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Journal ArticleDOI

A GIS based system for minimizing acquisition risk in Real Estate property market

01 Jan 2012-Aestimum (Firenze University Press)-pp 333-345
TL;DR: In this article, the authors proposed a new approach to evaluate property acquisition's risk that does not rely on a standardize appraisal indices analysis, and the proposed Geographical Information System is able to investigate the historical variation of the main real estate market indicators and to let the final user appraise the general level of real estate investment risk.
Abstract: Many economists have identified the main cause of recent global real estate market crisis both in the poor diffusion of systems capable of monitoring the historical property values that in the lack of public awareness about the risks of real estate investments. This paper proposes a new approach to evaluate property acquisition’s risk that does not rely on a standardize appraisal indices analysis. The proposed Geographical Information System is able to investigate the historical variation of the main real estate market indicators and to let the final user appraise the general level of real estate investment risk. The subsequent sections of this paper will discuss about the real strength of the most common literature’s algorithms used to appraise risk in real estate, then it will be explained how inexpensive information technology applications can help to increase the diffusion of awareness related to real estate market conditions. Finally it will be discussed the case of study; conclusions and some considerations about future improvements will close the study.
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Journal ArticleDOI
TL;DR: In this paper, a distinction between the concepts of purchase affordability (whether a household is able to borrow enough funds to purchase a house) and repayment affordability (the burden imposed on a household of repaying the mortgage) is made, and a new methodology for constructing affordability measures that draws on the value-at-risk concept and takes account of the whole distribution of household income and house prices rather than just the median is presented.

190 citations

24 Sep 2012

159 citations

Journal ArticleDOI
TL;DR: In this article, the authors present an analysis of household survey data to measure the affordability of home-ownership, focusing on the distribution of incomes and wealth and the range of house prices.
Abstract: Typical measures of the affordability of home-ownership are based on aggregate data that ignore the distribution of incomes and wealth and the range of house prices. An analysis of household survey...

95 citations


"A GIS based system for minimizing a..." refers background in this paper

  • ...…period characterized by fast and unexpected changes in economic cycles of a nation, it is obviously more correct to give the right attention to the potential presence of housing market speculative bubble rather than analyze just the qualitative aspects of a specific property (Bourassa, 1996)....

    [...]

  • ...But, as we can see, in a historical period characterized by fast and unexpected changes in economic cycles of a nation, it is obviously more correct to give the right attention to the potential presence of housing market speculative bubble rather than analyze just the qualitative aspects of a specific property (Bourassa, 1996)....

    [...]

Journal ArticleDOI
TL;DR: The authors found that a country's real estate security excess (risk-adjusted) returns are negatively related to its economic openness, and suggest that real property market efficiency may have been enhanced for non-tradable goods such as real estate in globalizing economies.
Abstract: Have globalization and increasing economic and financial integration affected the rates of return of publicly traded real estate companies around the world? Using a set of multi-factor models for annual data for 946 firms from 16 countries over the sample period, 1995-2002, we estimate the impact of a country's economic openness on returns of publicly traded real estate firms, controlling for the effects of global capital markets, domestic macro-economic, and firm-specific variables. We find that a country's real estate security excess (risk-adjusted) returns are negatively related to its openness. The results are robust across different multi-factor model specifications, and suggest that real property market efficiency may have been enhanced for non-tradable goods such as real estate in globalizing economies.

71 citations


"A GIS based system for minimizing a..." refers background in this paper

  • ...…economists have identified the main cause of recent global real estate market crisis in the poor diffusion of systems capable of monitoring the historical property values and in the scarce public awareness about the risks of real estate investments crisis (R. Bardhan, 2008 – R.J. Shiller, 2008)....

    [...]

  • ...Indeed, the housing market financial crisis has affected other debt market like credit cards, student loans and the murky world of financial derivatives (Bardhan, 2008)....

    [...]

Journal ArticleDOI
TL;DR: This article found that a country's real estate security excess (risk-adjusted) returns are negatively related to its economic openness, which is a testament to increasing global financial integration and its interplay with the real estate sector.
Abstract: Have globalization and increasing economic and financial integration affected the rates of return of publicly traded real estate companies around the world? Using a set of multifactor models for annual data for 946 firms from 16 countries over the sample period, 1995–2002, we estimate the impact of a country's economic openness on returns of publicly traded real estate firms, controlling for the effects of global capital markets, domestic macroeconomic conditions and firm-specific variables. We find that a country's real estate security excess (risk-adjusted) returns are negatively related to its openness. The results are robust across different multifactor model specifications and are a testament to increasing global financial integration and its interplay with the real estate sector.

54 citations