bsc. real estate finance and investment [ardhi university-tanzania]
DESCRIPTION
Course overviewTRANSCRIPT
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Company Proprietary and Confidential
REFI Programme in a Nutshell
Noah AmriJune,6 2014
SRES PROFESSIONAL DAY
B.Sc. REAL ESTATE FINANCE AND INVESTMENT(B.Sc. REFI)
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Company Proprietary and Confidential
REAL ESTATE BUSINESS
o To most of us - both as individuals or a corporates owning of real estate either through construction or purchase, represents the biggest expenditure we would ever make.
o These construction activities and purchase transactions happen every day at some point and place involving the transfer of really huge amounts of funds.
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Company Proprietary and Confidential
o Hence real estate is a business of its own kind, involving investment of large capital outlays for either purchase or construction of properties.
o The business does not only require different financing mechanisms but also critical analysis of technical, economical, legal and environmental viability and perfomance of the investments.
o As the case, investment in real estate should always be viewed from an
investment perspective of analysing risk and return profiles of the respective investment projects.
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Company Proprietary and Confidential
o The changing socio-economic and political climate of the country has definitely contributed much towards a new thinking on the part of the government and all stakeholders, that investng in real estate must be taken seriously. On the wake of these developments tracer studies showed a gap in experts in some areas of real estate discipline. This culminated into the establishment of more real estate degree programmes at Ardhi Universitry, on top of traditional programmes, B.Sc. REFI is one the new programmes
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Company Proprietary and Confidential
o Carrying out of real estate investments needs specialised skills due to the distinct nature of this asset class as opposed to other investment vehicles such as shares and bonds, and these skills are comprehensively acquired in B.Sc. Real Estate finance and Investment.
o The degree programme produces highly qualified graduates with extensive knowledge on the field of real estate investments; its legal and technical issues plus financing options, on both international and national real estate markets.
o The programme started in 2007, being a four year programme of which its first graduates entered the industry in 2010. Graduates being thouroughly equiped with industrial based tools and skills have since then proved to be the best in the industry as reported by many employers.
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Company Proprietary and Confidential
SOME FUNCTIONS OF REAL ESTATE INVESTMENT ANALYSTS
Bsc.REFI
Project feasibility
and Appraisal
Real estate
financing options
Real estate marketing
and agency
Appraising the
performance of
investments
Legal issues on Real estate
investments
Investment project
planning and
management
Management of the Inv.
property, tenants and
lease agreements
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Company Proprietary and Confidential
RANGE OF REFI EMPLOYERS
REFI EMPLOYERS
Pension funds
Insurance companies
Private equity firms
Commercial Banks
Real Estate development companies
Architectural and
Construction companies
Accounting and Finance management
Firms
Investment departments
in Government
ministries
Mortgage Bankers and
broker
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Company Proprietary and Confidential
“B.Sc. REFI IS SPECIAL AND UNIQUE”
oThis is the unique degree programme and almost the only one offered in Africa -integrating real estate issues with finance on an investment perspective
oThe programme is a master’s programme like in nature since most of it is often studied at a masters level. Hence graduates being grounded for four years acquire extensive knowledge on real estate investing and finance
oA financial consultant can give the same advice to many investors to invest in shares of the same company but not same advice could be given to developers due to heterogeneity of real estate investments
oChallenging legal aspects and issues of real estate investment call for professionals with deep knowledge of real estate laws, zoning regulations and building codes.
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Company Proprietary and Confidential
oThe best people to practice mortgage(loan) underwitting in banks today are REFI graduates due to their deep understanding on real estate financing.
oOpen to both domestic and international employment opportunities REFI graduates are posed to take advantage of the current East African Community integration.
oThe course is recognized by many professional bodies including RICS, TIVEA and AfRES which offers more professional opportunities.
oReal estate is booming in Tanzania and in East Africa in general. The mortgage industry in Tanzania is also catching very fast.
oThe government is in the process of enacting a law to cater for real estate agents which among other things will require that every real estate brokerage firm to have a professional real estate agent.
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Company Proprietary and Confidential
SOME AREAS IN WHICH OUR GRADUATES HAVE PROVED TO BE QUITE USEFUL
Inve
stm
en
t Au
tho
ritie
s e
.g
EP
ZA
, T
ICAppraisal of investment sites and land banking
Selection of Investors
Evaluation of Investment proposals
Appraising the performance of
Investments
Marketing of Investment areas
Gov
ernm
ent
Min
istr
ies/
Age
ncy
Project planning and Investment decisions
Project management
Infrastructure financing decisions
Housing finance decisions
Land disputes with income properties
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Company Proprietary and Confidential
Pro
pert
y In
vest
men
t/Man
agem
ent
Firm
s
Property development and maintenance
advises
Real estate finance and investment decisions
Undertaking feasibility studies and project
appraisal
Real estate market analysis
Managing properties, tenants and lease
agreements
Evaluation of performance of real estate investments
Insu
ranc
e C
ompa
nies
, Pen
sion
fund
s co
mm
erci
al b
anks
and
Mut
ual b
anks
Advice provision for fund’s/company’s financial
planning
Risk analysis in different types of investment decisions making
Advice on financing real estate investments
Feasibility studies and project appraisals
Real estate marketing and agency
Loan underwriting: determining loan amounts, borrowers
creditworthiness and income potential of projects
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Company Proprietary and Confidential
THANK YOU FOR LISTENING
“REFI THE GEMSTONE FOR QUALITY PROPERTY INVESTMENT”
Prepared by:
Noah Amri – 4048/T.2011+255 716 828 150