FIN567 Investing in Property (8)

CSU Discipline Area: Economics and Finance (ECFIN)

Duration: One session

Abstract:

This subject examines an investor’s motivation for investing in various types of property asset classes, including residential, commercial, industrial, property funds and derivatives. It discusses the appropriateness of each type of property investment relative to an investor’s appetite for risk. Students will gain an understanding of how to evaluate income-producing properties and the effects and risks of borrowing for property investment. The features of the Australian taxation system as they apply to property investment will also be discussed. Property strategies and case studies will be used to outline the key points.

+ Subject Availability Modes and Locations

Session 3
Distance	Bathurst

Continuing students should consult the SAL for current offering details: FIN567

Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Enrolment restrictions:

Available only to students enrolled in Postgraduate Courses in the Faculty of Business

Objectives:

Upon successful completion of this subject, students should:

· Be able to analyse investors and their motives for investing in Australian property markets

· Be able to evaluate income-producing properties suitable for private investors

· Be able to discuss the basic fundamentals for securing finance

· Be able to analyse the effect of increasing returns by borrowing and understanding the risks when borrowing

· Be able to describe how Australian property funds raise and structure capital

· Be able to explain the securitisation process for property loans

· Be able to analyse the risks of income-producing properties and discuss methods for forecasting property performance

· Be able to discuss methods used for measuring property investment performance

· Be able to describe the features of the Australian taxation system as they apply to property investors

· Be able to explain the characteristics and evaluation of different property asset classes

Syllabus:

The subject will cover the following topics:

Part 1 – Introduction – Property Investment Basics

· Properties as Investments

· Comparing Property Investments

· Rental/Valuation/Other Issues

Part 2 – Borrowing/Financing to Acquire Properties

· Borrowing to Acquire Properties

· The Consequences of Borrowing

· Capital Raisings & Capital Structure

· Property Debt Securitisation

Part 3 – Property Investing Risks

· Risk Assessment & Management

· Return on Investment

· Taxation of Property Investments

Part 4 – Property Investing Derivatives

Property Funds Management /Real Estate Investment Trusts

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