A real estate project can fail not because it does not provide value, but because it does not correspond to what the buyers are looking for. The basic objective of qualitative factors about buyers’ preferences is to ensure robustness of decision making. Brereton et.al. (2008) explore the link between an individual’s subjective wellbeing and the geography and environment within their proximity. They found that living in public housing has a negative relationship with life satisfaction after controlling for income and a range of socio-economic and environmental factors. In several reviews of the factors associated with subjective well-being it is suggested that living in an area perceived as deprived is detrimental to life satisfaction (Dolan et.al.(2008) and Abraham et.al. (2010)). Thrall (2002) reports evidence that success in real estate investment is likely to be repeated by the success in identifying the geographic context of a successful real estate asset. Demographics and other spatial attributes within the real estate area have most bearing on the success of the real estate development, such as a shopping mall or entertainment facilities.
Real estate market analysts have most frequently relied upon the ring study and drive time analysis (Fik (2005)).In the ring study, circles are drawn around the real estate asset or proposed site. The radius kept on increasing until a specified number or percentages of customers have been captured by the circular trade area. This radius is then used by the analyst to calculate hypothetical areas for proposed sites. Drive time analysis helps you to calculate the time of travel between the source and the destination. Drive-time between areas considers customers’ willingness-to-travel, multi...
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...us of the locality i.e. whether affluent people are residing or people living on state benefit are residing in that locality. Fujiwara et.al (2011) and Podor (2010) have discussed how crime and safety affect neighbourhood status with a great impact on real estate price. Dolan et.al (2008) stated that a key parameter for life satisfaction is neighbourhood status. Rabianski (1995) concluded that a major element for life satisfaction is the access to green areas. Podor (2010) has mentioned that basic education is one of the factors which influence people’s decision in buying or selling real estate unit. People want to live in that locality which matches their education because they will be able to find neighbours according that educational status. Brereton et.al (2008) found out that there is a tendency for people with same ethnic race tends to live in same locality.
Gentrification is defined as the process by which the wealthy or upper middle class uproot poorer individuals through the renovation and rebuilding of poor neighborhoods. Many long-term residents find themselves no longer able to afford to live in an area, where the rent and property values are increasing. Gentrification is a very controversial topic, revealing both the positive and negative aspects of the process. Some of the more desirable outcomes include reduced crime rate, increased economic activity, and the building of new infrastructures. However, it is debated whether the negatives overwhelm the positive. An increase in the number of evictions of low-income families, often racial minorities can lead to a decline of diversity
Leonard, T., & Murdoch, J. C. (2009). The neighborhood effects of foreclosure. Journal of Geographical Systems, 11(4), 317-332. doi:10.1007/s10109-009-0088-6
... motivation for wealthy individuals to return to the inner-city core but it also provides impetus for commercial and retail mixed-use to follow, increasing local revenue for cities (Duany, 2001). Proponents of gentrification profess that this increase in municipal revenue from sales and property taxes allows for the funding of city improvements, in the form of job opportunities, improved schools and parks, retail markets and increased sense of security and safety ((Davidson (2009), Ellen & O’Reagan (2007), Formoso et. al (2010)). Due to the increase in housing and private rental prices and the general decrease of the affordable housing stock in gentrifying areas, financially-precarious communities such as the elderly, female-headed households, and blue-collar workers can no longer afford to live in newly developed spaces ((Schill & Nathan (1983), Atkinson, (2000)).
“Gentrification refers to trends in the neighborhood development that tend to attract more affluent residents, and in the instances concentrates scale commercial investment.”(Bennet,).This means that gentrification can change how a neighborhood is ran or even how much income the community takes in depending on what businesses come in and what class of people decide to invest into that community. In this paper i will be discussing gentrification and and poverty, pros and cons of gentrification, relationships due to gentrification, conflict due to gentrification, reactions/ feelings or of small business owners about
Not only were the agents within the housing market, outside agents pushed for a segregated neighborhood. The main interest and objective of these actors was to prevent racial diversity in their neighborhood. Most of their motives were driven by the fact that racial minorities are harmful to the environment of the suburbia. William Levitt “made it an unofficial policy not to sell homes to minorities” (Hales). Ultimately, the goal of the suburbia was to keep the housing cost high and the neighborhoods safe.
Squires, G. D., Friedman, S., & Siadat, C. (2001). Housing Segregation in the United States: Does Race Matter? Cambridge, MA.
People commonly believe that property values decline when blacks or non-white move into a neighborhood. However, the real reason why property values decline is because of whites moving away and taking their resources with them. White homebuyers fear that property values will decline rapidly when nonwhite residents begin moving into a neighborhood. What they do not take into consideration is that the nonwhite residents may be their socioeconomic equals. Instead, they focus on race—they categorize individuals into socioeconomic classes on the basis of race. When whites or well-intentioned residents move away, businesses and jobs soon follow suit, thus, creating improvised neighborhoods.
