Learning outcome

After successfully completing the course, the candidate will have achieved the following learning outcomes:

The candidate:

• Can apply finance theory on the real estate market
• Can perform mortgage calculations
• Can evaluate the profitability of real estate investments
• Can analyse risks associated to real estate investments
• Has knowledge of some macro economic and environmental factors which may affect real estate investments

Course Description

Specialised topics which will be covered:

• Short repetition of the main topics from 6008 Investment and Finance I, that is, cash-flow, net present value, internal rate of return, basic interest rate calculations, and risk
• Value increases in the property market, yield level and the connection with macroeconomic conditions such as term structure of interest rates and the level of inflation
• Financing real estate, debt-equity ratio and risk
• Investment in real estate
• Risk factors in real estate
• Derivative markets: Options and hedging strategies
• Environmental risks and property

Teaching and Learning Methods

6-8 hours of lectures per week during the spring semester.

Assessment Methods

• Written examination, 4 hours, counting for 90% of grade
• Home-exam (2 assignments), counting for 10% of grade

Minor adjustments may occur during the academic year, subject to the decision of the Dean