WHAT'S NEW?

FINANCIAL MARKET COURSES

Real Estate – Valuation

Real estate is generally considered to be an “alternative asset," complementary in a portfolio context given its low correlation with the stock, bond and money markets. Fund managers need to determine how much real estate to add to a portfolio and at what price. Here we learn about how investors can value real estate.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Describe the different price determining factors of real estate

    Understand the methods used to value real estate

    Discuss how property values can be compared

    Describe the means by which real estate investment trusts (REITs) are valued

  • COURSE OUTLINE

    Topic 1: Basics of Real Estate Valuation

    Features of Real Estate Valuation

    Determinants of Property Value

    o Demand

    o Supply

    o The Property Itself

    o Property Transfer Process

    Topic 2: Valuation of Individual Properties

    Valuation Indicators

    Transaction Prices vs. Market Valuation

    Methods of Valuation

    o Replacement Cost Approach

    o Direct Sales Comparison Approach

    o Income Approach

    Topic 3: Relative Valuation Measures

    Valuation Measures

    House Price to Net Rental Ratio

    Yield

    House Price to Income (or Earnings) Ratio

    Other Ratios

    Topic 4: Valuation of Real Estate Investment Trusts (REITs)

    Types of REIT

    Valuing REITs

    o Net Asset Value (NAV)

    o Funds from Operations (FFO)

    Key Elements of FFO Measure

    Drawbacks of the FFO Measure

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Previous Course

VIEW COURSE

INTRODUCTORY

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.