Learning about the Experiences of First Home Buyers in Metropolitan - Canberra - Research Proposal Example

To demystify the concept of first home buying by collecting and documenting data on the experiences, opportunities and challenges faced by first home buyers in metropolitan settings: A case study to be conducted in Canberra, the Capital city of Australia. Student name: Student number: Date of submission: University affiliation: Contact details: Email address: Table of Contents Table of Contents 2 1.EXECUTIVE SUMMARY 3 2.INTRODUCTION 4 Background 4 Problem statement 4 Researcher Roles 5 Literature review 6 Study assumptions 7 Research questions and hypothesis 8 Objectives of the study 8 3.RESEARCH CONFIGURATION AND METHODOLOGY 10 Study design 10 Target population 10 Sampling techniques and sample size 10 Data collection techniques 12 Data recording techniques 13 Proposed timeline 14 Data analysis techniques 14 4.STRENGTHS AND LIMITATIONS OF THE STUDY 15 5.REFERENCES 15 6.APPENDIX 1: COVER LETTER DRAFT 16 7.APPENDIX II: RESEARCH TIMETABLE 17 8.APPENDIX III: RESEARCH BUDGET 17 1. EXECUTIVE SUMMARY First home buyers experience a challenging task before they settle down all the obligations and requirements needed to own a home. First-time buyers time and again do not have a clear understanding of real estate and mortgage terms. In addition, the amount of paperwork required to secure a mortgage loan sometimes overpowers them (Brown, & Tyson, 2011, p. 83-89). Similarly, the amount of money needed to purchase a home could be frightening. All these challenges and complications can be dealt with to a certain extent through learning from the experienced first home owners and help other people own their first homes as well. This study seeks to identify and document the experiences and challenges facing first home buyers and the most appropriate ways of solving them. The study will be conducted in metropolitan/ urban settings. It will be conducted in Canberra, the Capital city of Australia where many have owned homes and others are contemplating buying their own homes. A sample size of 204 homes/ respondents (both those who have already owned and those considering buying) will be used to collect data relevant to the objectives of the research. Data collected will be analyzed using SPSS, and presented in tables, graphs and charts. The findings of the research will then be made available to all people and this will demystify the concept of first home buying. Data collection data entry will be conducted by experienced people who have the general knowledge of urban settings. All research enumerators and assistants will undergo a thorough training to avoid the possibility of mistakes and errors. The findings of the study will assist people in undertaking the process of first home buying and solving the prospective challenges. 2. INTRODUCTION Background Buying a home is a complicated process involving many procedures and regulations regarding real estate, terms and the challenges which need to be addressed. Understanding the modern state of the real estate market and why these challenges are real is a major first step to a victorious home purchase. Many people have not been able to buy a home even when they have the money just because they lack the general knowledge concerning real estates and this has prompted a research which is aimed at seeing more people own their homes. Mostly, the research targets those people who have already owned houses for the first time as the respondents. They will provide a general experience and the challenges they faced and how they dealt with them. The findings will then be documented and made available to all people. Problem statement The immediate challenges and complexities in the real estate have hindered people from owning homes and this has led to increased poverty and social class differences. Many authors and researchers have said that such processes involved can be much confusing without proper research. Adam Leitman Bailey says that first home buyers ought to be prepared for a long complicated process. He also compares the process of first home buying with one who is riding a bike for the first time. He says that people go out for shopping and spend hours looking for prices of other commodities but no one spends time learning how to buy a home. Paul Stephenson, the Executive officer of Home Builders Association of Notheast Louisiana, puts it that one of the first main things a first time buyer should do is to research about the process, acquire knowledge from those with experience and prepare a home buying budget to avoid unwanted shock later in the process. This calls for substantive research and investigations about first home buying (Kothari, 2004, p. 24) Researcher Roles i) To supervise the process of data collection, data entry process, data analysis, and documentation of the findings. ii) To identify any significant data confidentiality risks likely arising, for instance, possible destruction of questionnaires and taking the necessary control measures. iii) To request for permission from the relevant authorities iv) To ensure that the whole process is conducted as per the legal and ethical requirements. v) To abide by the terms and conditions of the agreement between the research team and the respondents that includes privacy and not using the data collected for other purposes other than the one specified in the agreement. Literature review Information is fundamental in the process of home buying. Being an educated and well informed person puts someone on the best track when they start searching for a home. For instance, many have the perception that it is cheaper to rent a house than to buy or that you have to be a lasting resident of the country for you to be allowed by law to buy a home (Brown, & Tyson, 2011, p. 98). As a matter of fact, one only need a work permit to be a home owner, and in a number of cases, the down payment for buying a new home can even be the same as the starter costs