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FINN3061: Real Estate Finance

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Type	Tied
Level	3
Credits	20
Availability	Available in 2023/24
Module Cap	None.
Location	Durham
Department	Finance

Prerequisites

Foundations of Finance (FINN1011) and Corporate Finance (FINN2041)

Corequisites

None

Excluded Combinations of Modules

None

Aims

The module seeks:
To provide students with knowledge and understanding of questions in real estate finance linked to appropriate methodologies for their analysis.
To enable students to rigorously explore issues in real estate finance by using computer programming and professional data sources.
To become familiar with the valuation techniques employed in the real estate finance industry.
To prepare students to make sound decisions concerning real estate use and investment.
To provide students with the opportunity to develop the ability to appreciate academic and applied literature relating to real estate finance.

Content

Legal concepts in real estate finance and investment.
House price fundamentals and property valuation.
Determinants of regional house price dynamics.
Formation of housing bubbles.
Real estate financing including: the mortgage contract; residential mortgages; commercial mortgages, government affordability programmes.
Lease and rental contracts and payments.
Risk analysis of real estate investments.
The secondary mortgage market.
International real estate investment.
Real Estate Investment Trusts.

Learning Outcomes

Subject-specific Knowledge:

On completion of this module students should have:
developed an advanced knowledge of the central issues and questions in real estate finance;
developed an advanced knowledge of the transaction processes in the real estate industry;
developed an advanced knowledge of the techniques used to evaluate real estate investment projects.

Subject-specific Skills:

On completion of this module students should be able to:
apply relevant software packages to rigorously explore issues in real estate finance and investment.
identify relevant data sources for real estate valuation analysis.
critically evaluate the appropriateness of different valuation techniques used by real estate professionals.

Key Skills:

Examples are provided to demonstrate how students will have the opportunity to develop the following key skills:
Written Communication - through the formative and summative assignments;
Planning and Organising - observing the strict assignment deadlines; revising relevant material in preparation for assessments;
Problem Solving - by applying appropriate analytical and quantitative skills to evaluate theoretical concepts using real data;
Initiative - by searching relevant literature, identifying recent developments and information in preparation of the summative assignment;
Numeracy - by analysing real estate market data;
Computer Literacy - by using appropriate software programmes to analyse financial data.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

Teaching is by lectures and seminars. Learning takes place through attendance at lectures and participation in workshops, including independent study in solving assigned problems.
Formative assessment is by means of weekly online quizzes.
Summative assessment is via two online tests taken during term time and an assignment.

Teaching Methods and Learning Hours

Activity	Number	Frequency	Duration	Total
Lectures	20	1 per week	1 hr	20
Revision Lectures	2	1 per week in term 3	1 hr	2
Seminars	8	Fortnightly	1 hr	8
Preparation and Reading				170
Total				200

Summative Assessment

Component: Online Test		Component Weighting: 30%
Element	Length / Duration	Element Weighting	Resit Opportunity
Online test 1	45 minutes	50	same
Online test 2	45 minutes	50	same

Component: Assignment		Component Weighting: 70%
Element	Length / Duration	Element Weighting	Resit Opportunity
Assignment	1500 words max	100	same

Formative Assessment

Weekly online quizzes

More information

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