Property cycle



Blunden,H.(2015). Discoursesaround negative gearing of investment properties in Australia:HousingStudies,13(1), 1-18

Theauthor explains on the Australian tax rule that advocates for thelosses on rental properties to be deducted from the taxable income asa negative gearing. The article makes an exploration of how thepractice is legitimate and justifiable by politicians. However, thereis criticisms for the practice as a misdirection of investment intounproductive asset speculations that cause housing price inflationsand inequalities (Blunden,2015).The article applies critical discourse analysis in examining hownegative gearing is evaluated for legitimisation. The article is alsostrong in that it argues that property majority and electoralpragmatism are determinants of the government housing policy. Theruling government make the economic systems facilitate high housingprices that cannot erode the voters’ wealth and deal with emergingproblems regarding housing un-affordability. The source is relevantin this study because despite the coherent critique from economistsand the young ones disregarded from home ownership, the policy ispracticed due to the realpolitik considerations. The articleconcludes that the property boom is over due to the right Australiangovernment consideration in addressing the fundamental needs of thevoters (Blunden,2015).The citizens’ interests are therefore addressed through a system ofensuring that house prices are minimized to the lowest levels.

Rowley,S.&amp McKenzie,F.(2011).Sustainingthe Mrs. – Rural, Regional and Remote Housing Markets in WesternAustralia,1 (1), 2-56

Rowleyand McKenzieexplain that housing markets for the non-metropolitan Australia arenot considered by policy makers and scholars. Those factors affectinghouse demand and supply are not clear and are different in the urbanmarkets. They explore rural, regional and remote (3R) markets in theWest of Australia and analyses certain issues that determine thesuccess of the markets. For instance, the resources boom greatlyaffects the 3R towns in the West of Australia. The accommodationdemand in the mining industry and the support entities pressurizethe housing markets for the large and small scale entrepreneurs(Rowley&amp McKenzie,2011) . Resource industry-led demand increases the housing pricesand rents in particular areas making the housing affordability bycertain communities a problem. The article is strong in the way itexplains how the different pricing in rural, regional and remoteareas make the house sellers find a favourable selling price. Theneed in this case is to deal with the property boom that pushes houseprices up. Therefore the end result is a situation where there is anoverall reduction in the property prices.

Tien,F.&ampZhuang,Y.(2013) Time-varying correlations between stock and direct real estatereturns: Journalof Property Investment &amp Finance,31(2), 179-195

Theauthors illustrate the correlations for stocks and real estatereturns that determine the diversification of benefits in portfolios.This helps in the formulation and implementation of better investors’allocations and risk managing strategies (Tien&ampZhuang,2013).The previous studies show how real estate returns are unconditionallycorrelated to the equity returns. However, the assumption thatcorrelations are constant in all times is unlikely. The objective ofthe study is to evaluate time-varying relationships in differenttimes. Therefore, the article is relevant due to the existingcircumstances in understanding the need for varying prices inrelation with the stock prices. At the present time, the propertyboom is over due to the need to invest in real stock. When theinvestors interests are directed to a different source of investment,it is likely that les of the real estate property is demanded (Tien&ampZhuang,2013). Hence, the authors create the right approach in addressing the needfor the housing price variations in dealing with need for differentkinds of investments. For this reason, the research methodology isfocused on stocks and real estate because they are substitute kindsof investment in maximising the owners’ wealth.

Easthope,H., Warnken,J., Sherry,C., Coiacetto,E.,Dredge,D., Guilding,C.,&amp Johnston,N.(2014). How Property Title Impacts Urban Consolidation: ALife Cycle Examination of Multi-title Developments,32(3),289-304

Thearticle illustrates how continued urbanization is causing an increasein international housing. The trend has resulted in adequateresearching interests regarding the social consequences for the highdensity living (Easthope, et al., 2014). Few enquiries have examinedhow property subdivisions cause social issues within the multi-titledhousing. This creates a major gap within the literature relating tomulti-titled developments persons, developments and the metropolitanareas. Therefore, the article applies a lifecycle framework inexamining the profound operational challenges relating to the fusingof private lot ownership and general property ownership. The privateownership creates an unfavourable approach in addressing the realissues that determine the pricing methodologies for properties inAustralia. The comparison of private ownership with public propertiescreates a favourable approach in addressing the critical issues indetermining a right valuation for houses (Easthope, et al., 2014).The article is relevant in this study because it creates the rightdimensions in dealing with the creative approach of realizing abalanced position within the housing markets. The multi-titleddevelopments fetch a different price that makes the long-term pricesfor houses minimal. Hence business scholars interested in knowing theoperations of the Australian market can gain a lot from this source.

