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