MGT8072 Property Ownership Management
|Semester 2, 2012 On-campus Springfield|
|Faculty or Section :||Faculty of Business and Law|
|School or Department :||School of Management and Marketing|
|Version produced :||30 December 2013|
Examiner: Eric Too
Moderator: Barrie Todhunter
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.
Property ownership represents a significant component of the Australian economy, and the property industry employs a large proportion of the nation's workforce, directly or indirectly. Property ownership covers the public sector and the private sector, across many sectors including commercial, retail, industrial, residential, tourism, and government. The reasons and objectives for property ownership will vary widely and will influence the way in which property is acquired, funded, held and managed. Property ownership involves many other industries such as real estate agencies, property managers, construction and maintenance, legal practitioners, professional consultants, tenants, landlords, financial institutions, investors, stockbrokers, and an understanding of the potential role of these parties is critical to an understanding of property ownership.
The course examines the following: (1) an introduction to the concept of property ownership and investment, (2) an overview of property as an asset, (3) alternative investment strategies that are available, (4) measures of property investment performance, (5) the use and application of Cost Benefit Analysis in property economics, (6) the use and application of various forms of cash flow analysis for the property market, (7) the use and application of discounted cash flow analysis for long term investment in property assets, (8) the various options and sources available for funding of property ownership, (9) financial structures suitable for property ownership, (10) valuation of property as an asset, (11) the effects of taxation on property ownership and investment, and (12) management of risk in property ownership. The course is structured to provide a broad overview of the financial and economic implications of property ownership and asset management, and is not designed to provide a high level of economic skills. The course does not require any prior study of economics, but does require students to develop basic spreadsheet skills in carrying out financial cash flow analyses. Formerly FIN8072 Property Ownership.
On completion of this course students will be able to:
- identify and explain the various classes of property ownership and the issues associated with each class
- identify and explain the issues associated with each class of property as an investment asset
- select, document and justify a suitable investment strategy for each class of property ownership
- select, document and justify a suitable measure for property performance for a small- to medium-sized property portfolio
- identify and justify a suitable cost benefit analysis for the various classes of property assets
- carry out a simple cash flow analysis for a property investment using traditional (non-discounted) methods of analysis for a small- to medium-sized property investment
- carry out a suitable discounted cash flow analysis for a small- to medium-sized property investment
- select, explain and justify a suitable source and mechanism for funding of each class of property assets
- select, explain and justify a suitable financial structure for each class of property assets
- identify, explain and justify the options for carrying out a valuation for various classes of property assets, and prepare a valuation of a small- to medium-sized property asset
- identify, explain and calculate the possible effects of taxation on various classes of property ownership
- select, justify and carry out an appropriate risk analysis of various classes of property assets
- prepare a strategy for acquisition or disposal of property assets
- prepare a management strategy for property assets
- prepare a letting or leasing strategy for investment properties
- prepare a maintenance plan for property assets
- demonstrate satisfactory skills in communication and numeracy.
|1.||Property ownership as an investment strategy||10.00|
|2.||Property investment analysis||10.00|
|3.||Property risk management and cash flow analysis||10.00|
|4.||Property investment performance analysis - discounted cash flows||10.00|
|5.||Funding, leverage and financial structure||10.00|
|6.||Taxation and property ownership||10.00|
|7.||Property acquisition and disposal||10.00|
|9.||Landlord and tenant relationships||10.00|
|10.||Maintenance, repairs and risk management||10.00|
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (https://bookshop.usq.edu.au/bookweb/subject.cgi?year=2012&sem=02&subject1=MGT8072)
Please contact us for alternative purchase options from USQ Bookshop. (https://bookshop.usq.edu.au/contact/)
Airey, GJ 2003, The property investor's handbook, 3rd edn, Wrightbooks, Milton, Queensland.
Rowland, PJ 2010, Australian property investment and financing, Law Book Company, North Ryde, New South Wales.
