AI1144 Fundamentals of Residential Real Estate Finance 7.5 credits
Choose semester and course offering
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Content and learning outcomes
Course contents
Real estate investments, the financial system, financial intermediaries, credit market instruments, short- and long-term interest rates, financial leverage, present value mathematics, mortgage markets, loans with fixed and variable rates, loan amortization schedules, interest rate margins, yield curves, financial analysis of debt-financed property investments, banking, capitalization rates, credit risk, interest rate risks, financial stability and financial regulations, financial crisis.
Intended learning outcomes
After passing the course, the student should be able to:
- describe basic concepts and situations in residential real estate finance,
- solve problems that arises in residential real estate finance.
Course disposition
Literature and preparations
Specific prerequisites
Completed course AI1128 Economics of the Built Environment or equivalent course and completed part INL1 (Submit assignment 3.0 credits) in AI1178 Applied Mathematics and Statistics for Economists.
Recommended prerequisites
Equipment
Literature
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- INL1 - Assignment, 3.5 credits, grading scale: P, F
- TEN1 - Examination, 4.0 credits, grading scale: A, B, C, D, E, FX, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Other requirements for final grade
Coursework 3,5 credits (INL1)
Written exam 4 credits (TEN1)
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.
Further information
Course web
Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.
Course web AI1144