Tuesday, April 30, 2019

Can the drivers of property investment deliver value in a global Literature review

Can the drivers of property investment deliver value in a global economic downturn - Literature review ExampleThe risk was so big because the analyse of the housing bubble in the USA affected not only the valuations of al-Qaidas, but also some(prenominal) other agencies, industries, and personnel that included but were not limited to the mortgage markets, real estate, foreign banks, home builders, and home supply retail outlets. The Case-Shiller home price index noted the largest ever drop in the prices of houses by the end of the year 2008. It was because of the anticipated risks imposed by the bursting housing bubble that President George W. scrubbing announced the housing markets bailout for those homeowners who could not compensate for their mortgage debts. Economic recession and coarse foreclosures of housing caused by the global monetary crisis was a potential threat to the investors. When a financial crisis hits a countrys economy, it affects the value of property invest ment just like it affects all other industries, though thither is variation between the value delivered by property investment and other business options in such times. The real estate business has conventionally remained the best investment of all time, including the time of financial crisis. Knowledge of the potential drivers of the business of property investment provides the investors with a way to transform the risks into opportunities. Population appendage during Financial Crisis and Its Impact on Property Investment One of the most fundamental drivers of property prices is existence change. People want to dwell in popular areas. Prices of popular areas are higher than the rest because there are more interest parties than the number of dwellings available. Prices of an area go down when the dwellings outnumber the interested parties. jibe to the Australian Bureau of Statistics (ABS) that conducts a census every five years to publish the trends of existence growth, trends o f population growth do not rise abrupt changes. While the indigenous population does not show rapid changes in growth, there are other factors that contribute to the growth of population, the most important among them organism the immigration account of a country. Things that do change population growth rapidly - and provide investors with opportunity - are changes in immigration quotas, changes in infrastructure making areas more or less piquant and accessible to live in, and changes to employment such as the booming resources industry (Moore, 2012). During the financial crisis, there has been a decline in the aim of immigration despite the increased tendency among the governments to increase the immigration rate since every immigrant that is allowed hostage contributes to the growth of the host countrys economy. Although immigration rate is generally sensed to curb negative effects on the employability of the indigenous population of a country, yet several studies have foun d that the long term effects of immigration are opposite of what they are generally sensed to be immigrants increase the productivity as well as the average income (Peri, 2010b, p. 7). Immigration rate is advantageously linked with the employment rate. Fig. 1 and Fig. 2 show how the rate of immigration is affected by the rate of employment in a country. Fig. 1 interpretation in Immigration rate from 1995 to 2010 (Peri, 2010a, p. 3). Fig. 2 Variation in employment rate from 1995 to

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