London Residential Property Market Assignment Example | Topics and Well Written Essays - 2000 words

London Residential Property Market - Assignment ExampleIt affects almost our inbuilt lives, from the quality of our lives, our health and well-being it determines not only our choice of transportation means but also our choice of work, and status (Baker 2003). Housing also affects our economic wellbeing, family structure, choice of friends and status in the society. It is with no oddment that, Abraham Maslow classified it under basic need of shelter in his social pyramid.Most often, throneors see valuation as the first step toward intelligent investing. It has been argued (e.g. Penman 2003) that an investor can make informed decisions about where to invest once the value of sh bes argon determine based upon the fundamentals. This is so because, without this value investors can either steal high or sell low. Investors who trade on these stocks atomic number 18 often forced to ask themselves whether they are buying or selling at the right price. (Penman, 2003). In the face of th is situation and their quest for an put together answer, investors turn to various media including internet chat rooms, printed press, talking heads on television. ). In addition, investors consult investment analysts who go forth an almost endless stream of information and recommendations to sort out. There are often claims that some shares are undervalued and vice versa. (Penman, 2003).Against this background, the aim of this paper is to carry out an analysis of the get together Kingdom London residential markets so as to enable investors make informed decisions as to a buy, a hold or sell decision. The next section provides an overview of the London residential markets.1.1.2 Overview of the London Residential MarketProperty prices in United States, the US began falling in 2005 making sub-prime mortgage loans more risky as the borrowers are normally expected to exercise their options to default. Consequently, the US subprime mortgage market is suffering from foreclosures arisin g from falling real domain prices and borrowers exercising their options to default. (Schumer and Maloney, 2007). Investment banks such as Merrill Lynch, Goldman Sachs and CitiGroup all fortune 500 companies have witnessed significant declines in profits, share prices and are planning to lay off workers as a result of the sub-prime crises. (Ellis, 2007). With regard to the United Kingdom UK particularly London, large empirical literature examined the determinants of the two booms experienced by home prices in the early 1970s and the 80s. Findings from these studies provide tentative evidence in support of the view that speculation on expected future offer prices must have been an important force driving actual suffer prices (Muellbauer & Murphy 1997). Concerns over an ongoing house price bubble in the UK have been repeatedly raised(a) by both the press and policy makers. Over the last thirty years, UK house prices have lift in real terms by around 2 % a year and according to HM Treasury (2003) report this stands in contrast to other European countries such as Sweden, France, and Germany where real house prices have decline or remain