for renting. Paul Stephenson, the Executive officer of Home Builders Association of Notheast Louisiana, says that one of the first main things a first time buyer should consider most is to develop a complete home buying budget to keep away from surprises later in the process (Brown, & Tyson, 2011, p. 98). First home buying can be as stressful as one allows it to be. With the right state of mind, being realistic, optimistic and reasonable, one can easily own a first home. All these combined with the necessary information and support, one is assured to have an achievement with that big purchase the first time. Sharing and asking questions from those who have been through the process, attending seminars and workshops on home buying, visiting a local realtor for further information, talking with builder sales agents are fine ways of doing research (Grim, & Wolf, 2010. p. 156). One critical effect of the permanent increase in real house prices is the impact on entrance to ownership for first home buyers. Access to personal housing for first home buyers depends on the connection between house prices and borrowing capacity as determined by ones income, the cost of new houses and the lenders requirements (John, & White, 2012. P. 57). Adam Leitman Bailey, the author of ‘Finding the Uncommon Deal ‘says that mistakes are bound to happen but buyers should be ready and prepare for a long and complex process. He says that they have to reflect on only what they can qualify for money-wise, if they can take the mortgage. Most people make a decision to buy a home when they sense that they are ready for a mortgage. But Rafael Castellanos, a managing director at Expert Title Insurance puts it clear that just because one can manage to pay for mortgages does not mean that they can afford to own a home. He articulates that there is much more than just considering mortgage payments. Property insurance, homeowners association expenses, taxes, maintenance and other bills are some of the major costs overlooked by first time home buyers when shopping for a place. These costs have a lot of impact on the decisions made (Brown, & Tyson, 2011, p. 98). Home buying does not just start with the decision to search for a home. It begins with a mortgage loan prequalification unless one has enough money to pay on cash basis for their first house. Steve Anderson, the owner and a broker of Re/Max Benchmark Realty in Las Vegas says that first home buyers tend to be afraid of getting prequalified for a mortgage out of fear that the lender may disqualify them. Study assumptions i) It is assumed that respondents shall be willing to participate in the study and provide the relevant information ii) It is anticipated that there will be peace in the areas to be covered iii) It is anticipated that there will be access to enough resources in terms of time, staff, equipment and money. iv) It is assumed that the respondents will give true information on their experiences in first home buying. v) It is assumed that the owners of the home will be available in their homes during data collection. Research questions and hypothesis The following are the questions that will form the guideline when designing the questionnaires and form the basis of the whole study. i) Can one become a potential homebuyer even if one has had bad credit history, and do not have adequate money for a down-payment? ii) Are there particular home ownership grants or programs for single parents? iii) How much money should I have in order to start thinking of owning a first home? iv) In addition to the mortgage loan payment, what other costs do I need to think of? v) I know there is perhaps lots of types of mortgages – what criteria should I use to know which one is the best for me. vi) So what will my mortgage cover? vii) What kind of information and facts should sellers disclose to the buyers in your area? viii) What types of home inspections are standard in the area? ix) Why should I buy a house instead of rent? x) Should I use a real estate broker during the process? How do I find one? Hypotheses Null hypotheses i) Home ownership has monetary and societal advantages once the initial costs are settled. ii) There is no significant relationship between home ownership and poverty. iii) Real estate and mortgage terms have no significance impact on the decision to buy a home provided that one has the general knowledge. Objectives of the study Broad objective To demystify the concept of first home ownership by seeking information and insights from the experienced first home owners and document the findings obtained. Specific objectives i) To examine the challenges faced by first home buyers in both metropolitan and rural settings. ii) To assess the benefits of home ownership iii) To examine the requirements for first home buying iv) To make information available to the public to study and gain the knowledge on home buying. This will be done after the results have been analyzed and documented. v) To simply the complex terms and phrases used in the real estate industry and make the information available to the public. vi) To assess the procedures required for one to obtain a government grant for buying a house. vii) To determine the requirements needed for one to obtain a mortgage and the factors considered when selecting the best types of mortgage. Significance of the study The findings will be made available to all people who may wish to own a home for the first time and have not been able due to the complications involved. From past research, buying a home for the first time has proven to be a challenging task. Many first time buyers do not understand the meaning of real estate and mortgage terms and phrases. The amount of paper work and follow ups needed to secure a mortgage loan sometimes overwhelms them. The amount required to be put together in order to purchase a home can be frightening. This study will seek to obtain facts and other relevant data which will then be analyzed and documented and made available to the public in order to assist those wishing to own a home for the first time. The scope of the study The study will be conducted within the capital city, one of the cities with substantial numbers of first home owners. The city has well informed and educated people thus answering the questionnaires will not be a much problem to them. This area will act as a representative to all other metropolitan settings under study. 