REAL ESTATE DEVELOPMENT, INVESTMENT AND VALUATION

Course Background

Real Estate is developed or purchased for owner-occupation or as an investment for rental income or subsequent resale when capital values appreciate. Financing requirements can generally be short-term in the case of development projects or longer term in funding real estate investments.

Funds can be raised internally or externally. Contributors to external funds include individuals, banks, managed property funds and securitisation or REITS. The capacity to arrange for cheaper finance can give real estate developers and investors a competitive edge as large sums are involved. Factored in the financing process are considerations of costs, appraisal of revenue streams and risks and return for lenders and borrowers.

Course Objectives

The course will provide knowledge and understanding of real estate economics and finance covering:

• Real Estate and Real Estate Development as Investment Vehicles
• Capital Markets and Financial Institutions
• Concepts of Value and Worth In Real Estate Development and Investment
• Overview of The Traditional Approaches To Real Estate Appraisal-Valuation
• Evaluation of Building Cost-in-Use
• Traditional and Contemporary Real Estate Finance and Risk Considerations

Course Outline

• REAL ESTATE AND REAL ESTATE DEVELOPMENT
  • Real Estate Cycles
  • Real Estate Markets
  • Real Estate Development Process
• REAL ESTATE INVESTMENT AND FINANCE
  • Characteristics of Real Estate Investments
  • Types of Real Estate Investments
  • Real Estate Financing and Lending Criteria
• REAL ESTATE INVESTMENT APPRAISAL: FUNDAMENTAL CONCEPTS
  • Value and Worth
  • Time Value of Money
  • Income & Income Streams
  • Yield and Capital Value
• REAL ESTATE INVESTMENT APPRAISAL: BASIC APPROACHES
  • Comparison Method
  • Investment Method
  • Residual Method
  • Profit Method
  • Contractors Method
• TRADITIONAL REAL ESTATE FINANCING: PRINCIPLES & PRACTICE
  • Debt Financing
  • Equity Financing
  • Sale and Lease Back
  • Mortgages
• CONTEMPORARY REAL ESTATE FINANCING: REITS
  • Characteristics of Real Estate Investment Trusts (REITS)
  • Equity and Mortgage REITS
  • REITS Financing

Who should take this course?

The course will benefit those who have a vested interest in buildings including:

• Developers
• Building Owners
• Government Officials
• Architects
• Engineers
• Project Managers
• Quantity Surveyors
• Contractors / Sub-Contractors / Suppliers
• Property Managers
• Facilities Managers
• Maintenance Managers
• Management Corporations
• Town Councils
• and Others