Course Title: Property Investment
Part A: Course Overview
Course Title: Property Investment
Credit Points: 12
325H Property, Constr & Proj Mgt
|Sem 1 2006,
Sem 1 2007,
Sem 1 2008,
Sem 1 2009,
Sem 1 2010,
Sem 1 2011
Course Coordinator: David M. Higgins
Course Coordinator Phone: +61 3 9925 2214
Course Coordinator Email:firstname.lastname@example.org
Course Coordinator Availability: By appointment, email: email@example.com
Pre-requisite Courses and Assumed Knowledge and Capabilities
OMGT1122 Investment Evaluation
ECON1069 Business Forecasting Methods
The aims of this course are to:
* provide an understanding of the investment market and the role of property in these markets and to promote investor flexibility and responsiveness to changing circumstances;
* develop an awareness of the attributes of different investment strategies and their impact in economic terms;
* further develop the skills and techniques required for the analysis of property investment strategies, the development of property investment performance measures and implementation of property investment decisions;
* provide an understanding of the broad context within which property investment decisions are made;
This course considers characteristics of property investment, valuation of real estate assets, real estate market analysis, the role of equilibrium asset pricing models, real estate and portfolio theory, measurement of risk and return, the effect of leverage and taxation, real estate in mixed asset portfolios, listed and unlisted property trusts, property development and the relationship between the space and asset markets.
Property is an important asset class requiring specialised study to understand its role in the economy and as an investment vehicle. Students completing this course will have an enriched understanding of the role of property in a modern economy and in the financial markets.
• real estate as an investment;
• the measurement of real estate investment performance;
• the construction and management of real estate portfolios;
• the role of real estate in mixed asset portfolios;
• indirect and international real estate investment vehicles;
• the demand for real property; and
• the valuation process.
Objectives/Learning Outcomes/Capability Development
On completion of this course, students are expected to have competency in:
• applying analytical techniques used in portfolio management;
• analysing and evaluating real estate market data;
• applying spreadsheet modelling to evaluate property performance;
• the evaluation of different lease structures and leasing incentives; and
• appreciating the role of real estate within the wider investment market.
By the end of this course it is expected that students will be able to:
- Recognise that objectives for property investments differ between investors due to their own interests and prejudices
- Analyse a property investment to ensure that it meets investor objectives.
Undertake a sensitivity analysis of the results to identify the critical variables in the evaluation.
Undertake sophisticated market analysis and be able to report the results in a professional manner.
- Demonstrate effective use of appropriate technologies for the evaluation and assessment of property investment opportunities.
- Present appropriate a coherent, relevant and appropriate analysis in both a written and oral form.
- Implement decisions in a timely and appropriate manner.
Monitor the ongoing operation of the property to ensure the continued achievement of the investment objectives.
Ensure that operational issues / activities continue to meet strategic requirements.
- Demonstrate appropriate responses to changing circumstances that might impact on the performance of the investment property.
Assess the impact of risk on the investment objectives.
Overview of Learning Activities
This course brings together the different strands of the first and second year courses which have developed a framework for the study of property investment, particularly Property Concepts, Investment Evaluation, Business Forecasting Methods and to a lesser extent Property Data Analysis and Urban Economics. These relationships are reinforced and further developed.
There is some overlap between some of the courses. This is inevitable within a wide-ranging program such as Property & Valuation regardless of how the courses are organised. However, alternative methods of presentation or approach will serve to reinforce and strengthen the concepts and topics covered. Wherever possible these overlaps will be identified.
The course is run as a class and question and answer sessions with interaction with lecturer and students encouraged. A detailed lecture outline will be handed out in the first class in each semester.
Overview of Learning Resources
A pre-programmed financial calculator; it will be assumed that students are familiar with the functions of the Hewlett Packard 10BII calculator.
Students will require prior knowledge of the operation of a spreadsheet package, specifically Microsoft Excel.
Overview of Assessment
Assessment will be by a combination of project work and examination. An outline of the assessment for this course comprises the following:
Assignments, (1 x individual) 40%
Final Exam (2-hour, closed book ) 60%
Further detail of the assessment tasks is made available to enrolled students via RMIT Online, and in class.
The method of assessment (including submission dates) in the course guide may be altered by the lecturer with the approval of the Program Coordinator .
Students must retain a full copy of all assignment work. In the event that assignment work is not received or misplaced, students will be required to reproduce a copy of their assignment upon request.
• Pass mark will be an aggregate of 50% with a requirement that a minimum of 40% must be obtained from each piece of assessment throughout the course.
• Due dates for assignments are considered deadlines. Work submitted after the due date without permission may not be accepted. Once assignments or other work are returned to the class no further submissions will be entertained, unless prior arrangements have been made for an extension. If you are ill or have suffered another form of hardship you need to advise staff and request an extension, with an agreed submission date attaching. This must be done before the due date for normal submission.
• Where circumstances are such that special consideration is required, students need to apply through the normal channels with appropriate documentation attached. This decision will be made outside the School.