BAFN611 - Real Estate Finance

Year

Credit points

Campus offering

Prerequisites

BAFN610 Responsible Investment Management

Teaching organisation

Unit rationale, description and aim

Real estate accounts for the substantial proportion of capital formation in Australia and is a particularly popular asset class for both institutional and individual investors. This unit critically examines the academic and professional literature pertaining to investing in real estate, funds flow into Australian real estate over time, legal aspects of real estate, financing residential properties, valuation of income producing properties, financing of corporate real estate, financing real estate projects, and alternative vehicles for real estate investment. This study of real estate finance will enhance your ability to make knowledgeable real estate investment decisions.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - distinguish between different types of real estate investment options available to Australian investors. (GA5, 6, 10) 

LO2 - determine risks specific to real estate investment and determine factors influencing performance of real estate. (GA5, 6) 

LO3 - differentiate between major approaches for the valuation of real estate investments. (GA 5, 6) 

LO4 - evaluate competing real estate financing alternatives and risk management. (GA 5, 6) 

LO5 - conduct real estate investment analysis and make investment recommendations incorporating impact of investment on common good and society. (GA2, 5, 6, 10) 

Graduate attributes

GA2 - recognise their responsibility to the common good, the environment and society 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA10 - utilise information and communication and other relevant technologies effectively.

Content

Topics will include: 

• Funds flow into Australian real estate over time 
• Social responsibility and common good in real estate investments 
• Legal aspects of real estate 
• Risk analysis 
• Taxation of real estate 
• Financing residential properties 
• Valuation of income producing properties 
• Financing of corporate real estate 
• Evaluating and financing real estate projects 
• Alternative vehicles for real estate investment 

Learning and teaching strategy and rationale

ACU’s teaching policy focuses on learning outcomes for students in the form of knowledge, capabilities and background. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning form others. ACU promotes and facilitates learning that is autonomous and self-motivated, which is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied. 

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher order thinking. The unit ensures that learning activities involve real-world scenarios that potentially pave way for ‘real-world’ preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.  

This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platform (LEO-Learning Environment Online) used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.  

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts constructivist approach to learning, which requires alignment of learning outcomes, teaching, learning and assessment and the environment in which learning occurs. Assessment is an integral part of the learning process. Assessment tasks in this unit are aimed at measuring and developing student’s achievement of both the learning outcomes and graduate attributes noted above. In this unit there are multiple forms of formative assessment for a student to assess their progress against the learning objectives as well as three (3) main pieces of summative assessment.  

Overview of assessments

Representative texts and references

Brueggenman WB, Fisher JD 2015, Real estate finance & investments, 15th edn, McGraw-Hill. 

Geltner, DM, Miller, NG, Clayton, J & Eicholtz 2014, Commercial real estate analysis and investments, 3rd edn, OnCourse Learning, Mason, OH. 

Ling, D & Archer, W 2014, Real estate principles: a value approach, 5th edn, McGraw-Hill.