Summers, J & Smith, B 2010, Communication skills handbook, 3rd edn, John Wiley & Sons, Milton, Queensland.
Wilkinson, S & Reed, R 2008, Property development, 5th edn, Routledge, London.
Student workload requirements
|Tutorials or Workshops in Block Intensive Mode||42.00|
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|ASSIGNMENT 1||100||5||01 Aug 2012||(see note 1)|
|ASSIGNMENT 2||100||30||10 Sep 2012||(see note 2)|
|ASSIGNMENT 3||100||65||22 Oct 2012|
- Assignment 1 requires students to select an appropriate project for analysis and is a small case study report. Students are encouraged to complete the activity to ensure they understand the nature of the studies in the course and the scope of assignments 2 and 3.
- Assignments 2 and 3 are project-based case studies requiring students to obtain sufficient information on a project of their choice to carry out a critical analysis of an aspect of that project related to key topics covered by this course. Students should choose a project as early as possible after reading the requirements of assignments 2 and 3. The same project can be used for assignments 2 and 3.
Important assessment information
It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. Courses delivered at Springfield campus are run in block intensive mode as two 3-day workshops during the semester, and NOT as weekly lectures. Teaching blocks will include weekdays and weekend days. Check timetables for workshop dates at http://www.usq.edu.au/springfield/timetable.
Requirements for students to complete each assessment item satisfactorily:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.)
Penalties for late submission of required work:
If students submit assignments after the due date without prior approval of the examiner, then a penalty of 5% of the total marks gained by the student for the assignment may apply for each working day late up to ten working days at which time a mark of zero may be recorded.
Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the weighted aggregate of the marks obtained for each of the summative assessment items in the course.
There is no examination in this course.
Examination period when Deferred/Supplementary examinations will be held:
University Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene University policies and practices. These policies can be found at http://policy.usq.edu.au.
1. Assignments: (i) Assignments must be submitted electronically by 11.59pm (AEST) on the due date through the USQ Electronic Assignment Submission Environment (EASE). (ii) Students must retain a copy of each assignment submitted for assessment. This must be produced within 24 hours if required by the examiner. (iii) The examiner may grant an extension of the due date of an assignment in extenuating circumstances. If the required extension is less than seven days, there is no need to obtain prior approval. In such cases, submit your assignment as soon as possible after the due date together with any supporting documentation that might be required. The authority for granting extensions rests with the relevant examiner. (iv) The examiner will normally only accept assessments that have been prepared using electronic media. (v) The examiner will not accept submission of assignments by facsimile. (vi) Students who are disadvantaged by these regulations may be given special consideration. They should contact the examiner to negotiate such special arrangements. (vii) In the event that a due date for an assignment falls on a local public holiday in their area, such as a show holiday, the due date for the assignment will be the next day. Students are to note on the assignment cover the date of the public holiday for the examiner's convenience. (viii) Note that assignments may have to be accompanied by a ‘Turnitin’ Originality Report which the student has to download from the Turnitin website at www.turnitin.com after submitting their assignment to the Turnitin database online. Details will be provided with the assignment requirements. Failure to attach the Originality Report may result in loss of marks.
Referencing in assignments: Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at http://www.usq.edu.au/library/referencing.
Course weightings: Course weightings of topics should not be interpreted as applying to the number of marks allocated to assessment.
Deferred work: Students who, for medical, family/personal, or employment-related reasons, are unable to complete an assignment may apply to defer an assessment in a course. Such a request must be accompanied by appropriate supporting documentation. A temporary grade of IDM (Incomplete Deferred Make-up) may be awarded.
Make-up work: Students who have undertaken all of the required assessments in a course but who have failed to meet some of the specified objectives of a course within the normally prescribed time may be awarded the temporary grade: IM (Incomplete - Make up). An IM grade will only be awarded when, in the opinion of the examiner, a student will be able to achieve the remaining objectives of the course after a period of non directed personal study.
Computer, e-mail and Internet access: Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.