Course detail

Investing and Finance in Real Estate

ÚSI-ERIFNAcad. year: 2024/2025

Investments and their attributes, cash flow, present and future value, methods for evaluation of investment efficiency, estimations of CF development and risk, portfolio and its principles, typical CF development for real estate and financial modeling, mortgage markets and investment funds.

Language of instruction

Czech

Number of ECTS credits

4

Mode of study

Not applicable.

Guarantor

doc. Ing. et Ing. Martin Cupal, Ph.D. et Ph.D.

Department

Institute of Forensic Engineering (ÚSI)

Entry knowledge

Mathematics

Rules for evaluation and completion of the course

Conditions of course-unit credit: participation in seminars, compliance of set tasks.
Exam will comprise written and oral part and will be classified according to performance level in both parts.

Attendance is checked in attendance sheet.

Aims

Basic understanding of investing in real estates and the ability of unassisted evaluation of investment efficiency.
Knowledge of typical cash flow of real estate, specifics of real estate, ability to work with the main determinants of investment and evaluate investment efficiency, fundamentals of real estate portfolios.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

FOTR, J., SOUČEK, I. Investiční rozhodování a řízení projektů. Praha: GRADA, 2011. ISBN 978-80-247-3293-0.
STAIGER, R. Foundations of real estate financial modelling. New York: Routledge, 2015. ISBN 978-1-138-02516-5.
VALACH, J. a kol. Investiční rozhodování a dlouhodobé financování. Praha: EKOPRESS, 2010. ISBN 978-80-86929-71-2.

Recommended reading

BAUM, A. E., CROSBY, N. Property investment appraisal. London: Wiley-Blackwell, 2007. ISBN 978-14-05135-55-9.
BRUEGGEMAN, W. B., FISHER, J. D. Real Estate Finance & Investments. New York: McGraw-Hill Education, 2015. ISBN 978-0073377353.
SCHNEIDEROVÁ HERALOVÁ, R. Udržitelné pořizování staveb (ekonomické aspekty). Praha: Wolters Kluwer, 2011. ISBN 978-80-7357-642-4.

Classification of course in study plans

  • Programme REI_P Master's 1 year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

doc. Ing. et Ing. Martin Cupal, Ph.D. et Ph.D.

Syllabus

1. Planning of investment activity - importance of investment activity, stages of preparation.
2. Present value of investment, discounting, special cases.
3. Methods for evaluation of economic efficiency of investment projects (NPV, PI).
4. Methods for evaluation of economic efficiency of investment projects (IRR, PB).
5. Fundamentals of portfolio theory: return and risk.
6. Fundamentals of portfolio theory: effective set and optimal portfolio.
7. Cash flow plan of real estate investment project and its specifics.
8. Typical development of cash flow in real estate, financial modeling.
9. Risks in real estate and returns under risk, trend analysis.
10. Valuation of real estate for investment purposes, Investment Value.
11. Property management, facility management.
12. Comprehensive case study of investment decision-making in real estate.
13. Forms of real estate financing, mortgage markets, investment funds, REITs.

Exercise

13 hod., compulsory

Teacher / Lecturer

doc. Ing. et Ing. Martin Cupal, Ph.D. et Ph.D.