USB245 Property Investment Analysis
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | USB245 |
|---|---|
| Prerequisite(s): | USB144 or USB242 |
| Equivalent(s): | UDB246 |
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
| CSP student contribution | $2,040 |
| Pre-2021 CSP student contribution | $1,597 The pre-2021 commonwealth supported place (CSP) contribution amount only applies to students enrolled in a course prior to 2021. To learn more, visit our Understanding your fees page. |
| Domestic tuition unit fee | $3,024 |
| International unit fee | $4,176 |
Unit Outline: Semester 2 2024, Gardens Point, Internal
| Unit code: | USB245 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | USB144 or USB242 |
| Equivalent: | UDB246 |
| Coordinator: | Connie Susilawati | c.susilawati@qut.edu.au |
Overview
This unit aims to provide students with an understanding of the investment markets and the role of property as an investment asset class. The unit further develops the skills and techniques required for the analysis of property investment objectives, strategies, and performance. The students will explore the concepts of return and risk, the discounted cash flow (DCF) analysis, the basics of investment decision (NPV, IRR, Financial ratios), measurement of property investment performance, the impact of financing and taxation on investment returns, portfolio theory and the role of real estate in mixed asset portfolios.
This unit will help students develop the understanding and financial modelling skills necessary to become successful property investment analysts and/or investors.
Learning Outcomes
On successful completion of this unit you will be able to:
- Identify the investment goals and strategies of property investors.
- Calculate and interpret the key performance measures of income producing properties, incorporating risk analysis
- Construct, quantify and justify discounted cash flow models to measure the expected performance of a property investment taking account of finance and taxation.
- Present solutions through written communication.
- Collaborate to solve problems and achieve shared goals.
Content
Learning outcomes will be achieved through coverage of the following topics:
- An introduction to investment fundamentals
- Investment objectives
- Concepts of risk and return
- Investment alternatives
- Cashflow modelling
- Derivation of appropriate discount rates
- Return measures
- The impact of financing and taxation on investment returns
- Risk analysis
- Portfolio theory
Learning Approaches
This unit engages you in your learning through a theory-to-practice approach, with a large proportion of the unit made up of practical application of basic theoretial concepts. This unit will involve lectures, tutorials and directed private study. Lectures (normally two (2) hours/week) will convey the essential theoretical background to the unit. Tutorials (normally one (1) hour/week) are designed to engage you in collaborative activities with your peers and tutors. Tutorials 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 and other readings 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 Canvas 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. 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.
Your participation in the unit will include:
- Engagement in weekly lectures to introduce new concepts
- Independent review of online resources and completion of online learning activities to deepen your understanding of key concepts
- Weekly tutorials to provide the opportunity to complete practice exercises to develop the skills you will need to develop the discounted cash flow model
The unit includes embedded student success resources for professional report writing skills and online training modules to build skills in MS Excel and developing financial modelling (feasibility study).
Feedback on Learning and Assessment
Feedback in this unit is provided in the following ways:
- Marking rubrics will be provided to show the expectations for each assessment item.
- Marking rubrics with comments will be returned to you via the online submission portal.
- Lecture / tutorial sessions are available for group and individual feedback prior to the completion of assessments.
- Generic comments will be provided via QUT Canvas and in class.
- Self-Feedback - Reflect on skills and identify what support and resources are needed
- Peer feedback - Group work
- Adaptive feedback - Practice quizzes
- Expert feedback - Guest lectures
- Teacher feedback: Part A is draft assessment and getting feedback for Part B
Assessment
Overview
The assessment in this unit aims to support your achievement of the learning outcomes and has been designed to provide the opportunity for you to perform real world tasks and develop skills in working with professional teams. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid semester exam
Mid semester exam which tests your knowledge of the early weeks of unit content.
Assessment: Simulation
Acting as property analysts for an investor who wants to purchase an income producing property, you will need to simulate a real world project. You and your partner will be required to create a discounted cash flow model in MS Excel and provide an associated analytical report based on a provided property investment scenario. You will be required to demonstrate your understanding of discounted cash flow modelling together with investment goals and objectives, analysis of key performance measures and risks, taking into account finance and taxation considerations as they relate to property investments.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Assessment: End semester Exam
In the end of semester exam, you will act as a property investment analyst and calculate information to provide recommendations for investment. You will also demonstrate your knowledge of all the material covered during the semester.
Academic Integrity
Students are expected to engage in learning and assessment at QUT with honesty, transparency and fairness. Maintaining academic integrity means upholding these principles and demonstrating valuable professional capabilities based on ethical foundations.
Failure to maintain academic integrity can take many forms. It includes cheating in examinations, plagiarism, self-plagiarism, collusion, and submitting an assessment item completed by another person (e.g. contract cheating). It can also include providing your assessment to another entity, such as to a person or website.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Further details of QUT’s approach to academic integrity are outlined in the Academic integrity policy and the Student Code of Conduct. Breaching QUT’s Academic integrity policy is regarded as student misconduct and can lead to the imposition of penalties ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Costs
Additional Costs
You may choose to have a financial calculator for this unit. Recommended is the Sharp EL-735s or EL-738 financial calculator, which is available from the QUT Book Shop and other general retailers. Other financial calculators may also be suitable.
