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This subject presents the principles, concepts and methods needed to analyse an investment in an existing property, to analyse a potential property development and to raise private and public debt or capital for property investment. Discounted cash flows and real estate economics are the basis of these analyses. The subject introduces students to principles of rent and vacancy determination; the application of real estate market analysis to the investment decision; the financial analysis of properties; mortgage financing and the role of public debt taxation; and raising private capital for property.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Recognise the core determinants of property investment value and discuss their impact on a property investment or property development;
- Evaluate and apply market information to derive a market analysis for an investment property or development;
- Perform an investment analysis for an income producing property;
- Perform a financial analysis of a single use and multiple use development project;
- Explain the impact of alternate capital structures on the value and risk of an investment property or development;
- Analyse the impact of taxes on a property investment;
- Explain the various mechanisms for raising private and public equity for a property investment and determine their impact on the investment decision.
On successful completion of this subject, students should have improved the following generic skills:
Application of theory to practice
Interpretation and analysis
Synthesis of data and other information
Evaluation of data and other information
Using computer software
Accessing data and other information from a range of sources.
Last updated: 18 December 2020