element Length / duration Element Weighting Resit Opportunity
Written exam 2 hours 100% same
Component: Examination Component Weighting: 10%
Element Length / duration Element Weighting Resit Opportunity
Online Quiz 45 minutes 100%
Component: Assignment Component Weighting: 40%
Element Length / duration Element Weighting Resit Opportunity
Assignment 1500 words max 100% same

Formative Assessment:

One assignment of not more than 1,500 words.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University