Business Finance for Real Estate
- Module code
- Module leader
- Simon Huston
- Module level
- Module credits
- Min study time
- 150 hours
- Contact Hrs within study time
- 8 hours (Distance learning)
- Teaching period
- Varies (Distance learning)
This module is an introduction to the basic principles, conventions, analytical methods and tools needed for successful investment and finance decision making in real estate. The module focuses on the key aspects of the individual properties and deals. It is designed to provide students with tools, methods and critical information to be able to assess real estate finance risks and opportunities. The module reinforces knowledge gained in the Introduction to Property Economics (1020DL) module and develops and extends that knowledge with a specific focus on real estate.
The module contains an introduction to management accounts; the preparation of cash flow; compounding and discounting; cash flow forecasting; assessment of key investment ratios and measures; introduction to various investment asset classes, including bonds, shares, real estate, REITs, and commodities. The module allows students to understand risk appetite and compare/contrast various asset classes and their returns. The module also introduces financial accounting systems and standards
To achieve credit for this module, students must be able to:
- Understand and apply basic financial principles;
- Understand the industry’s most commonly used financial instruments;
- Appreciate various capital sources;
- Understand the investment spectrum;
- Appreciate financial accounting systems and standards.
|Coursework||1 x Literature Review||50%|
|Coursework||1 x Online-test||50%|
Students should be familiar with the content of at least one of the following:
- Arnold, G. (2009) The Financial Times Guide to Investing: The Definitive Companion to Investment and the Financial Markets. Financial Times/ Prentice Hall; 2 ed., pp.608.
- Brown, G.R. and Matysiak, G. (1999) Real Estate Investment: A Capital Market Approach. Financial Times/ Prentice Hall, 1 ed., pp.736
- Geltner, D.M. and Miller, N.G. (2006) Commercial Real Estate Analysis and Investments. SWEP / International Student Ed., pp.880
- Isaac, D. (2003) Property Finance. Palgrave Macmillan, 2 ed., pp.288
- McLaney, E. (2009) Business Finance: Theory and Practice. Financial Times/ Prentice Hall; 8 ed., pp.528
- Weetman, P. (2010) Financial and Management Accounting: An Introduction. Financial Times/ Prentice Hall, 5 ed., pp.832
- Atrill, P. (2009) Financial Management for Non-Specialists. 5 ed., Prentice Hall, pp.504.
- Barkham, R. J., Ward, C. W., and Henry, O. T. (1996) The inflation-hedging characteristics of UK property. Journal of Property Finance, Vol.7, No.1, pp.62-76
- Cadman, D. (1984) Property finance in the UK in the post‐war period. Land Development Studies, Vol.1, No.2, pp.61-82
- McGough, T., and Tsolacos, S. (1995) Property cycles in the UK: an empirical investigation of the stylized facts. Journal of Property Finance, Vol.6, No.4, pp.45-62.
- Newell, G., and Worzala, E. (1995). The role of international property in investment portfolios. Journal of Property Finance, Vol.6, No.1, pp.55-63
- Oizumi, E. (1994) Property finance in Japan: expansion and collapse of the bubble economy. Environment and Planning A, Vol.26, No.2, pp.199-213
- Wood, F. and Sangster, A. (2012) Business accounting 1.12 ed., Financial Times /Prentice Hall, pp.762