Property Investment

This subject has the following teaching availabilities in 2016:

170 Hours

One of the following subjects or equivalent:

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

This subject is a survey of investment decision-making in the context of property, with a focus on cash flows, return, and value. Property investments are surveyed with emphases on the analysis of commercial real estate and the theory and methods of investment analysis in respect to tax and financial consequences. Financial and non-financial factors influencing the investment feasibility of income-producing property are covered.

At the end of the subject, students should be able to:

• Evaluate property cash flows for asset valuation;
• Conduct risk return analysis to property investment decisions;
• Apply modern investment theory to the analysis of directly held property assets;
• Compare the risk and return profile of property portfolios with other asset classes; and
• Use spreadsheet based financial modelling techniques and property information softwares.

Discussion questions, due weeks 3, 5, 8, 11, 20%, 1000 words.

Mid-term exam, due week 6, 40%, 2000 words.

Final Exam, due end of semester, 40%, 2000 words.

G. Brown and G. Matysiak, Real Estate Investment: A Capital Market Approach, Prentice Hall, 2000.

This subject is not available as a breadth subject.

This subject is intended to develop the following generic skills:

• Communication skills: written and oral skills developed through online and verbal discussion threads;
• Spreadsheet/Calculator skills: competent use of Microsoft Excel and financial calculator required in class and in tutorials;
• Synthesis and professional application: application of practical and theoretical concepts to investment decision-making through midterm and final examinations;
• Personal skills: individual time management, self-directed reading and information synthesis.