Property Investment, Finance and Valuation
- Module code
- Module leader
- Simon Huston
- Module level
- Module credits
- Min study time
- 150 hours
- Contact Hrs within study time
- 40 hours
- Teaching period
- Semester 2
- Principles of investment.
- Private and public-sector client objectives.
- Property vs. other assets, investment vehicles, fundamental vs. technical analysis.
- Capitalisation and appraisal techniques.
- Distinction between ‘worth’ and ‘market value’.
- Feasibility modelling, risk and sensitivity analysis.
- Urban transformation and property development.
- Impact of sustainability, planning and housing policy or contemporary market issues.
- Indirect property investment (REITs).
- Corporate structure.
- Mortgage finance, bonds and equity.
- Cost of capital.
- Performance measurement.
- Risk-adjusted returns.
- Diversification, portfolios and CAPM.
- Bubbles and behavioural finance.
- International real estate investment.
- Compulsory purchase.
To achieve credit for this module, students must be able to:
- Identify and advise on appropriate sources and structures of funding for residential and commercial property purchase and development
- Evaluate and select appropriate methods and techniques for the financial appraisal of property investments and developments
- Make adjustments for the impact of contemporary policy and procedure on the valuation of property.
- Advise on the value of the specialist property for specified purposes.
|Examination||Unseen exam (3 hours)||100%|
Students should be familiar with the content of the following:
- Malkiel, B. (2015 ), A random walk down Wall Street, New York, W. W. Norton & Company, Inc.
- Baum, A. Commercial Real Estate Investment 2nd Edition. Exeter, Short Run Press,
- Denyer-Green, B. (2009). Compulsory Purchase and Compensation. (9th edition). Estates Gazette.
- Estrada, J. (2011). Understanding Finance. Prentice Hall
- Havard, Tim (2014) Financial Feasibility Studies for Property Investment: Theory and Practice. Abingdon, Routledge.
- Isaac, D. (2003). Property Finance. (2nd edition). Palgrave MacMillan.
- RICS (2011). Red Book: The RICS Valuation Standards. (8th edition). RICS.
- Rees W. and R. Hayward (2002) Valuation principles into practice. Glasgow, Bell and Bain
- Shapiro, E. et al (1943) Modern methods of valuation, 11th edition. London, Routledge.