3. RESEARCH CONFIGURATION AND METHODOLOGY Study design A cross-sectional analytical study design will be employed to collect data that is relevant to the objectives and describe characteristics of the situation. Enumerators will assist in collecting data and assisting the respondents when answering questions. The questionnaires will be structured in such a way that they only capture the relevant information at the lowest expense and with the minimal time possible (Kothari, 2004, p. 7-31). Study area The study will be conducted in Canberra, the capital city of Australia. Most of the residents have owned their first homes and this will be the best place to learn about the experiences of first home buyers. The area has been selected based on factors like cost constraints, levels of literacy, design and composition of the homes among others. The area will act as a representative of the metropolitan settings under study. Target population The study will target first home buyers who have the experience and expertise in the real estate. Those who are planning to own homes for the first time will also be considered. Our main target will be on those who already have owned homes since they have the knowledge we need to obtain. Similarly, first home prospects will also be considered though their questionnaires will not be as detailed as the ones for real home owners. Sampling techniques and sample size Cluster sampling Cluster sampling will be employed to select the houses/ estates/ homes from where the study data and subjects will be obtained. Selection will be based on cost of transport, convenience of the location, and availability of owners of homes within that location. Simple random sampling After the houses/ estates/ homes have been randomly selected, simple random sampling will be used to select the subjects and questions. Sample size determination The purpose of determining the sample size is to make inferences concerning a population from the sample selected. The city has a population of more than 10,000 homes and thus it may not be possible to conduct the study in all homes. In our study, the sample size will be determined using the formula below which is effective where the total population is above 10, 000 as below. N= Z²PQD d² Where N= the preferred sample size if the population is more than 10,000 Z= is the value of the desired confidence level obtained from a Normal distribution table and it is usually 95%. P = the proportion in the targeted population projected to have the Characteristics being studied (6%) Q= 1-P d= the desired precision/margin of error (set at 0.05) D= the preferred effect which is 1 N= 1.96² X 0.06 X 0.94 = 203.604 0.05² = 204 Thus 204 homes will selected as the sample and the study conducted in those homes (Chow, Shao, & Wang, 2003, p 14-35). Pre-testing of questionnaires Pre-testing will be conducted to test the questionnaires as well address any concern for clarity and proper understanding of the tool. Pre-testing will also help in assessing whether the data collectors understand how to use the tool and accompanying materials such as calendar of events. This will again help in identifying improvements that can be made in the format, style, pictures and other elements of the tool. It will also help to determine how much time it will take to use the tool as well as observe and gather the reactions of the data collectors both positive and negative. Data collection techniques The data for the study will be collected through the use of structured questionnaires. There will be two sets of questionnaires aimed at collecting information about the experiences, benefits and challenges faced by first home buyers. The first set of questionnaires will target real first home buyers who have owned their own homes for the past 20 years. This comprises the main questions and all our focus shall be skewed towards this because of the diverse experience they have. Data collectors will visit the selected households to collect data. Through these questionnaires, data concerning real experiences and procedures involved in home ownership will be collected. The second set of questionnaires will collect data from questionnaires who anticipate owning their homes within the next 5 years. These questionnaires are aimed at collecting data on the challenges they have already faced or the plans they have in place to ensure smooth flow of procedures. Due to lack of enough knowledge and expertise in real estate, these questionnaires will not be much detailed. Data collection will be carried out by energetic and well trained enumerators with the following qualifications: i) University degree ii) Good command of English language and excellent communication skills iii) Must have two years experience in data collection and survey iv) Must be computer literate Before going to the field, the data collectors will undergo a five days training. Before going to the field, the enumerators will go through a three days training. The objective of the training is to have the data gatherers to understand the questionnaires and interview techniques. Training methods will include lectures, role play, discussions and demonstrations. After they are through with the training, they will proceed to the next step which is pre-testing of the questionnaires, then a session to hand over feedback, and make the necessary amendments to the questionnaires. The enumerators will then go out to the field and collect data under my supervision (Petre, & Rugg, 2006, p 93-141). Data recording techniques The respondents will answer the questions in the