FINC 3009 Property Finance

Credit Points 10

Legacy Code 200875

Coordinator Mustapha Bangura Opens in new window

Description The aim of this unit is to provide insight into property finance in Australia and overseas. Students critically review equity and debt financing and examine the financing alternatives available, as well as methods for evaluating these alternatives. Students also examine the impact of debt financing on a property and evaluate the taxation aspects of property transactions. In addition, students gain both a theoretical and an applied understanding of an after-tax cash flow projection in this unit. International property finance is also addressed.

School Business

Student Contribution Band HECS Band 4 10cp

Check your HECS Band contribution amount via the Fees page.

Level Undergraduate Level 3 subject

Equivalent Subjects LGYB 6469 Property Finance and Tax FINC 3010 Property Finance and Tax

Restrictions External offerings for this subject are only available to students who are enrolled in a Property program or field of study.

Assumed Knowledge

It is assumed that students will have a sound knowledge of:
1. Valuation and financial mathematics
2. Concepts of discounted cash flow analysis and application
3. Statutory valuation legislation and procedures
4. Property portfolio analysis and property investment analysis and application

Learning Outcomes

On successful completion of this subject, students should be able to:
  1. Explain the financial environment of Australia.
  2. Assess and develop optimal financing strategies for property investments.
  3. Outline the factors that determine the impact of leverage upon returns from property investments and developments.
  4. Assess the impact of taxation on potential outcomes from investments in property.

Subject Content

1. Overview of property investment financing.
2. The Australian financial system.
3. Mortgage loans including fixed and variable interest rate.
4. Financing analysis of residential properties and income-producing properties.
5. Financial risk analysis.
6. Property taxation (taxes on income, capital, transaction taxes, land tax).
7. Taxation and property investment implications.

Assessment

The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.

Item Length Percent Threshold Individual/Group Task
Report 2,500 words 50 N Individual
Final examination 2 hours 50 N Individual

Prescribed Texts

  • Brueggeman & Fisher 2011, Real estate finance and investments, 14th edn, McGraw-Hill, Boston.

Teaching Periods

2022 Semester 2

Parramatta City - Macquarie St

Day

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Parramatta External

External

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