Property Investment, Development Finance

This subject has the following teaching availabilities in 2014:

Estimated total time commitment of 120 hours per semester

This subject is only available to students enrolled in the Graduate Diploma in Finance, Postgraduate Diploma in Finance, the Master of Finance, and for students in the Master of Management who have completed FNCE90018 Corporate Financial Policy and FNCE90056 Investment Management.

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

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.

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.

• 500 word group pitch, or equivalent. Each group will be allocated a week to present their pitch and report at the beginning of semester (10%)
• 2000 word related group report, or equivalent. Each group will be allocated a week to present their pitch and report at the beginning of semester (20%)
• One 1-hour mid-semester examination (20%)
• One 2-hour end-of-semester examination (50%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication

• Written communication

• Collaborative learning

• Problem solving

• Team work

• Statistical reasoning

• Application of theory to practice

• Interpretation and analysis

• Critical thinking

• 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.