Real Estate Process 3 s.h.
The typical households portfolio is dominated by real estate. Thus it is not surprising that the market for real estate debt dominates all other debt markets including the U.S. Treasury market. This course deals with application of financial economics theory to real estate. Real estate is broadly defined to include the real assets as well as the financial securities or claims derived from the real estate. The course is organized according to the various economic decision points that impinge on real estate, including investment, finance, organization forms, law, marketing and management. Topics include a review of fundamental concepts; nature of real estate; real estate process; financial solvency models; housing affordability; theory of real value; rent theory; urban structure and dynamics; economics of property rights; supply and demand analysis; location analysis; political economy of real estate; agency theory and brokerage markets; dealers and brokers; contractual arrangements; moral hazard problem; mortgage finance; mortgage markets; mortgage contracts; mortgage choice; mathematics of mortgage finance; mortgage pricing; secondary mortgage markets; derivative mortgage securities; real estate investment analysis; principles of real estate investment; ratio analysis; debt-equity valuation model; cashflow projections; federal tax effects; investment decisions; asset disposition decisions valuation of real estate; income property valuation; valuation of single family property; special purpose valuation.