Module FINN3061: Real Estate Finance

Department: Finance

FINN3061: Real Estate Finance

Prerequisites

• Foundations of Finance (FINN1011) and Corporate Finance (FINN2041)

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

• 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.

• 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.

• 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 assessments;
• Problem Solving - by applying appropriate analytical and quantitative skills to evaluate theoretical concepts using real data;
• Initiative - by searching relevant literature, identifying recent developments and information in preparation of the summative assignment;
• Numeracy - by analysing real estate market data;
• Computer Literacy - 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 seminars. Learning takes place through attendance at lectures and participation in workshops, including independent study in solving assigned problems.
• Formative assessment is by means of weekly online quizzes.
• Summative assessment is via two online tests taken during term time and an assignment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Weekly online quizzes

■ 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