CQUniversity Unit Profile
FINC19014 Property Investment and Finance
Property Investment and Finance
All details in this unit profile for FINC19014 have been officially approved by CQUniversity and represent a learning partnership between the University and you (our student).
The information will not be changed unless absolutely necessary and any change will be clearly indicated by an approved correction included in the profile.
General Information

Overview

This unit covers the analysis of property investment over time taking financial and business risk factors into account. You will examine property investments from the financial perspective. You will gain insight into real estate as an investment and how it differs from investment in financial instruments. You will produce an investment appraisal report examining an income producing property asset.

Details

Career Level: Undergraduate
Unit Level: Level 2
Credit Points: 6
Student Contribution Band: 10
Fraction of Full-Time Student Load: 0.125

Pre-requisites or Co-requisites

FINC19011 Business Finance

Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).

Offerings For Term 2 - 2018

Distance

Attendance Requirements

All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).

Class and Assessment Overview

Recommended Student Time Commitment

Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.

Class Timetable

Bundaberg, Cairns, Emerald, Gladstone, Mackay, Rockhampton, Townsville
Adelaide, Brisbane, Melbourne, Perth, Sydney

Assessment Overview

1. Practical Assessment
Weighting: 50%
2. Examination
Weighting: 50%

Assessment Grading

This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.

Previous Student Feedback

Feedback, Recommendations and Responses

Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.

Feedback from Student feedback survey

Feedback

"The pressure of only two assessment pieces is quite high. Perhaps more frequent assessment pieces would be advantageous for checking students understanding levels and how they are understanding the material."

Recommendation

Provide better introduction to the major assessment to defray concerns regarding there only being two assessment items.

Feedback from Student feedback survey

Feedback

I would like to be able to download copies of the videos to watch later without internet access.

Recommendation

Migrate videos to Echo360

Unit Learning Outcomes
On successful completion of this unit, you will be able to:
  1. Analyse the processes involved in investments in property
  2. Evaluate alternative property investment strategies
  3. Apply discounted cash flow techniques to property investments
  4. Incorporate risk analysis into practical investment studies.

The Australian Property Institute (API) has accredited this unit as part of the Bachelor of Property course. This unit contributes to the core knowledge field of the API in Property Finance which includes property investment and it forms pre-requisite studies to the Advanced Valuation unit (PROP19003). The learning outcomes for the unit and the assessments have been designed around the accreditation requirements.

Alignment of Learning Outcomes, Assessment and Graduate Attributes
N/A Level
Introductory Level
Intermediate Level
Graduate Level
Professional Level
Advanced Level

Alignment of Assessment Tasks to Learning Outcomes

Assessment Tasks Learning Outcomes
1 2 3 4
1 - Practical Assessment - 50%
2 - Take Home Exam - 50%

Alignment of Graduate Attributes to Learning Outcomes

Graduate Attributes Learning Outcomes
1 2 3 4
1 - Communication
2 - Problem Solving
3 - Critical Thinking
4 - Information Literacy
5 - Team Work
6 - Information Technology Competence
7 - Cross Cultural Competence
8 - Ethical practice
9 - Social Innovation
10 - Aboriginal and Torres Strait Islander Cultures

Alignment of Assessment Tasks to Graduate Attributes

Assessment Tasks Graduate Attributes
1 2 3 4 5 6 7 8 9 10
1 - Practical Assessment - 50%
2 - Take Home Exam - 50%
Textbooks and Resources

Textbooks

Supplementary

Australian Property Investment and Financing

(2009)
Authors: Patrick Rowland
Law Books
Pyrmont Pyrmont , NSW , Australia
ISBN: 978 0 455 224329
Binding: Paperback

Additional Textbook Information

Earlier editions of Patrick Rowland's property finance texts (Property Investments and their Financing) may suffice if available, however chapter content and order will be the responsibility of students to check.

IT Resources

You will need access to the following IT resources:
  • CQUniversity Student Email
  • Internet
  • Unit Website (Moodle)
  • CoreLogic RPData property information system
  • EndNote: referencing software available from CQUniversity Library.
  • The Property Program Gateway
Referencing Style

All submissions for this unit must use the referencing style: American Psychological Association 6th Edition (APA 6th edition)

For further information, see the Assessment Tasks.

