Subject Outline

E133 - Property Investment Analysis
Purpose

This subject provides an overview of real estate investment analysis and valuation techniques. Specialist areas of the property market in Australia are discussed and valuation techniques (including DCF, capitalisation of net income) are applied. The subject focuses on investment in the property sector from a financial and institutional investment viewpoint.

 

2008 Availability

Trimesters 2

 

Study Modes

Lectures and distance education

 

Assessment Method and Weighting

  • Assignment 40%
  • Examination 60%
Important Information

Resource requirements

  • Financial calculator
  • Internet access
  • Microsoft® Excel
Recommended Knowledge
  • Financial Markets and Economics (C1)
  • Financial Analysis and Valuation (C2)

 

Learning outcomes

On successful completion of this subject students will be able to:

  • describe aspects of the investment decision and investment environment relevant to property investment
  • describe and define the main classifications of property: commercial, retail, industrial, residential, hotel/tourism, international
  • apply property valuation techniques (including DCF, capitalisation of net income, hypothetical development) to various property types
  • describe the hotel, motel and resort, residential and industrial property types and offshore property
  • describe the listed property trust sector and the basis for comparing trusts within the sector
  • identify financing issues and products appropriate to funding property investment
  • recognise legal and taxation issues relevant to property investors
  • describe due diligence issues that must be considered when evaluating a property investment opportunity.
Equivalent/s
Nil

 

Content

  • Overview of Property Investment
  • Property Valuation Techniques
  • Property Market Sectors (Part 1)
  • Property Market Sectors (Part 2)
  • Technical Due Diligence
  • Property Securities Valuation
  • Property Finance
  • Legal Environment
  • Taxation