FACULTY OF TECHNOLOGY MANAGEMENT AND

BUSINESS

LECTURE PLAN

1 Name and Code of Course REAL ESTATE INVESTMENT AND APPRAISALS (BPE 34003)

2 Synopsis Real estate investment and appraisals in context, investment

fundamentals, the math, cash flows proformas, investment method
– discounted cash flow, investment analysis and taxation of income
property, financial leverage and financing alternatives, risk analysis.

3 Name(s) of academic staff ASSOCIATE PROFESSOR DR. MOHD LIZAM BIN MOHD DIAH

4 Semester and Year offered 2 2018

5 Credit Value 3

6 Pre-requisite (if any) -na-

7 Course Learning Outcome(s)
CLO 1: Conduct assessment on real estate investment projects
CLO 2: Compare and identify real estate investment opportunity for
different categories of investors.
CLO 3: Use appropriate techniques to show, analyse and solve
problems related to real estate investment.

8 Mapping of the course/module to the Programme Learning Outcomes

Programme
Learning
Outcomes (PLO)
Teaching KPI
Course LOs / Program LOs Assessment/
Methods
PLO X
PLO 1

PLO 2

PLO 7

Conduct assessment on real / Class and Mid-term 50%

estate investment projects software test, final Students
demo. examination. achieve
C+ 55
Compare and identify real estate / Case Individual 50%
investment opportunity for different study and assignment Students
categories of investors. class. and final achieve
examination C+ 55
Use appropriate techniques to / Class, Final 50%
show, analyse and solve case study examination Students
problems related to real estate and and group achieve
investment. software assignment. C+ 55
demo.

*Indicate the primary causal link between the CLO and PLO by ticking “√” the appropriate box.

Edition: 1 Page 1 of 5
Published date: X January 2018
 Transferable Skills (if Skill(s) How to Assessment
applicable) instill/develop the Method
skills
(Skills learned in the course of
study which can be useful and
utilised in other settings) Analytical Computation of Test, final
cash flow stream examination and
based on financial group project.
approach.

Data acquisition Internet based Individual and

and analysis searching strategy group project.
and using MS
Excel to analyse
data.

Content outline of the course/module and the student learning time (SLT) per topic

Teaching and Learning Activities

Guided Learning

Guided Learning

Learning (NF2F)
(F2F)

Independent
Total

(NF2F)
Week Course Content CLO
SLT
Practical
Tutorial
Lecture

Others

Real Estate Investment and

Appraisals in Context
- Price, value and
worth
- Supply and demand
1 as determinants of CLO2 3 3 6
price and value.
- The investment and
real estate market
- Real estate
investment appraisal
and capital market
Investment Fundamentals
- Types of investment
- Types of investor
- Nominal and real
return on investments
- The “ideal”
investment CLO2
2 3 3 6
- Risk and yields CLO3
- The reverse yield gap
- Real estate as an
investment
- Investment
evaluation and
selection.

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Published date: 1 January 2018
 Method of purchase and sale
The Math
- Compounding and
discounting CLO2
3-4 6 6 14
- Sinking fund and CLO3
mortgages
- Capitalisation
Cash Flow Proformas
- Proformas and cash
flow projection. CLO1
5 3 3 9
- Discount rates: the CLO2
opportunity cost of
capital
7 Mid-semester break
Investment Method –
Discounted Cash Flow
- DCF method
- Use of spreadsheets
- Future property rental
and capital growth
- Equated yield and
implied rental growth
formulae
- Application of the
method to property
investments,
including holding
period and exit yield. CLO1
6-9 9 9 18
- Comparing DCF CLO3
versus traditional
method
- Shortcut freehold
DCF valuations
- Leasehold DCF
valuations
- Combining the
methods in a single
investment appraisal:
block income, layer,
equivalent yield and
equated yield/DCF
approaches.
Investment Analysis and
Taxation of Income Property
- Real estate market
characteristics and
investment
CLO1
strategies.
10-12 - Making investment – CLO2 9 9 18
projecting cash flow CLO3
- Investment analysis –
IRR, NPV.
- Debt financing
- Taxation of income
producing real estate

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Published date: 1 January 2018
 - Taxable income from
operation of real
estate
- Taxable income from
disposal of
depreciable real
property.
- After-tax investment
analysis
Financial Leverage and
Financing Alternatives
- Introduction to
financial leverage
- Break-even interest
rate
- Risk and leverage
- Types of financing CLO1
13-14 6 6 14
package: CLO3
participation loan,
sale and leaseback,
interest only, accrual
loans, convertible
mortgages.
- Comparison of
financing alternative.
Risk Analysis
- Comparing
investment returns
- Types of risk
- Due diligence in real CLO2
15 estate investment risk 3 3 10
CLO3
analysis.
- Sensitivity analysis
- Partitioning the IRR
- Variations in returns
and risk.
TOTAL 42 42 84
Percentage Total
Continous Assessment CLO (%)
F2F NF2F
SLT
1. Mid-term test 20 0 2 2
2. Individual assignment 15 0 11 11
3. Group Assignment 25 0 20 20

TOTAL 60 33
Percentage Total
Final Assessment CLO (%)
F2F NF2F
SLT
1. Final Examination 40 0 3 3
TOTAL 40
TOTAL SLT 120
*F2F = face to face, NF2F=Non Face to Face

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Published date: 1 January 2018
 11 Identify special requirement of MS Excel.
resources to deliver the course
(e.g., software, nursery,
computer lab, simulation room)

12 Main references supporting

the course and
(1) Brueggeman, W. B. and Fisher, J. D. (2002). Real
Additional references th
Estate Finance & Investment. 11 Edition,New
supporting the course
York: McGraw-Hill Higher Education.

(2) David, M. G. & Norman, G. M. (2001). Commercial

Real Estate Analysis and
Investments. Ohio: Thomson Learning.

(3) Isaac, D. (2002). Property Investment. New York:

Palgrave.
(4) Andrew, B. (2008). Property Investment Appraisal.
Oxford: Blackwell.
(5) Kubba, S. A. A. (2008). Property Condition
Assessments. New York: McGraw-Hil.
(6) Timothy, H. G. (2005). The Real Estate Investment
Handbook. Hoboken, NJ: John Wiley.

13 Other additional information

14 Course Attendance / 1. Students must attend not less than 80% of the contact hours
Regulations for every course including Compulsory Attendance Course
(Hadir Wajib – HW) and Attendance Only Course (Hadir
Sahaja – HS).
2. Student who does not fulfill (1) of the above is not allowed to
attend further lectures and is not allowed to sit for any further
assessment. Zero mark (0) will be given to student who fails to
comply with (1). As for Compulsory Attendance Course (Hadir
Wajib – HW), student who fails to comply with (1) will be given
Failure Attendance (Hadir Gagal – HG).
3. Student must follow and obey all the University dress rules and
regulations and must discipline themselves to avoid any
disciplinary action.
4. Student must obey safety regulations during the learning and
teaching process.

15 Prepared by: Verified by:

Name: Assoc. Prof. Dr. Mohd Name: Assoc. Prof. Dr. Azlina Md. Yassin
Lizam Bin Mohd Diah
Position: Head of Department
Position: Assoc. Professor
Date: 4 February 2018
Date: 4 February 2018

Edition: 1 Page 5 of 5
Published date: 1 January 2018