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Introduction to Real Estate Analysis (FNCE20004)

Undergraduate level 2Points: 12.5Campus: Parkville

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Overview

Year of offer2017
Subject levelUndergraduate Level 2
Subject codeFNCE20004
Mode of delivery
On Campus — Parkville
Availability
Semester 1
FeesSubject EFTSL, Level, Discipline & Census Date

This subject applies the financial skills acquired in Finance I to analyse investments in residential and commercial real estate. A firm understanding of real estate markets is essential to these analyses. The subject will examine the operation of the markets for owner-occupied and rental housing, the operation of markets for commercial space for retail, office and industrial uses and the mortgage market. The lectures develop answers to questions such as: What is the role of uncertainty in determining real estate prices? Do demographic changes explain trends in home ownership? Why do some retail areas succeed and others fail? Where possible, data from Australian and world markets will be used to develop the answers to these questions and to illustrate the concepts presented in the lectures.

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; application of theory to practice; synthesis of data and other information.

  • Moderate level of development: written communication; statistical reasoning; interpretation and analysis; critical thinking; evaluation of data and other information; accessing data and other information from a range of sources.

  • Some level of development: oral communication; use of computer software.

Last updated: 30 March 2017