Investment and Finance for Property

This subject has the following teaching availabilities in 2015:

170 hours

Maths Level 3/4 or

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

The module considers the nature and operation of investment markets with a focus on three major asset classes; shares, bonds and property. It looks at the characteristics of these different investment options, especially in terms of the risks and returns associated with each. The module also introduces basic financial mathematics involving the time value of money, calculation of present and future values, and the computing of rates of return for investments or projects with property as a context. An introduction to the interpretation, analysis and use of financial statements (profit and loss statements, cash-flow statements and balance sheets) is provided. Finally, it considers the application of appropriate accounting and regulatory standards in interpretation of financial statements.

This course is intended to enable you:

• Understand the operation of finance and investment markets
• Interpret financial information
• Analyse the characteristics of different investment asset classes i.e. property, stocks, bonds
• To apply basic financial mathematics and analyse financial data.

Assignment 1: participation in weekly investment exercise (due weekly) 10%

Assignment 2: in class multiple choice test (due in week 6) 20%

Assignment 3: written assignment, 2000 words (due in week 10) 30%

Assignment 4: section A: multiple choice and section B: one quantitative problem from two and one essay from two (due end of term) 40%

ESSENTIAL TEXTS

• Valdez, S (2007) An introduction to global financial markets, (5th edition), Palgrave, Macmillan

• Brett M (1997): Property and Money,(2nd Edition), Estates Gazette.

• Reader

ADDITIONAL READING

• Baum A & Mackmin D & Nunnington N (2006): The Income Approach to Property Valuation, (5th Edition), EG Books , London.

• Zima, P and Brown, R (1996) Schaum's Outline of Mathematics of Finance and Actuarial Science, 2nd Edition, McGraw-Hill Publishing Company, New York.

This subject is not available as a breadth subject.

This course is intended to develop the following skills:

1. Intellectual skills:

• define a problem
• identify the correct method of interpreting data and solving problem
• synthesise knowledge and interpret the appropriateness of the solution
• identify an issue and learn to discuss in a reflective manner

2. Research and professional skills

• appreciate the value of listening attentively, selecting what is important, watching for signals for important points & identifying the structure of the presentation/lecture
• competently use a calculator
• apply and interpret financial mathematical techniques appropriate to the problem
• interpret the financial pages

3. Transferable skills

• competently communicate through a written essay/report
• demonstrate research and professional skills through, for example, the quantitative analysis and interpretation of data
• use standard word processing and spreadsheet packages
• demonstrate basic time management skills