PROPERTY 351 : Advanced Property Finance and Investment

Business and Economics

2024 Semester One (1243) (15 POINTS)

Course Prescription

An understanding of how to research, analyse and advise on property financing and investment decisions is an essential analytical skill for property professionals. Topics include: asset pricing models, capital structure decision, weighted average cost of capital and adjusted present value, property as an asset class, and financing and investment strategies.

Course Overview

This course is recommended for students who are interested in applying property finance and investment theories into practice. The course will provide students information and skills that may be utilised to effectively manage a property portfolio either under their own management or for a current or future employer. It will also provide them with an opportunity to develop and apply their MS Excel skills to property investment decision making. The course provides insight into the rationale behind financing and investment decisions and how they may differ between various types of investors and clients both locally and overseas. The business sectors where the course content will be of most relevance will include property funds, publicly or privately traded property portfolios, investment property portfolio management and acquisition, tenant/lease managers, mortgage management, property related banking services, property development and valuation, agency in capital markets, consultancy in relation to investment properties.

Course Requirements

Prerequisite: 90 points from PROPERTY 211-281

Capabilities Developed in this Course

Capability 2: Sustainability
Capability 3: Knowledge and Practice
Capability 4: Critical Thinking
Capability 5: Solution Seeking
Capability 6: Communication
Capability 7: Collaboration
Graduate Profile: Bachelor of Property

Learning Outcomes

By the end of this course, students will be able to:
  1. Apply MS Excel to construct an optimal property investment portfolio solving an investment problem, based on own preference and expectations informed by real-world information. (Capability 3.2, 4.2 and 5.1)
  2. Critically evaluate investment strategies and the application of capital asset pricing model for property-related investments. (Capability 3.1 and 4.1)
  3. Conduct sensitivity analyses on financial leverage to equity real return towards sustainable financing under alternative financial methods. (Capability 2.2 and 3.2)
  4. Examine the effect of financing decisions on the cost of capital for property investments. (Capability 4.1)
  5. Evaluate investment value of a property portfolio and the impact of risk-adjusted return on equity on the investment value of the portfolio. (Capability 3.1 and 4.2)
  6. Compose a business report under professional collaboration, towards advising clients under real-world scenarios. (Capability 6.2 and 7.1)

Assessments

Assessment Type Percentage Classification
Assignments 20% Group Coursework
Test 20% Individual Test
Quizzes 10% Individual Coursework
Final Exam 50% Individual Examination
Assessment Type Learning Outcome Addressed
1 2 3 4 5 6
Assignments
Test
Quizzes
Final Exam
Pass Requirements
In order to pass this course you MUST obtain at least 50% of the total marks awarded for the course. In addition, a minimum mark of 40% in the final examination is also expected.

Workload Expectations

This course is a standard 15-point course and students are expected to spend 10 hours per week involved in each 15 point course that they are enrolled in.

In each week for this course, you can expect 3 hours of lectures, within which includes online instruction, quiz participation and practice on case studies. Another 7 hours of of reading, thinking and self-reflection about course materials including readings and preparing for and completing assessments of quizzes, assignment and test and exam preparation.

Delivery Mode

Campus Experience

Students are expected to attend weekly Q&A interactive sessions in class.

Lectures will be available as recordings. Other learning activities, for example online tutorials will be available as recordings.

The course will include online sessions.

The activities for the course are scheduled as a standard weekly timetable.

Learning Resources

Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).

Please remember that the recording of any class on a personal device requires the permission of the instructor.

Required readings will be provided through appropriate links on CANVAS.

Student Feedback

At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.

Your feedback helps teachers to improve the course and its delivery for future students.

Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.

To change question types for individual assessment.

Academic Integrity

The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. This requirement also applies to sources on the internet. A student's assessed work may be reviewed for potential plagiarism or other forms of academic misconduct, using computerised detection mechanisms.

Class Representatives

Class representatives are students tasked with representing student issues to departments, faculties, and the wider university. If you have a complaint about this course, please contact your class rep who will know how to raise it in the right channels. See your departmental noticeboard for contact details for your class reps.

Inclusive Learning

All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.

Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website http://disability.auckland.ac.nz

Special Circumstances

If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.

If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.

This should be done as soon as possible and no later than seven days after the affected test or exam date.

Learning Continuity

In the event of an unexpected disruption, we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and course assessment continues to meet the principles of the University’s assessment policy. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator/director, and if disruption occurs you should refer to the university website for information about how to proceed.

Student Charter and Responsibilities

The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html.

Disclaimer

Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.

In this course students may be asked to submit coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. In exceptional circumstances changes to elements of this course may be necessary at short notice. Students enrolled in this course will be informed of any such changes and the reasons for them, as soon as possible, through Canvas.

Published on 09/02/2024 07:54 a.m.