FINN3061: Real Estate Finance

• Foundations of Finance (FINN1011) and Corporate Finance (FINN2041)

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• The module seeks:
• To provide students with knowledge and understanding of questions in real estate finance linked to appropriate methodologies for their analysis.
• To enable students to rigorously explore issues in real estate finance by using computer programming and professional data sources.
• To become familiar with the valuation techniques employed in the real estate finance industry.
• To prepare students to make sound decisions concerning real estate use and investment.
• To provide students with the opportunity to develop the ability to appreciate academic and applied literature relating to real estate finance.

• Legal concepts in real estate finance and investment.
• House price fundamentals and property valuation.
• Determinants of regional house price dynamics.
• Formation of housing bubbles.
• Real estate financing including: the mortgage contract; residential mortgages; commercial mortgages, government affordability programmes.
• Lease and rental contracts and payments.
• Risk analysis of real estate investments.
• The secondary mortgage market.
• International real estate investment.
• Real Estate Investment Trusts.

Subject-specific Knowledge:

• On completion of this module students should have:
• developed an advanced knowledge of the central issues and questions in real estate finance;
• developed an advanced knowledge of the transaction processes in the real estate industry;
• developed an advanced knowledge of the techniques used to evaluate real estate investment projects.

Subject-specific Skills:

• On completion of this module students should be able to:
• apply relevant software packages to rigorously explore issues in real estate finance and investment.
• identify relevant data sources for real estate valuation analysis.
• critically evaluate the appropriateness of different valuation techniques used by real estate professionals.

Key Skills:

• Examples are provided to demonstrate how students will have the opportunity to develop the following key skills:
• Written Communication - through the formative and summative assignments;
• Planning and Organising - observing the strict assignment deadlines; revising relevant material in preparation for assessments;
• Problem Solving - by applying appropriate analytical and quantitative skills to evaluate theoretical concepts using real data;
• Initiative - by searching relevant literature, identifying recent developments and information in preparation of the summative assignment;
• Numeracy - by analysing real estate market data;
• Computer Literacy - by using appropriate software programmes to analyse financial data.

• Teaching is by lectures and workshops. Learning takes place through attendance at lectures and participation in workshops, including independent study in solving assigned problems.
• Formative assessment is by means of weekly online quizzes.
• Summative assessment is via two online tests taken during term time and an assignment.

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