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Real Estate Finance (FNCE30005)

Undergraduate level 3Points: 12.5Not available in 2017

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Overview

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Real estate is the largest asset class in the investment universe. It consists of everything from the single-family home to real estate-backed derivative products. This course introduces the specialised financial principles needed for portfolio and investment decisions for this diverse asset class. The subject will focus on understanding the primary sources of value in real estate based investments and on assessing the risks to this value. Potential topics include techniques in real estate financing, capital structure in residential and commercial real estate markets, innovations in real estate financing, contingent claims and real options in real estate markets, lease contracts and the valuation of options imbedded in real estate backed assets.

Intended learning outcomes


  • Recognise the structure of residential and commercial real estate markets and their place in the world's economies,
  • Use introductory economic and financial principles to determine impact of economic events on the prices of real estate assets,
  • Apply basic financial principles to analyse the performance of real estate assets,
  • Use basic statistical techniques to study the factors determining real estate prices and returns,
  • Display an intermediate knowledge of the mortgage markets and mortgage instruments, with special emphasis on the Australian mortgage market, and
  • Evaluate contemporary policy debates in the area of real estate finance.

Generic skills

  • High level of development: problem solving; statistical reasoning; application of theory to practice; critical thinking; use of computer software.

  • Moderate level of development: written communication; collaborative learning; team work; interpretation and analysis; synthesis of data and other information; evaluation of data and other information;

  • Some level of development: oral communication; accessing data and other information from a range of sources.

Last updated: 6 December 2024