Understanding what residential segregation is an important factor in being able to understand the concepts of the negative acts that are practiced by realtors and banks in order to further segregate individuals based of their race and/or income. According to The Color of Justice, “Racial and ethnic segregation in housing has been the result of several factors: the historic practice of de jure segregation, covert discrimination, and group choice. In the South and some Northern communities, local ordinances prohibited African Americans from living in white neighborhoods (Walker, Spohn, and Delone, 2012).” These acts of segregation are just as common as someone brushing their teeth, no matter where you may be north or south this form of segregation is in full effect all over the world. For example “In the North, many property owners adopted restrictive covenants that prohibited the sale of property to African Americans and Jews (Walker, Spohn, Delone, 2012).” Although this form of segregation may divide minorities it has become more of a personal choice.
Location, location, location -- it’s the old realtor 's mantra for what the most important feature is when looking at a potential house. If the house is in a bad neighborhood, it may not be suitable for the buyers. In searching for a house, many people will look at how safe the surrounding area is. If it’s not safe, they will tend stray away. Jane Jacobs understood the importance of this and knew how cities could maintain this safety, but warned of what would become of them if they did not diverge from the current city styles. More modern planners, such as Joel Kotkin argue that Jacobs’s lesson is no longer applicable to modern cities because they have different functions than those of the past. This argument is valid in the sense that city
John Buntin notes that the arrival of high-income persons will definitely attract services such as schools, better jobs for residents, better roads and electricity among other services (Gentrification Is a Myth). Therefore, gentrification appeals to individuals who are able to put pressure on local authorities by power of their economic status. As a result, the standards of living of developing cities rise alongside the cost of living in those same cities.
Gentrification does not follow traditional urban growth theory, which predicts ?the decline of inner city areas as monied classes move to the metropolitan fringe.? The traditional economic model of real estate says that wealthy people can choose their housing from the total city market (Schwirian 96). Once these people decide to live in the suburbs, the lower social classes move into the old homes of the upper class, essentially handing housing down the socioeconomic ladder. Gentrification is actually a reversal of this process. For a variety of reasons, many inner city areas are becoming more attractive to the wealthy, and they are selecting their housing in those areas (Schwirian 96). The problem is that now when the wealthy take over poor homes and renovate them, the poor cannot afford the housing that the wealthy have abandoned. Many researchers have argued whether gentrification has truly created problems in cities. I will analyze the arguments for and against gentrification by exploring the subject from both sides.
The solutions to residential segregation could be classified according to the basis which include place, people and indirect approaches (Bouston, 2013). The main aim of policies based on place is to improve the amenities and housing stocks in black dominated neighborhoods as a means of encouraging the white to settle in these areas or alternatively creation of affordable options for housing in the whites’ neighborhood to encourage the white settling in such places. However the challenges to this approach is that research conducted showed that the white households still had a negative mentality towards the black neighborhoods and no matter the improvement to these neighborhoods, they still won’t move. Another challenge with the policy is that improvements to neighborhoods will consequently lead to rise in house prices making it unaffordable even to those currently living
.Given the choice between two investment properties—both 3-bedroom, 2-bathroom, 1,700-square-foot single family residences listed at $125,500, one a turnkey in Stockton, California, and the other a fixer-upper in Chapel Hill, North Carolina—and the singular goal of turning the maximum profit on my investment, I would choose to purchase the Chapel Hill home. Because I believe that the listing price of that property is lower than its true value, and because I expect a growing real estate market to increase the value of the home by 10 percent over the next two years, I think that with an additional investment of $50,000 in renovations and a two-year buy-and-hold rental strategy, I could flip the Chapel Hill home for more than $180,000 in profit.
Most people, today, are looking forward to buying their first property. When individuals decide to buy a house those individuals would have to look at all their options and all the advantages and disadvantages that come from purchasing a house. The economy plays a huge role in the decision whether people will purchase a house, purchase a condominiums, or rent property.
Disadvantaged neighborhoods often present problems such as concentrated poverty, pollution, neglect of maintenance, vandalism, crime, poor mental and physical health and social isolation, which lead to a poor quality of life (Dekker, 2007; Sampson 2012). Many Western countries are trying to both approach and arrest these problems by designing area-based improvement policies (Gade, 2001; Andersson & Musterd, 2005). Before such programs can be implemented, however, one must be aware of which factors may be involved in the problems present in disadvantaged neighborhoods. Although research in this field suggests that there are many factors responsible for the above mentioned problems, this essay will only focus on the social dimension, and more specifically on social cohesion. Although debated, research suggests that Social cohesion may play a critical role in improving quality of life in disadvantaged neighborhoods, for example by reducing crime (Sampson, 2012; Dekker, 2007; Dekker & Bolt, 2005).