questionnaires by themselves and any additional information recorded by the data collectors in their research notes book. Data obtained from the questionnaires will be entered in data entry templates created. To ensure quality assurance of data collected, a number of measures will be undertaken. These include: Thorough training of the data entry clerks and other research assistants, pretesting the questionnaire and correcting any mistakes identified before the actual data collection is undertaken, supervision of the processes of data collection and data entry, and double data entry to minimize data entry mistakes and errors. Data entry clerks must have a university degree, must be computer literate and have skills and expertise in the field of data entry. Security and safeguarding of data Security for the personnel and the questionnaires is much relevant thus the research team will be accompanied by at least two security guards. This ensures that the data collected is secure and that the research team is at peace when conducting its activities thus there will an assurance of high quality work at the end of the study program. Ethical consideration Ethical clearance to undertake the study will be sought from the relevant authorities. The go ahead to collect data from the community will be obtained from the provincial administration leaders. Informed consent will then be obtained from the subjects and confidentiality will be maintained throughout data collection and thereafter. In addition, a written note will be obtained from the owners and caretakers of the respective homes specifying that the survey is legal and legitimate. This acts as a clearance note to be shown to the gate keepers and the security personnel manning the gates to avoid any inconveniences. Proposed timeline The study is expected to take 30 days for the data to be collected, recorded and results documented. Data collection will take approximately 15 days, then the rest of the period to be used for data analysis. However, this may be adjusted in case the desired area is not covered within the stipulated time. The research team will be encouraged to be time savers and dwell only on the relevant areas. Training on how to save time will be conducted before the activities commence. Data analysis techniques After data has been recorded, it will be analyzed using charts, graphs and tables. All the data collected will be summarized together and simplified for purposes of use by home seekers. Data from the data entry templates will be transferred to Statistical Package for Social Sciences (SPSS). Frequencies will the n be conducted and results tabled in charts and graphs. The information will then be made available to people through the internet (Petre, & Rugg, 2006, p 152-168). 4. STRENGTHS AND LIMITATIONS OF THE STUDY i) Complex issues can be explained in detail and in a lay man’s language. This assures us of accurate data ii) The data is based on first home experiences and expertise and this and acts as an assurance to real and accurate data iii) The data collectors are not restricted only to the questions in the questionnaire but still can add and record any additional information in their note books. Limitations i) The research questionnaires contents cannot be easily altered once the data collection has already commenced. ii) Additional explanations and details may be limited by time factor. iii) Study quality is dependent on the skills of the research team and may be influenced by personal biases and idiosyncrasies. iv) The volume of data collected may be so much detailed and thus analysis and interpretation may be time consuming. v) Issues of lack of confidentiality may occur vi) Resistance from the respondents may be witnessed. vii) The study will only be conducted in specific areas and this may not be a good representative of the country. The sample selected is not a direct representative of the whole population. 5. REFERENCES Brown, R. & Tyson, E. (2011). Homebuying For Dummies, 3rd Edition. New Jersey: John Wiley & Sons. Chow, S., Shao, J. & Wang, H. (2003). Sample Size Calculations in Clinical Research. Florida: CRC Press. Davies, S. (2007). The First time Home Owners Survival Guide: A Crash Course in Dealing with Repairs, Renovations, Property Tax issues & Other Potential Disasters. New York: Amacom Publishers. Glink, I. R. (2005). 100 Questions Every First Time Home Buyer should ask. New York: Crown Publishing Group. Grim, J., & Wolf, G. (2010). The First time Home Buyer Book. Indiana: Dog Ear Publishing. Jones, C. & White, M. (2012). Challenges of the Housing Economy: An international Perspective. New Jersey: John Wiley & Sons Publisher. Kibbey, H. L. (1996). First Home Buying Guide: How to do it Right the first time. Oberlin College: Panoply Press. Kothari, C. R. (2004). Research Methodology: Methods and Techniques. New Delhi: New Age International. Petre, M. & Rugg, G. (2006). A Gentle Guide to Research Methods. New York: McGraw-Hill International. 6. APPENDIX 1: COVER LETTER DRAFT To demystify the concept of first home buying by collecting and documenting data on the experiences, opportunities and challenges faced by first home buyers in metropolitan settings: A case study to be conducted in Canberra, the Capital city of Australia. Submitted by: Student name: Student number: Date of submission: University affiliation: Contact details: Email address 7. APPENDIX II: RESEARCH TIMETABLE The study will take approximately 30 days WEEK 1 WEEK 2 WEEK 3 WEEK 4 Proposal development Data collection and data entry Data collection and data entry Data analysis and documenting 8. APPENDIX III: RESEARCH BUDGET ITEM DESCRIPTION COST (US $) Research Proposal preparation 1.Typesetting 2. Printing 3.Proposal binding 200 150 62 Materials and research instruments 1. Acquiring, organizing and preparing 2. Pre-testing of tools 500 250 Data collection Allowance for research assistants 1250 Data management and analysis 1. Stationery 2.Data analysis 250 1200 Total cost 3862 Read More