Real Estate Finance
Gold Coast, Australia
Area of Study
Finance, Real Estate
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4 - 6
Hours & Credits
This course introduces students to the application of the fundamental finance principles and theories in the analysis of real estate and property financing and investment. This course therefore studies the relevant finance tools and techniques in the context of the real estate and property markets paying particular attention to the important features and characteristics of the property markets as well as the relevant aspects of the financial markets and economy.
Although the institutions, regulations, and structure of the real estate and property finance will continue to evolve over time, the fundamentals remain unchanged. This course introduces students to these fundamental economic and finance principles. As a result you will be able to understand the structure and operation of real estate and property markets as they evolve and change over time.
An important aim of this course is to equip students with basic knowledge and skills required of a professional working in the real estate industry. The emphasis of the course is on sound practices and judgement and ethical values, lack of which, as the Global Financial Crisis (GFC) has shown, can have catastrophic economic and financial consequences not just in the real estate and property markets but in society more generally.
After successfully completing this course you should be able to:
1 Describe and understand how income-producing properties fit within the world of investments
2 Understand the main features of properties that determine their potential to earn a reliable income and to show capital appreciation.
3 Apply the techniques of basic financial maths to financial transactions, including real estate finance
4 Research the availability of mortgages and understand the principles of underwriting.
5 Understand and make basic forecasts in relation to the real estate market.
6 Explain how the level of borrowing influences the return on equity and how loan interest rates are set and change over time
7 Discuss some of the risks associated with investing in residential and commercial properties
8 Discuss the sources and important features of mortgages for property investors
9 Understand the forces that create real estate market trends, cycles and structural changes, noting at the same time the apparent and severe limitations of forecasting
10 Discuss the risks of income producing properties and how to measure those risks
11 Explain why property funds have become a popular alternative to direct property investment.
12 Understand the value of property in investment portfolios and how some properties may be better for a portfolio than others
13 Explain how Australian property funds raise capital to buy and improve properties and for other operations
14 Discuss the ways that fund managers choose a mix of debt and equity to buy and improve properties and for other operations
Quiz #1-Weighted 10%/10
Mid Semester Exam-Weighted 20%/20
Individual Assignment-Weighted 10%/10
Quiz #2-Weighted 10%/10
Final Exam-Weighted 50%/50
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.