Teaching Contacts
Garrick Small Unit Coordinator
g.small@cqu.edu.au
Schedule
01 Real Estate as Investment Begin Date: 09 Jul 2018

Module/Topic

Real Estate as Investment

Chapter

1 & 2

Events and Submissions/Topic

02 Property Investment Strategies Begin Date: 16 Jul 2018

Module/Topic

Property Investment Strategies

Chapter

3

Events and Submissions/Topic

03 Discounted Cash Flow Appraisal Begin Date: 23 Jul 2018

Module/Topic

Discounted Cash Flow Appraisal

Chapter

6 & 7

Events and Submissions/Topic

04 Taxation and Property Investment Begin Date: 30 Jul 2018

Module/Topic

Taxation and Property Investment

Chapter

5

Events and Submissions/Topic

05 Risk and Uncertainty Modelling Begin Date: 06 Aug 2018

Module/Topic

Risk and Uncertainty Modelling

Chapter

9

Events and Submissions/Topic

Vacation Week Begin Date: 13 Aug 2018

Module/Topic

Chapter

Events and Submissions/Topic

06 Debt Markets and Investment Strategies Begin Date: 20 Aug 2018

Module/Topic

Debt Markets and Investment Strategies

Chapter

4 & 13

Events and Submissions/Topic

07 Forecasting Theory Begin Date: 27 Aug 2018

Module/Topic

Forecasting Theory

Chapter

8

Events and Submissions/Topic

08 Historical Trends, Culture & Risk Begin Date: 03 Sep 2018

Module/Topic

Historical Trends, Culture & Risk

Chapter

14

Events and Submissions/Topic

09 Money and Interest Rate Theory Begin Date: 10 Sep 2018

Module/Topic

Money and Interest Rate Theory

Chapter

12

Events and Submissions/Topic

Investment Appraisal Assignment due on Friday.


Investment Appraisal Due: Week 9 Friday (14 Sept 2018) 11:59 pm AEST
10 Property Development Investment Begin Date: 17 Sep 2018

Module/Topic

Property Development Investment

Chapter

Events and Submissions/Topic

11 Wealth Effects within property Begin Date: 24 Sep 2018

Module/Topic

Wealth Effects within property

Chapter

15

Events and Submissions/Topic

Investment Appraisal Assignment returned on Friday.

12 Portfolio Investment Begin Date: 01 Oct 2018

Module/Topic

Portfolio Investment

Chapter

10

Events and Submissions/Topic

Review/Exam Week Begin Date: 08 Oct 2018

Module/Topic

Chapter

Events and Submissions/Topic

Exam Week Begin Date: 15 Oct 2018

Module/Topic

Chapter

Events and Submissions/Topic

Assessment Tasks

1 Practical Assessment

Assessment Title
Investment Appraisal

Task Description

An advanced investment appraisal of an actual property using Discounted Cash Flow analysis. This assignment will give you experience using the techniques currently employed in the appraisal of major investment properties. In this exercise you will use as your case study an actual property of your choice, source actual data relevant to its investment performance, and perform advanced investment appraisal analysis. It provides the opportunity to apply analysis techniques developed in class on an actual property. It will use a simple property to facilitate the acquisition of the relevant data, but the analysis will go beyond what is commonly applied to simple investment properties. Having completed this assignment you will be able to analyse a wide range of investment properties, from the very simple to the most complex.


Assessment Due Date

Week 9 Friday (14 Sept 2018) 11:59 pm AEST

Submit MS Word compatible formats (eg. .doc. .docx, .rtf, Open Office format). Pdf format will not be accepted.


Return Date to Students

Week 11 Friday (28 Sept 2018)


Weighting
50%

Assessment Criteria

The Assignment will be marked using criteria and rubrics available in detail on the Moodle site. The general grading expectations may be found in the General Grading Rubrics for Property Economics Units found on the Property Gateway. The criteria for this assignment are as follows:

Criterion
1 Presentation
2 Property Description
3 Economic Outlook
4 Data Quality
5 Risk Analysis
6 DCF Model (Test data)
7 Practitioner Contact
8 Negative Gearing
9 Insightfulness


Referencing Style

Submission
Online

Submission Instructions
See Moodle site

Learning Outcomes Assessed
  • Analyse the processes involved in investments in property
  • Evaluate alternative property investment strategies
  • Apply discounted cash flow techniques to property investments
  • Incorporate risk analysis into practical investment studies.


Graduate Attributes
  • Communication
  • Problem Solving
  • Critical Thinking
  • Information Literacy
  • Team Work
  • Information Technology Competence

Examination

Outline
Complete an invigilated examination

Date
During the examination period at a CQUniversity examination centre

Weighting
50%

Length
120 minutes

Exam Conditions
Closed Book

Materials
Calculator - all non-communicable calculators, including scientific, programmable and graphics calculators are authorised
Dictionary - non-electronic, concise, direct translation only (dictionary must not contain any notes or comments).


Learning Outcomes Assessed
  • Analyse the processes involved in investments in property
  • Evaluate alternative property investment strategies
  • Apply discounted cash flow techniques to property investments


Graduate Attributes
  • Communication
  • Problem Solving
  • Critical Thinking
  • Cross Cultural Competence
  • Ethical practice

Academic Integrity Statement

As a CQUniversity student you are expected to act honestly in all aspects of your academic work.

Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.

When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.

Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.

As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.

What is a breach of academic integrity?

A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.

Why is academic integrity important?

A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.

Where can I get assistance?

For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.

What can you do to act with integrity?