Units
Property Finance
Unit code: UDB341
Contact hours: 3 per week
Credit points: 12
Information about fees and unit costs
Property is a major asset class of available investment options. Due to its distinct characteristics, debt and equity financing plays a major role in investment decisions. As such, the unit develops students’ understanding of property investment and financing techniques and the place of property assets within the capital markets.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 1 | Yes |
Offered in these courses
- UD40
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
It is important for you as a property student to understand the role and nature of property finance as it affects all aspects of property ownership, management, use and development. Such funds may be sourced from the owner/investor's own resources (equity) or more commonly be obtained from other sources, notably banks (debt) and the capital markets where property competes with other asset classes for funding.
This unit seeks to provide a basic level of understanding and competency in property finance fundamentals.
Aims
The aim of this unit is to develop your understanding of the nature and impact of debt and equity finance on investment property and the place of property assets within the capital markets.
Objectives
Upon completion of this unit you should be able to:
1. Identify the sources and characteristics of equity and debt finance for investment property
2. Demonstrate an understanding of loan structures and security instruments
3. Analyse and explain the risks and opportunities relating to financial structuring in property investment
4. Explain the relationship between the Australian capital markets and the property investment industry.
5. Develop the ability to work independently and collaboratively, including managing time and prioritising activities, and being a cooperative and productive team member or leader
Content
Through this unit you will explore key concepts relating property finance in public and private markets. This will include discussion on loan structures, sources of finance, risk:return criteria, security instruments in direct and indirect property markets.
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 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.
Assessment in this unit is a combination of team and individual assignments and a final exam. The composition of your assessment is as indicated below.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:
Report
Description:
Written Report
Approximately 1500 word written report based on an assignment brief to be handed out early in the semester, covering a selected topic specifically related to introductory property financing principles.
Relates to objectives:
(1) Identify the sources and characteristics of equity and debt finance for investment property
(2) Demonstrate an understanding of loan structures and security instruments
(3) Analyse and explain the risks and opportunities relating to financial structuring in property investment
Weight:
25%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Week 6
Assessment name:
Report
Description:
Written report
Approximately 2500 word analytical report based on an assignment brief to be handed out around mid semester, covering a selected topic specifically related to intermediate level property financing principles.
Relates to objectives:
(1) Identify the sources and characteristics of equity and debt finance for investment property
(2) Demonstrate an understanding of loan structures and security instruments
(3) Analyse and explain the risks and opportunities relating to financial structuring in property investment
(4) Explain the relationship between the Australian capital markets and the property investment industry
(5) Develop the ability to work independently and collaboratively, including managing time and prioritising activities, and being a cooperative and productive team member or leader
Weight:
25%
Internal or external:
Internal
Group or individual:
Group
Due date:
Week 12
Assessment name:
Examination (Theory)
Description:
End of semester exam (final)
Invigilated (closed book) exam held during central exam period
Relates to objectives:
(1) Identify the sources and characteristics of equity and debt finance for investment property
(2) Demonstrate an understanding of loan structures and security instruments
(3) Analyse and explain the risks and opportunities relating to financial structuring in property investment
(4) Explain the relationship between the Australian capital markets and the property investment industry
Weight:
50%
Internal or external:
Internal
Group or individual:
Individual
Due date:
End of Semester
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
1. Required Texts
Rowland, P., Australian Property Investment and Financing, Sydney, 2010, Lawbook Co.
2. Recommended Texts
Whipple, T., Property Valuation and Analysis, 2nd edition, Sydney, 2006, Lawbook Co.
3. References
Other references may be provided during the course of the semester.
4. 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
Guides to assignment writing - Learn how to write in specific formats such as a literature review, annotated bibliography or thesis. Refer website located at
If you have questions about doing an assignment, ask at the Library Help Desks, in person, by phone, email, web chat, and SMS.
5. Other Resources
a) You are required to visit and use the Unit Blackboard site:
b) 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.
c) 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 links:
Risk assessment statement
There are no out of the ordinary risks associated with this unit.
Additional Costs
There are no additional costs anticipated in completing 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: 23-Oct-2012
