Business 33-451:
Introduction to Real Estate
Economics and Finance (Spring
2005)
Erik Hurst
SYLLABUS
Note: Due to Graduation: Final will be held during week 10
of classes.
Rent vs Own Excel Worksheet
Caveats to the Rent vs Own Worksheet
Problems at Freddie Mac and
Fannie Mae: Too Big to Fail
End
of Class Notes (My forecast for U.S. Economy and 2004-2005 Real Estate
Prices)
2004 Commercial
Real Estate Forecast
*********** Some Extra
Handouts/Readings *************
Link To Erik's Macro Class: Winter 2005
*** Read for Week
2: Real/Nominal
Discussion ****
Some Notes on Variable Rate Mortgages: Federal Reserve Brochure
Extra Reading I: Some Thoughts on Speculative
Bubbles
Data List - Where to Get Real Estate Data
Applying the Microsoft Decision to Fannie Mae and Freddie Mac
Congressional Budget Office - Interest Rate Differentials
Between Jumbo and Conforming Mortgages
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| Week | Topic | How is your grade
affected during each week? |
Lecture
Notes: Download Prior to Class |
Readings
and/or Problems to consider |
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Week 2 (first 1/2) |
Are real estate markets efficient? (continued into week 2) |
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Power Point PDF_2 PDF_6 |
Read: Text: None Other: Notes on Real/Nominal Discussion (linked on web site above) No suggested problems This lecture is based mostly on my lecture notes |
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Week 2 (second 1/2) |
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Answers |
Power Point PDF 2 PDF 6 Practice Problem for Quiz 1 |
Read: Text: Chapters 9 and 10 Suggested Problem: Chapter 9 (Problems): 1 and 2 Answers Chapter 9 Chapter 10 (Problems): 1, 4, 6 and 9 Answers Chapter 10 |
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Week 3/ Week 4 (beginning) |
3. Real Options: Applications to Real Estate Decisions AND 4. Understanding Mortgage Rates and Pricing Default Risk |
Answers |
Topic 3 Power Point Topic 4 Power Point |
Read: Nothing: Erik's Lecture Notes Suggested Problem: No Suggested Problems |
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Week 5 |
5. Mortgage Pricing: Fixed and Variable Rate Mortgages |
Answers |
Topic 5 Power Point |
Read: Text: Chapters 4 and 5 Suggested Problems: Chapter 4 2, 3, 4 and 19 Answer Chapter 4 Chapter 5 2, 3, and 6 Answers Chapter 5 |
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Week 6 (almost all class) |
6. Incremental Borrowing Costs, Optimal Refinancing, and the Rent vs. Buy Decision |
Answers Quiz 5 Answers |
Power Point |
Read: Text Chapters 6, 7, and 8 Suggested Problems: Chapter 6 1, 3 , 5 and 7 Answers Chapter 6 Chapter 7 1 and 2 Answers Chapter 7 Chapter 8 1 Answers Chapter 8 |
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Week 7 |
7. Secondary Mortgage Markets |
Quiz 6 Answers |
Power Point NOTE: Homework from chapter 19 and 20 are due at the beginning of week 9! Read: Homework Guidelines |
Read: Chapters 19 and 20 Problems To Be Handed In (beginning of week 9): Chapter 19 1 and 2 Answers Chapter 19 Chapter 20 1 (a-f) Answers Chapter 20 |
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8. Optimal Leverage, Firm Lease vs. Own Decisions |
Quiz 7 Answers |
Topic 8 Power Point Topic 8a (a supplement to topic 8) Power Point |
Read: Chapters 11, 12, 13 and 15 (Chapters 14 (optional)) Suggested Problems: Chapter 11 2 Answers Chapter 11 Chapter 12 1 and 4 Answers Chapter 12 Chapter 13 3 Answers Chapter 13 Answers Chapter 14 Chapter 15 1 and 2 Answers Chapter 15 |
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Week 9 |
9. Real Estate Investment Trusts 10. Chicago Market Report/ Forecasts/ Final Thoughts |
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Topic 9 Power Point Topic 10 Chicago Market Report Power Point |
Read Chapters 21 and 22 No Suggested Problems
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Final (Note: Final is going to occur during week 10) |
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2004 Quiz File |
Answers |