AP 331 - Real Estate Investment Analysis and Advanced Income Appraisal

3 Credits
Outline Effective Date: 2022 Fall Version #3
Revised: Mar 2, 2022
Approved: Jul 2, 2022

Course Description:
Valuation techniques for real estate are examined, including the income method of appraisal, tax consequences of real property ownership, and portfolio analysis methodology.

Rationale:
This is a required course for the Real Estate Appraisal and Assessment program. It is an essential course for any student planning to pursue a career in the field of property tax assessment or real estate appraisal.

Prerequisites: AC 130, MA 101
Corequisites: None

Course Learning Outcomes:
Upon successful completion of this course, students will be able to

define and describe real estate, real estate assets, real estate investments, and real estate markets.
prepare various financial statements and utilize financial ratios to compare real estate investment opportunities.
define and describe the various forms of leases and the major terms relating to lease agreements.
calculate and analyze lease valuations, from an appraisal perspective.
apply various taxation concepts, such as income tax, GST, CCA, and capital gains, to real estate investment valuation models.
apply various single and multiple period return measurements, including ROI, NPV, and IRR, to real estate investments.
apply various valuation techniques to real estate properties, including the income method, the mortgage-equity method, and the residual valuation technique.
identify and measure the major sources of risk in real estate investments, and incorporate them in valuation models.
define the various real estate ownership structures and describe their main characteristics.
apply portfolio theory to real estate investment valuation.

Required Resource Materials:
Required Text(s):

UBC Real Estate Division. (2019). Real estate investment analysis and advanced income

appraisal course manual. Real Estate Division, Sauder School of Business, University of

British Columbia.

UBC Real Estate Division. (2019). Real estate investment analysis and advanced income

appraisal course workbook (BUSI 331). Real Estate Division, Sauder School of Business,

University of British Columbia.

Reference Text(s):

TBA

Optional Resource Materials:
None

Conduct of Course:

Since AP331 is course BUSI-331 in the diploma program in Urban Land Economics at the University of British Columbia, contents of the course workbook are followed.

AP331 is one of the five courses required in the certificate program in Real Property Assessment at the University of British Columbia Real Estate Division.

AP331 is primarily a lecture course with chapter assignments and two projects that apply chapter material to reinforce concepts presented.

Classroom participation concerning class material is expected and is beneficial to all students. Practice classroom courtesy so that class discussion periods can be conducted in an orderly fashion. If you must enter the classroom after class has begun, please do so as quietly as possible. If you have a disagreement with the instructor on a particular graded exercise or exam question, please see the instructor after class or during office hours.

Studying for the course: it is critical that each student read the assigned material for each class and keep up to date with all lectures and assigned problems.

Student counseling: students who are experiencing difficulty with the course should immediately consult the instructor during office hours or by appointment.

Course withdrawal: students should familiarize themselves with the school’s course withdrawal policy and procedures that are explained in the student handbook/calendar. It is important to note that students who simply discontinue attending class without officially withdrawing from the course receives a grade based upon the total points they have accumulated. Ordinarily, the result is a failing grade.

Canceled classes: on occasion classes may be canceled due to inclement weather, instructor illness, or for some other reason. These classes are rescheduled if possible. Please check and carefully read the cancellation notices posted on classroom doorways (i.e. date, time and course).

Cheating: any student observed plagiarizing materials or cheating on written assignments/projects, chapter quizzes or the final exam are dealt with according to the procedure stipulated in the student handbook/calendar.

Attendance

Regular attendance is essential for success in any course. Absence for any reason does not relieve a student of the responsibility of completing course work and assignments to the satisfaction of the instructor. Poor attendance may result in the termination of a student from a course(s).

If you do not meet the established attendance requirements, your instructor will recommend that the Registrar withdraw you from the course. A failing grade of RW (Required to Withdraw) will appear on your transcript.

In cases of repeated absences due to illness, the student may be requested to submit a medical certificate.

Instructors have the authority to require attendance at classes.

Content of Course:
Chapter 1: Overview of Real Estate Assets and Markets

Chapter 2: Analysis of Income and Expenses

Chapter 3: Introduction to Leasing

Chapter 4: Lease Analysis

Chapter 5: Taxation of Real Estate Investments

Chapter 6: Return Measurement

Chapter 7: Income Method of Valuation

Chapter 8: Mortgage Equity and Residual Valuation Techniques

Chapter 9: Risk Determination, Measurement, and Analysis

Chapter 10: Real Estate Ownership Structures

Chapter 11: Real Estate Investments - Portfolio Analysis and Management
Course Assessments:
The final grade is an aggregate of the following components:

Multiple Choice Assignments		15%
Projects/Written Assignments	No. 1	10%
	No. 2	25%
Examination Final		50%
Total		100%

Any changes to the evaluation process are discussed during the first class.

Official final grades will be available on My Lakeland. Grades posted in D2L should be considered interim grades.
“Lakeland College is committed to the highest academic standards. Students are expected to be familiar with Lakeland College policies and to abide by these policies. Violations of these policies are considered to be serious and may result in suspension or expulsion from the College.”

Course Pass Requirements:
A minimum grade of D (50%) (1.00) is required to pass this course.

Letter	F	D	D+	C-	C	C+	B-	B	B+	A-	A	A+
Percent Range	0-49	50-52	53-56	57-59	60-64	65-69	70-74	75-79	80-84	85-89	90-94	95-100
Points	0.00	1.00	1.30	1.70	2.00	2.30	2.70	3.00	3.30	3.70	4.00	4.00

Students must maintain a cumulative grade of C (GPA - Grade Point Average of 2.00) in order to qualify to graduate.

Every effort has been made to ensure that information in this course outline is accurate at the time of publication. Lakeland College reserves the right to change courses if it becomes necessary so that course content remains relevant.

In such cases, the instructor will give students clear and timely notice of changes.

No part of this course outline may be reproduced in any form or resold without written permission from Lakeland College.

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