Huston,S. (2010). The evolution of residential property price premia in ametropolis: Reconstitutionor contamination,1 (1), 21-36

Residentialproperty prices (premia) have fascinating investors especially duringeuphoria. The social and climatic ramifications are wider. The betterpremia understanding is avoided by the exogenous influences that arepart of their right functioning (Huston,2010).Houston explains that the Australian metropolis have played a keyrole in addressing the ability of the constituent elements in dealingwith the housing pricing challenges. The pricing of property withinthe metropolis is therefore high due to the existing challenges inhaving a fair pricing strategy for the long term house ownership. Thedemand within the metropolis keeps going up. Such a factor makes morereal estate investors plan on such areas. The related plans advancethe right considerations in making investors charge more for thehouses in question. At times the related demand for the metropolitanhouses cannot be compared to their supply (Huston,2010).Hence more and more demand for these houses determines the ability ofthe investors to come up with an incremental rent charging policy.Houston’s article is relevant to business scholars due to itsability to provide a detailed explanation of the right principles inmaking the Australian house prices understandable.

Hui,E.&amp Wang,Z.(2015). canwe predict the property cycle: Astudy of securitized property market,426(1),72-87

Huiand Wangaddress the question of securitized properties. They address thesubject by developing a nonlinear model that probes the qualities ofcycles within Australia for the last 23 years. With a predictabilityof the property cycle, it is possible to realize a betterunderstanding of expected fall in the prices of properties (Hui.&amp Wang,2015). A complete review of the fundamental issues in necessary inmaking property owner determines the right prices for theirproperties. The review of property cycle also considers the rightapplication of the market analysis strategies in realizing a morefunctional market. Consequently, the varying issues in determiningthe success of the right functioning of market forces facilitates auseful price evaluation as per the existing market dimensions. Theidea of securities creates a more focused approach in determining theright prices for all the securitized properties. Therefore thedifferent securities required for each property are a constituentelement in making the necessary calculations. Creative policies ofdealing with price changes are factored within the formulationstrategies to develop a better pricing system that makes the amountscharged on properties go down. Most of the other studies did notconsider the subject of securities but this particular one finds itnecessary to make scholars go through the varying dimensions inrealizing a qualified opinion (Hui.&amp Wang,2015).

Vo,N.(2014). ANew Conceptual Automated Property Valuation Model for ResidentialHousing Market,1 (1), 2-49

Propertymarket is not just a topic within the Australian real estate economybut it has a great proportion within the nation’s overall economicfunctioning. In Victoria, residential properties went above the onetrillion dollars for the year 2012. A typical end of week propertyauction in Victoria is successful. Residential property evaluationsare necessary to the banks and mortgage lenders and real estates. Australians carry out house valuations to determine the ability ofsuch houses to gain the required mortgage funding in realizing therequired ownership (Vo,2014).The author goes on to explain the need for the right valuationtechniques in coming up with the required prices to be supplied tofinanciers who determine the completion of the properties underconstruction. Therefore, the valuations are factored into commoditypricing to increase the expected valuations in making the propertiesprofitable. The new conceptual automated property valuation techniqueis expensive to the capital investments incurred by the owners. Theypass the purchase costs to their clients through the charging of feesthat are paid once the approval has been finalized. All the rightdimensions of the valuation criteria are engaged to ensure that theprices determined are qualified. The source is therefore relevant tothe business students because it makes them understand how additionalcosts in the production process are costly (Vo,2014).

