16335 Advanced Valuation

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2021 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 16331 Specialised Valuation AND 16236 Property Cash Flow Analysis

Description

This subject is concerned with the analysis of property investment transactions and the application of this analysis within the process of appraising non-residential investment property and leasehold interests. The subject also involves the application of time value of money theory within the capitalisation and discounted cash flow approaches.

Subject learning objectives (SLOs)

On successful completion of this subject, students should be able to:

1.	understand contemporary advanced techniques, limitations, and investment appraisal methods used by valuers
2.	apply and refine various methods for constructing capitalisation rates and analysing yields
3.	utilise advanced compound interest theory
4.	apply discounted cash flow theory
5.	analyse property market transactions.

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

Apply valuation theory and practice in the valuation of property for different purposes (P.1)
Analyse data to make investment decisions in various contexts (P.2)

Teaching and learning strategies

Lectures incorporating problem-solving and challenge testing through the use of written questions, synthesis, analysis, and response oriented scenarios.

Content (topics)

The following topic areas are covered:

Advanced commercial, industrial and retail valuation

Time value of money theory

Use and construction of dual rates

Leasehold interests

Discounted cash flow theory & application

Assessment

Assessment task 1: In class test

Objective(s):	This task addresses the following subject learning objectives: 1 and 2 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.1
Weight:	20%

Objective(s):

This task addresses the following subject learning objectives:

1 and 2

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1

Weight:

20%

Assessment task 2: In Class Test 2

Objective(s):	This task addresses the following subject learning objectives: 3, 4 and 5 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.1 and P.2
Weight:	30%

Objective(s):

This task addresses the following subject learning objectives:

3, 4 and 5

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1 and P.2

Weight:

30%

Assessment task 3: End of semester examination

Objective(s):	This task addresses the following subject learning objectives: 1, 2, 3, 4 and 5 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.1 and P.2
Weight:	50%

Objective(s):

This task addresses the following subject learning objectives:

1, 2, 3, 4 and 5

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1 and P.2

Weight:

50%

Recommended texts

There are a diversity of valuation and appraisal texts available through the UTS Library. Useful references will include:

Australian Property Institute Valuation Principles and Practice Second Edition, Australian Institute of Valuers and Land Economists, Deakin ACT, 2007

Appraisal Institute, The Appraisal of Real Estate, Twelfth Edition, Appraisal Institute, Chicago, 2001.

Australian Property Institute, Property Journals

Baum, A and Crosby, N Property Investment Appraisal, Second Edition, Routledge, London, 1995.

Knox, D and Zima, P. and Brown, R Mathematics of Finance Second Edition, McGraw-Hill Australia, 2006

Fischer, D, Income Property Analysis and Valuation, FP Media.

Robinson, J. Property Valuation and Investment Analysis: A Cash Flow Approach. The Law Book Company, 1989

Rost, R.O. & Collins, H.G. Land Valuation and Compensation in Australia, Australian Institute of Valuers and Land Economists, Deakin ACT, 1993

Scarrett, D, Property Valuation The 5 Methods, E & FN Spon, London, 1991 Whipple, R.T.M, Property Valuation and Analysis, Law Book Company, 1995.

References

IVSC. (2011). International Valuation Standards 2011. London: The International Valuation Standards Council.

Other resources

For a comprehensive online international glossary of valuation terminology (updated July 2012) please refer to the International Valuation Standards Council (IVCS) website http://www.ivsc.org/~ivscorg/glossary