The financial system- functions and actors; Financial instruments in the real estate credit market; Term structure of interest rates; short and long-term interest rates; Loans with fixed and floating rate; Net interest income; Deposit and lending margins; Loan types; Financing analysis of debt-financed purchase of residential property; Tax consequences of different funding options; Credit risks; Interest rate risks; Capital requirement, Financial market regulation; Houseprices and credit market; Real estate funds.
AI122U Real Estate Finance and Investments 7.5 credits
Course offerings are missing for current or upcoming semesters.
Headings with content from the Course syllabus AI122U (Autumn 2018–) are denoted with an asterisk ( )
Content and learning outcomes
Course contents
Intended learning outcomes
- Describe various real estate financing and investment vehicles, concerning both commercial and residential real estate.
- Describe the functions of the financial system and its actors and their roles.
- Analyze the economic consequences of different financing methods to purchase real estate.
- Explain different factors, and how these factors can determine the development of short and long market interest rates, and how changes in interest rates might affect the valuation of debt instruments.
- Describe commonly used financial instruments used for real estate financing and investment purposes.
- Identify and analyze different types of debt-related risks in the real estate market, and how the different risks can be handled.
- Interpret concepts and figures presented in banks’ and mortgage lending institutions’ financial reports.
Literature and preparations
Specific prerequisites
No information inserted
Recommended prerequisites
No information inserted
Equipment
No information inserted
Literature
Literature is informed at the beginning of the course
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
P, F
Examination
- INL1 - Project work, 1.5 credits, grading scale: P, F
- TEN1 - Written exam, 6.0 credits, grading scale: P, 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.
Opportunity to complete the requirements via supplementary examination
No information inserted
Opportunity to raise an approved grade via renewed examination
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Examiner
No information inserted
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 room in Canvas
Registered students find further information about the implementation of the course in the course room in Canvas. A link to the course room can be found under the tab Studies in the Personal menu at the start of the course.
Offered by
Main field of study
This course does not belong to any Main field of study.
Education cycle
First cycle
Add-on studies
No information inserted