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Real Estate Finance (FNCE30005)
Undergraduate level 3Points: 12.5Not available in 2017
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
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High level of development: problem solving; statistical reasoning; application of theory to practice; critical thinking; use of computer software.
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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;
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Some level of development: oral communication; accessing data and other information from a range of sources.
Last updated: 27 April 2024
Eligibility and requirements
Prerequisites
Code | Name | Teaching period | Credit Points |
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FNCE20001 | Business Finance |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
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12.5 |
Code | Name | Teaching period | Credit Points |
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FNCE20004 | Introduction to Real Estate Analysis | Semester 1 (On Campus - Parkville) |
12.5 |
Corequisites
None
Non-allowed subjects
None
Recommended background knowledge
Please refer to Prerequisites and Corequisites.
Inherent requirements (core participation requirements)
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
Last updated: 27 April 2024
Assessment
Additional details
- A 2-hour end-of-semester examination (50%)
- Assignments totalling 2500 words, or equivalent, due in week 9 to 11 (50%)
- To pass this subject students must pass the end of semester examination.
Last updated: 27 April 2024
Dates & times
Not available in 2017
Time commitment details
120 hours
Last updated: 27 April 2024
Further information
- Texts
Prescribed texts
You will be advised of prescribed texts by your lecturer.
- Related Handbook entries
This subject contributes to the following:
Type Name Breadth Track Real Estate and the Australian Dream - Breadth options
This subject is available as breadth in the following courses:
Last updated: 27 April 2024