Course overview
This applied finance course focuses on honing analytical skills in property investment, encompassing both direct and indirect approaches. Key topics include urban economics, individual property evaluation, investment risk concepts, property financing, and debt-risk relationships. Students will explore portfolio construction theories, modern risk management techniques, and alternative investment vehicles like real estate investment trusts (REITs). The course emphasises mathematics and economic theory, with assessments primarily based on mathematical calculations aligned with theoretical concepts. A pre-course quiz assesses fundamental finance knowledge, particularly compound interest and time value of money. While not formally graded, the quiz serves as preparatory material for a smooth transition into the course.
Course learning outcomes
- Critically review and apply appropriate models for evaluating investment decisions
- Critically analyse the various methods of financing property investments
- Identify the risk-return tradeoffs in property investments
- Construct and evaluate portfolios of different asset classes
- Manage the risk of property investments using modern portfolio techniques