Units

---

Sample subject outline - Semester 2 2013

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

Property economists are continually required to analyse property as an investment and provide investment information. This involves a close scrutiny of investment options, and selection of the most appropriate option given the investor's preferences, goals and market conditions.

This unit provides the basis to enable the property economist to examine the investment's worth over time and take account of financing and tax arrangements, risk and return and comparison against investment objectives.

Aims

The aim of the unit is to develop your understanding of the evaluation of property investment , specifically through the use of discounted cashflow analysis.

Objectives

Upon completion of this unit you should be able to:

1. Identify the investment goals and strategies of property investors based on the nature of property assets.
2. Understand the performance evaluation methods of property investments, incorporating risk analysis.
3. Be competent in the use of appropriate models to quantify the expected performance return of a property investment taking account of finance and taxation.
4. Quantify and justify the assumptions that are incorporated in the financial viability studies.
5. Develop the ability to work independently and collaboratively, including managing time and prioritising activities.

Content

Through this unit you will explore key concepts relating property investment analysis. This will include discussion on investment objectives, concepts of risk and return, investment alternatives, derivation of appropriate discount rates, cashflow modelling, introduction to portfolio theory and taxation impacts.

Approaches to Teaching and Learning

Generally
This unit will involve lectures, tutorials and directed private study. Lectures (normally two hours/week) will convey the essential theoretical background to the unit. Tutorials (normally one hour/week) will help you understand and apply the key concepts via more practical computer based application. You will also be expected to undertake directed private study and read the relevant sections of the required text to supplement the lectures and tutorials.

Lectures
Weekly lectures will be the primary method of teaching for this unit. Lecture material will generally be available for you to download from the Blackboard site each week. You may also be expected to complete required reading prior to lectures. During the lecture, we will work through the lecture material covering the important aspects of each week's work including both theory and practical aspects.

Tutorials
Computer lab tutorials are held on a weekly basis, from Week 2 to Week 12. Tutorials are designed to help you gain a better understanding of the theoretical principles through practical application. They are also designed to assist you in performing the best you can in your assessment items. Tutorials are also an important avenue for students to seek formative feedback from lecturers/tutors.

Assessment

QUT's Assessment Policy is located at MOPP C/5.1. The composition of your assessment is as indicated below.This unit will comprise both formative and summative approaches to assessment involving a mix of formats including both oral and written feedback.

The Lecturer/Tutor will give general verbal feedback of student assessments during lectures and tutorials. More specific feedback for work completed will be achieved primarily via Criterion Referenced Assessment (CRA) forms incorporating written comments.

Assessment name: Mid Semester Examination
Description: Closed book multiple choice examination, conducted during lecture time.
Relates to objectives: 1, 2, 5
Weight: 20%
Internal or external: Internal
Group or individual: Individual
Due date: Week 6

Assessment name: Written Report
Description: Approximately 2500 word analytical report based on the assessment of a property investment opportunity. This assignment will include the creation and analysis of a discounted cashflow for a given investment class asset.
Relates to objectives: 1, 2, 3, 4, 5
Weight: 30%
Internal or external: Internal
Group or individual: Individual
Due date: Week 12

Assessment name: Final Exam
Description: A mixture of problem solving scenarios and calculation type questions.
Relates to objectives: 1, 2, 3, 4, 5
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: Central Exam Period

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

Required Texts
1. Rowland, P., ¿Australian Property Investment and Financing¿, Sydney, 2010, Lawbook Co.

Recommended Texts
1. Whipple, T., ¿Property Valuation and Analysis, 2nd edition¿, Sydney, 2006, Lawbook Co.
2. Robinson, P., ¿Property Valuation and Investment Analysis: A Cashflow Approach¿, Lawbook Co. Melbourne.
3. Compton, T., ¿Rental Property and Taxation: An Australian Investors Guide¿ , 2008, John Wiley and Sons, Milton, Brisbane.

References
Other references may be provided during the course of the semester.

Referencing & Assignment Writing
QUT cite|write is a set of resources to assist the development of citing, referencing and academic writing skills. The resource consists of two booklets (available from the QUT Bookshop) and a number of print-on-demand style guides and writing guides, located on website http://www.citewrite.qut.edu.au/.

Guides to assignment writing - Learn how to write in specific formats such as a literature review, annotated bibliography or thesis. Refer website located at http://www.library.qut.edu.au/learn/learnhow/ for information on Evaluating information, Writing a literature review, Writing a research proposal, Writing an annotated bibliography, Writing research reports and research papers, Writing theses and dissertations, Academic Honesty - How to Avoid Plagiarism, and Research methodologies.

If you have questions about doing an assignment, ask at the Library Help Desks, in person, by phone, email, web chat, and SMS.

Other Resources
1. You are required to visit and use the Unit Blackboard site: https://blackboard.qut.edu.au/ throughout the semester for access to: lecture material, assessment details, additional readings, announcements and other unit information that may be posted from time to time.

2. Students need to have a financial calculator for this unit. Recommended is the Sharp EL-735s financial calculator, which is available from the QUT Book Shop and other general retailers.

3. Students are expected to have intermediate excel skills to succeed in this unit. QUT offers FREE Online IT Training Service available to all staff and students, and all you require is your QUT Access Username and Password. For more information on the Online IT Training please see the following link:
http://www.itsg.qut.edu.au/students/gethelp/ittraining.jsp or
http://www.itservices.qut.edu.au/assistance/training/onlinetrain/

Additional Costs:
There are no extranous costs associated with this unit. You will be required to use a business/financial calculater. A Sharp EL 735 or HP 12C Business/Financial Calculator is recommended as your preferred business calculator, but it is possible to use other business/financial calculators.

Risk assessment statement

There are no out-of-the-ordinary risks associated with this unit.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 19-Jun-2012