Resources
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 free online resource is 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
You are also required to use the following:
- The unit website on QUT's Canvas
- QUT Library Databases
- QUT Cite| Write: You can access QUT cite/write online (Free download from QUT library)
Additional Support
You are expected to have intermediate excel skills to succeed in this unit. QUT offers FREE Online technology training services available to all staff and students, and all you require is your QUT Access Username and Password. For more information on online technology training go to Learning tools and software
You are expected to read the financial press to keep up to date with the practical application of property finance and investment concepts. Hard copy editions of the Australian Financial Review and The Australian are available daily from the QUT Library. On-line versions are also available via various databases also available through the QUT Library (eg. Property Council of Australia etc).
Resource Materials
Prescribed text(s)
Rowland, P.(2010), Australian Property Investment and Financing, Sydney, 2010, Lawbook Co.
Recommended text(s)
Geltner, D., N.G. Miller, J. Clayton and P. Eicholtz (2014), Commercial Real Estate Analysis & Investments, 3rd Edition, South West Education, USA.
Compton, T.(2012), "Rental Property and Taxation: An Australian Investors Guide" , 4th edition, John Wiley and Sons, Hoboken.
Ling, D. and W.R. Archer (2021) Real Estate Principles: A Value Approach, 6th Edition, Mchill-hill/Irwin Series in Finance, Insurance and Real Estate, New York, McGraw-Hill Irwin
Risk Assessment Statement
There are no extraordinary risks associated with the classroom/lecture activities in this unit.
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.UD05 Bachelor of Property Economics
- Apply theoretical knowledge and technical skills, including fundamentals of building construction and knowledge of legal, social, cultural, and technological contexts, required to manage property assets and investment portfolios; analyse property markets, the drivers of property value and the feasibility of development; and identify future funding and transaction processes.
Relates to: ULO1, ULO3, Mid semester exam, Simulation, End semester Exam - Think critically and innovatively to solve problems by applying methodologies and calculations to identify innovative solutions and sustainability strategies and evaluate the feasibility of property development and investment opportunities.
Relates to: ULO2, ULO3, Mid semester exam, Simulation, End semester Exam - Analyse data using current proprietary software and strategies to evaluate financial and property market trends to inform current and future property decisions.
Relates to: ULO2, ULO3, Simulation, End semester Exam - Communicate and collaborate strategically in professional contexts with diverse stakeholders
Relates to: ULO4, ULO5, Simulation, End semester Exam - Display professional, ethical judgment and initiative, adapt to social, economic, technological and environmental challenges, and lead and manage people with consideration for different cultural perspectives and priorities.
Relates to: Simulation
Unit Outline: Semester 2 2024, Online
| Unit code: | USB245 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | USB144 or USB242 |
| Equivalent: | UDB246 |
Overview
This unit aims to provide students with an understanding of the investment markets and the role of property as an investment asset class. The unit further develops the skills and techniques required for the analysis of property investment objectives, strategies, and performance. The students will explore the concepts of return and risk, the discounted cash flow (DCF) analysis, the basics of investment decision (NPV, IRR, Financial ratios), measurement of property investment performance, the impact of financing and taxation on investment returns, portfolio theory and the role of real estate in mixed asset portfolios.
This unit will help students develop the understanding and financial modelling skills necessary to become successful property investment analysts and/or investors.
Learning Outcomes
On successful completion of this unit you will be able to:
- Identify the investment goals and strategies of property investors.
- Calculate and interpret the key performance measures of income producing properties, incorporating risk analysis
- Construct, quantify and justify discounted cash flow models to measure the expected performance of a property investment taking account of finance and taxation.
- Present solutions through written communication.
- Collaborate to solve problems and achieve shared goals.
Content
Learning outcomes will be achieved through coverage of the following topics:
- An introduction to investment fundamentals
- Investment objectives
- Concepts of risk and return
- Investment alternatives
- Cashflow modelling
- Derivation of appropriate discount rates
- Return measures
- The impact of financing and taxation on investment returns
- Risk analysis
- Portfolio theory
Learning Approaches
This unit engages you in your learning through a theory-to-practice approach, with a large proportion of the unit made up of practical application of basic theoretial concepts. This unit will involve lectures, tutorials and directed private study. Lectures (normally two (2) hours/week) will convey the essential theoretical background to the unit. Tutorials (normally one (1) hour/week) are designed to engage you in collaborative activities with your peers and tutors. Tutorials 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 and other readings 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 Canvas 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. 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.
Your participation in the unit will include:
- Engagement in weekly lectures to introduce new concepts
- Independent review of online resources and completion of online learning activities to deepen your understanding of key concepts
- Weekly tutorials to provide the opportunity to complete practice exercises to develop the skills you will need to develop the discounted cash flow model
The unit includes embedded student success resources for professional report writing skills and online training modules to build skills in MS Excel and developing financial modelling (feasibility study).
