Sugar is as damaging and addictive as alcohol or tobacco and should be regulated, claim US health experts…………………………………….………….….6
Nigeria fuel strike brings country to a halt. A general strike in Nigeria…
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These days, however, we’re facing another formidable foe. It’s called real estate. Investors (young and old) have a significant portion of their net worth invested in their homes, and we’re seeing more of them consider adding an income property to their portfolio.
I wanted to see what we’re up against, so I put residential real estate through my usual research process. Just as I do with stocks and bonds, I looked at houses and condos from the perspective of economic fundamentals, valuation and market sentiment.
Starting with the economics, it would appear the supply side of the equation looks manageable (except maybe condos in Toronto). Housing starts have exceeded household formation for a decade, but the inventory of unsold homes is not excessive. The demand side, however, is less encouraging.
What drives real estate over the long term is income growth (i.e. jobs). As Canada becomes less competitive in the global markets and our governments stop prescribing stimulus, employment trends arent too exciting. In the meantime, our home ownership rate has gone from 62 per cent 15 years ago to 70 per cent today, slightly above the level attained in the U.S. in 2006.
Still on the demand side, the demographic charts show the segment of the population that’s the strongest net buyer of houses (those aged 25 to 34) is about to start declining, while the pool of potential sellers (over 65) is continuing to increase. The situation is the opposite to what prevailed in the 70’s and 80’s when the early boomers had a huge wave of buyers following behind them.
While supply and demand factors are important, what’s really driving real estate these days is financing. Sellers can charge fancy prices when buyers are plugging 2 to 3 per cent into their mortgage calculators. But here too, the trends are worrisome. Rates have little room to drop (despite Bank of Montreal’s efforts) and consumer debt levels are now equivalent to the U.S. at its
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The demand curve plots the combination of both the quantity and the price of a commodity. A slight shift in the price, results in a shift along the demand curve price. A slight change in the price would certainly result to a shift of the demand curve. Technically speaking, a shift along the demand curve can be termed as a shift in the quantity demanded.
Since to sell more units of its product the firm has to lower its prices, the firm faces a downward sloping demand curve (Ison & Stuart, 2006). Since each additional unit sells only at a lower price, the marginal revenue curve lies below the average revenue curve or the demand curve.
There are abundant signs which are pointing towards positive glimpses because there has been a little growth in the overall income of UK and the statistics are revealing that double dip depression is now being diminished from the UK’s economy(Alderman & Shelburne, 2011).
Therefore the author has termed Google as being operating as a monopoly in the search market. The author refers that Google has been dominantly playing its role in the search market and is this dominance is favored by governments as they are not placing any restrictions on the practices adopted by Google.
Short run equilibrium of a firm can be derived based on the total revenue and total cost and marginal revenue and marginal cost and marginal revenue and marginal cost. As firms are price-takers, each firm in an industry tries to maximize its profit by adjusting the output to a level where Marginal Cost (MC) =Marginal Revenue (MR).
The economic approach to consumer behavior delves into consumer demand analysis. The Theory of consumer demand is the analysis of demand with regard to consumer behavior and rationale when changes occur in variable factors such as price, income and
without making anybody else worse off.” From this rationale economists have deduced the conceptions of Pareto improvement and Pareto optimality which is otherwise know as Pareto efficiency. A condition is believed Pareto-optimal if it is not possible to make additional
In order to help the auto industry to withstand the challenge and save it from complete collapse, government intervened and provided equity funding to large auto makers in the country. This article is about the role of government in intervening the
by Anil Dawar for Express newspaper, the judge took a swipe at those whom he believed were endangering the British people, the politicians and the police force. It was his opinion that the constant changing between introducing and abolishing suspended sentences is a move that
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