Table of Contents

BUSI 121 - Foundations of Real Estate Mathematics

Real Estate Division. 2017. Foundations of Real Estate Mathematics. Vancouver, BC: UBC Real Estate Division.

• Chapter 1: The Basis of Financial Analysis
  Mathematics of Finance: Time Value of Money
  Math Formulas and Financial Calculators
  Financial Analysis of Real Estate: Asset Rental
  Simple and Compound Interest
  Compound Interest Calculations
  Future Value and Present Value of Lump Sums
  Other Lump Sum Calculations: Interest Rate and Holding Period
  Summary
  Appendix 1.1: Financial Algebra and Exponents
  Appendix 1.2: Six Functions of a Dollar
  
  
• Chapter 2: Equivalent Interest Rates
  The Importance of Compounding Frequency
  Framework for Interest Rate Conversions
  Interest Rate Conversions Using Mathematical Formulas
  Interest Rate Conversions Using Financial Functions
  Interest Rate Conversions in Practice: Interest Adjustments
  Appendix 2.1: Calculator Steps for Examples
  
  
• Chapter 3: Present Value Analysis
  Irregular Patterns of Costs and Benefits
  Present Value of Irregular Cash Flows
  Regular Payments and Irregular Intervals
  Present Value of Regular Cash Flows
  Mathematics of Annuities
  Types of Annuities
  Annuities Due
  Perpetual Annuities
  Present Value of Perpetual Annuities Due
  Deferred Annuities
  Summary
  Appendix 3.1: Calculator Steps for Examples
  Appendix 3.2: Proof for Present Value of an Annuity Relationship
  Appendix 3.3: Verification of Alternative Methods for Annuity Due
  Appendix 3.4: Proof of a Perpetual Annuity Formula
  Appendix 3.5: Proof of Perpetual Annuities Due
  
  
• Chapter 4: Future Value Analysis
  Future Values of Irregular Cash Flows
  Future Value of Regular Cash Flows
  Sinking Funds
  Future Value Analysis and Ordinary General Annuities
  Future Values and Deferred Annuities
  Summary
  Appendix 4.1: Calculator Steps for Examples
  Appendix 4.2: Proof for Future Value of an Annuity Relationship
  Appendix 4.3: Interest Only Loans
  
  
• Chapter 5: Mortgage Loan Analysis
  Features of Constant Payment Mortgages
  The Standard Canadian Mortgage Loan
  Calculation of Mortgage Loan Amount (Present Value)
  Calculation of Payments to Amortize a Loan
  Calculation of Interest Rates
  Calculation of Amortization Periods
  Calculation of Outstanding Balance
  Calculation of Principal and Interest Components of Payments
  Calculation of Final Payments on Fully Amortized Loans
  Innovative Options for Constant Payment Mortgages
  Summary
  Appendix 5.1: Calculator Steps for Examples
  
  
• Chapter 6: Mortgage Finance Applications: Vendor Financing and Assumable Loans
  Impact of Financing on Real Estate Transactions
  Vendor-Supplied (Take-Back) Mortgage
  Mortgage Assumption
  Summary
  Appendix 6.1: Calculator Steps for Examples
  Appendix 6.2: Calculator Steps for Illustration 6.6
  
  
• Chapter 7: Mortgage Finance Applications: Cost of Borrowing and Investment Yields
  Impact of Brokerage and Other Fees
  Yield to the Lender
  Investment Yield
  Summary
  Appendix 7.1: Calculator Steps for Examples
  
  
• Chapter 8: Real Estate Investment Analysis
  Introduction to Investment Analysis
  Time Value of Money
  Present Value of Irregular Cash Flows
  Net Present Value (NPV)
  Present Value Ratios
  Profitability Index
  Internal Rate of Return (IRR)
  Reinvestment Assumptions and Investment Measures
  Comparison of Investment Alternatives
  Summary
  Appendix 8.1: Calculator Steps for Examples
  
  
• Chapter 9: Mathematics of Graphing and Surveying
  Introduction to Graphing and Surveying
  Part One: Graphing
  Part Two: Surveyor’s Mathematics
  Summary
  Appendix 9.1: Examples of Living Area and Calculations
  
  
• Chapter 10: Foundations of Statistics
  What is Statistics?
  Working with Data
  Simple Data Description: Absolute and Relative Frequencies
  Pictorial Data Description
  Simple Descriptive Statistics
  Summary
  Appendix 10.1: Calculator Steps for Examples
  
  
• Chapter 11: Exploring Statistical Relationships
  Scatter Plots
  Crosstabulation Analysis
  Linear Correlation Coefficients
  Simple Linear Regression Analysis
  Summary
  Appendix 11.1: Calculator Steps for Examples
  
  
• Chapter 12: Multiple Regression and Real Estate
  Multivariate Regression Analysis
  Evaluating Multiple Regression Results
  Multiple Regression Analysis and Mass Appraisal
  Summary
  Appendix 12.1: Calculator Steps for Illustration
  
  
• Chapter 13: Further Topics in Statistics: Sampling and Time Series Analysis
  Part 1: Sampling Theory
  Sampling Methods
  Sample Bias
  Statistical Reliability
  Part 2: Analysis of Time Series Data
  Components of Time Series Data
  Techniques to Determine the Components of Time Series Data
  Moving Averages
  Index Numbers
  Summary
  Appendix 13.1: Calculator Steps for Examples
  
  
• Index