Feedback on Learning and Assessment
Feedback in this unit is provided in the following ways:
- Marking rubrics will be provided to show the expectations for each assessment item.
- Marking rubrics with comments will be returned to you via the online submission portal.
- Lecture / tutorial sessions are available for group and individual feedback prior to the completion of assessments.
- Generic comments will be provided via QUT Canvas and in class.
- Self-Feedback - Reflect on skills and identify what support and resources are needed
- Peer feedback - Group work
- Adaptive feedback - Practice quizzes
- Expert feedback - Guest lectures
- Teacher feedback: Part A is draft assessment and getting feedback for Part B
Assessment
Overview
The assessment in this unit aims to support your achievement of the learning outcomes and has been designed to provide the opportunity for you to perform real world tasks and develop skills in working with professional teams. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid semester exam
Mid semester exam which tests your knowledge of the early weeks of unit content.
Assessment: Simulation
Acting as property analysts for an investor who wants to purchase an income producing property, you will need to simulate a real world project. You and your partner will be required to create a discounted cash flow model in MS Excel and provide an associated analytical report based on a provided property investment scenario. You will be required to demonstrate your understanding of discounted cash flow modelling together with investment goals and objectives, analysis of key performance measures and risks, taking into account finance and taxation considerations as they relate to property investments.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Assessment: End semester Exam
In the end of semester exam, you will act as a property investment analyst and calculate information to provide recommendations for investment. You will also demonstrate your knowledge of all the material covered during the semester.
Academic Integrity
Students are expected to engage in learning and assessment at QUT with honesty, transparency and fairness. Maintaining academic integrity means upholding these principles and demonstrating valuable professional capabilities based on ethical foundations.
Failure to maintain academic integrity can take many forms. It includes cheating in examinations, plagiarism, self-plagiarism, collusion, and submitting an assessment item completed by another person (e.g. contract cheating). It can also include providing your assessment to another entity, such as to a person or website.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Further details of QUT’s approach to academic integrity are outlined in the Academic integrity policy and the Student Code of Conduct. Breaching QUT’s Academic integrity policy is regarded as student misconduct and can lead to the imposition of penalties ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Costs
Additional Costs
You may choose to have a financial calculator for this unit. Recommended is the Sharp EL-735s or EL-738 financial calculator, which is available from the QUT Book Shop and other general retailers. Other financial calculators may also be suitable.
Resources
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 free online resource is 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
You are also required to use the following:
- The unit website on QUT's Canvas
- QUT Library Databases
- QUT Cite| Write: You can access QUT cite/write online (Free download from QUT library)
Additional Support
You are expected to have intermediate excel skills to succeed in this unit. QUT offers FREE Online technology training services available to all staff and students, and all you require is your QUT Access Username and Password. For more information on online technology training go to Learning tools and software
You are expected to read the financial press to keep up to date with the practical application of property finance and investment concepts. Hard copy editions of the Australian Financial Review and The Australian are available daily from the QUT Library. On-line versions are also available via various databases also available through the QUT Library (eg. Property Council of Australia etc).
Resource Materials
Prescribed text(s)
Rowland, P.(2010), Australian Property Investment and Financing, Sydney, 2010, Lawbook Co.
Recommended text(s)
Geltner, D., N.G. Miller, J. Clayton and P. Eicholtz (2014), Commercial Real Estate Analysis & Investments, 3rd Edition, South West Education, USA.
Compton, T.(2012), "Rental Property and Taxation: An Australian Investors Guide" , 4th edition, John Wiley and Sons, Hoboken.
Ling, D. and W.R. Archer (2021) Real Estate Principles: A Value Approach, 6th Edition, Mchill-hill/Irwin Series in Finance, Insurance and Real Estate, New York, McGraw-Hill Irwin
Risk Assessment Statement
There are no extraordinary risks associated with the classroom/lecture activities in this unit.
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.UD05 Bachelor of Property Economics
- Apply theoretical knowledge and technical skills, including fundamentals of building construction and knowledge of legal, social, cultural, and technological contexts, required to manage property assets and investment portfolios; analyse property markets, the drivers of property value and the feasibility of development; and identify future funding and transaction processes.
Relates to: ULO1, ULO3, Mid semester exam, Simulation, End semester Exam - Think critically and innovatively to solve problems by applying methodologies and calculations to identify innovative solutions and sustainability strategies and evaluate the feasibility of property development and investment opportunities.
Relates to: ULO2, ULO3, Mid semester exam, Simulation, End semester Exam - Analyse data using current proprietary software and strategies to evaluate financial and property market trends to inform current and future property decisions.
Relates to: ULO2, ULO3, Simulation, End semester Exam - Communicate and collaborate strategically in professional contexts with diverse stakeholders
Relates to: ULO4, ULO5, Simulation, End semester Exam - Display professional, ethical judgment and initiative, adapt to social, economic, technological and environmental challenges, and lead and manage people with consideration for different cultural perspectives and priorities.
Relates to: Simulation