Watson,J.&amp Wickramanayake,J.(2012). the relationship between aggregate managed fund flows andshare market returns in Australia: Journalof International Financial Markets, Institutions &amp Money,22(3), 451-472

Thepaper indicates the relationship between equity fund flow and excessmarket returns in Australia. It explains on the desirable attributesin making home owners understand the need for using equity funds inmaking real estate purchase. The management of equity funds requiresa considerable amount of administration factors that advance the rateof funds usability in getting better returns for the entire marketeconomy (Watson &amp Wickramanayake,2012).Investors will use all the available amounts in addressing the needfor a better system of investment in gaining from the real estateinvestments. For this reason, the real estate prices keep going up.Investors will want to make sure that they gain a lot from theirinvestments in realizing qualified investment criteria. the relatedcosts for the equity management are factored in the pricing todetermine the required prices for the real estate property. It willbe important to deal with the differential issues that advance theright marketing structures for the property.

Fox,R. &amp Tulip, P. (2014). IsHousing overvalued,1(1), 1-40

Foxand Tulip finds it necessary to address the valuation of house bydetermining whether it is cheaper to rent or buy a house. InAustralia, residents find it necessary to buy or rent a housedepending on the availability of funds. Their focus in this case isto come up with a quality approach of owning a house for occupancy.The desirable dimensions in evaluating the housing prices areconsidered before executing the right cause of action. Fox and Tulipstipulates that it is difficult to tell whether property isovervalued or undervalued. If buyers find houses to be undervalued,they are forced to buy them fast incurring an opportunity cost forthe amount invested (Fox&amp Tulip, 2014).The amounts spend in the buying of houses could have been used inother investment objectives. The forgone benefits from the ignoredobjectives make the cost houses to be more than the expected amounts.If buyers consider houses to be overvalued, they do not carry out thenecessary investing in housing. They end up renting the property. Thecost of rentals in the long run ends up being more than the purchasecost. This makes it difficult for the buyers to determine the rightalternative as relates to buying or renting the property.

Labonte,M. (2003). Is there a bubble: Policyconsiderations,1 (1), 1-32

Labonteexplains that it is difficult to tell whether there exists a pricebubble for property in Australia. The prices for property aredetermined by the input factors in the production process. In casethe material used in the construction process are high, then theresulting property is charged high (Labonte, 2003). The determinationof the selling price is after a careful consideration of thedifferent factors that are applied in finalizing the property underconstruction. Therefore, property sellers factor in a profit marginon the production cost to realize a quality selling price. Differentproperty sellers will have different profit margins depending on theconstruction costs incurred at different locations. Consequently, allthe related factors are considered in the price determination. Thismakes it difficult to tell whether the property has been overvaluedor undervalued (Labonte, 2003). The prices for raw materials chargeddifferently at different areas complicate the ability to compareproperty prices at different locations across Australia. Propertybuyers are therefore expected to make a detailed survey indetermining the whether a property boom exists.


Blunden,H.(2015). Discoursesaround negative gearing of investment properties in

Australia:HousingStudies,13(1), 1-18

Easthope,H., Warnken,J., Sherry,C., Coiacetto,E.,Dredge,D., Guilding,C.,&amp Johnston,

N.(2014). How Property Title Impacts Urban Consolidation: ALife Cycle Examination of Multi-title Developments,32(3),289-304

Fox,R. &amp Tulip, P. (2014). IsHousing overvalued,1(1), 1-40

Hui,E.&amp Wang,Z.(2015). Canwe predict the property cycle: Astudy of securitized


Huston,S. (2010). The evolution of residential property price premia in ametropolis:

Reconstitutionor contamination,1 (1), 21-36

Labonte,M. (2003). Is there a bubble: Policyconsiderations,1 (1), 1-32

Rowley,S.&amp Mckenzie,F.(2011).Sustainingthe 3Rs – Rural, Regional and Remote

HousingMarkets in Western Australia,1 (1), 2-56

Tien,F.&ampZhuang,Y.(2013) Time-varying correlations between stock and direct real estate

Returns:Journalof Property Investment &amp Finance,31(2), 179-195

Vo,N.(2014). ANew Conceptual Automated Property Valuation Model for Residential

HousingMarket,1 (1), 2-49

Watson,J.&amp Wickramanayake,J.(2012). the relationship between aggregate managed fund

flowsand share market returns in Australia: Journalof International Financial

Markets,Institutions &amp Money,22(3), 451-472