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What is the average capitalization rate ('cap rate') in the UK?

The capitalization rate ('cap rate') of a property is the net operating income (NOI) divided by the current market price of the property. The NOI is the annual income obtained from renting the ...
asph's user avatar
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1 answer
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Are there any examples of companies prioritizing market dominance or intellectual property ownership over long-term profitability?

I want to know if market dominance (total share of a market's profits) is more important than long-term profitability because psychologists believe that humans and other animals have a social ...
Jude Zambarakji's user avatar
-3 votes
1 answer
117 views

Is there any evidence for tragedy of the commons or is it all actually the tragedy of private ownership?

The tragedy of the commons is sold as the idea that common property is over used, and thus arguments are made that there should be regulations over the commons, or it should be owned privately, ...
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2 votes
1 answer
83 views

What would happen to the housing market if investors could only have one extra house?

What would happen if investors were restricted to only own 2 apartments, one to live in and one to rent out? They wouldn't be able to own any more apartments. How would it look? If needed, explain ...
Telma's user avatar
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0 answers
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Concentration Ratio - Real Estate Appraisals/Valuations

with reference to "Market Structures", how can you work out whether your industry is operating in an Oligopoly/monopolistic/...-environment if there is insufficient data? I'm specifically ...
AnthonyWDR's user avatar
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16 views

Which system or country permits the most flexibility in the real estate market?

As to the idea that a free market is good because it is dynamic and flexible and therefore if citizens altogether feel that something is needed in society, a service of any kind to deal with the ...
Julius Hamilton's user avatar
1 vote
2 answers
64 views

Is there any economical rational for a government to maintain low property taxes and rather high work-related taxes?

I have recently heard an analyst arguing that where I live (Romania) we have very low property taxes (0.08% to 0.20% for residential buildings), but rather high work-related taxes. This was presented ...
Alexei's user avatar
  • 251
0 votes
1 answer
132 views

Does neoclassical economics explain or assume private property rights? [closed]

I understand that neoclassical economics is empirical, in contrast to the a priori base of Austrian economics. I therefore wonder if neoclassical economics also explains, rather than assumes, private ...
sba222's user avatar
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3 votes
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148 views

How does the Austrian School view land rents?

I have come across these publications: The Spatial Market Process. Advances in Austrian Economics Vol. 16. In “An Austrian Theory of Spatial Land,” Fred E. Foldvary addresses the disregard of spatial ...
sba222's user avatar
  • 831
4 votes
1 answer
137 views

In the case of externalities, does the initial allocation of rights affect the final outcome from the perspective of each party?

I think I understand the main implication of the Coase Theorem—that the outcome will be Pareto efficient regardless of the initial allocation of property rights, provided transaction costs are zero, ...
Bill's user avatar
  • 143
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References on foreign ownership of domestic assets

In Piketty's Capital in the 21st Century, he occasionally analyzes the ownership of domestic assets by foreign countries. On p. 192, he writes: Japan and Germany have accumulated quite significant ...
Favst's user avatar
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Does the property values (or rental price) of a neighborhood/region increase with new residents taking up empty lots or apartments changing residency?

Does research explore the idea that there is an association of house prices in an area or neighborhood with the influx of new residents? That is, if there are empty spaces in a neighborhood, or ...
Vass's user avatar
  • 111
4 votes
4 answers
638 views

If house prices appreciate, why do developers sell them?

In many parts of the world, people buy a house expecting its value to increase over time. But if is widely believed that the building's value will increase, what incentive is there for the developer ...
joeytwiddle's user avatar
0 votes
1 answer
107 views

How is it economically responsible to destroy proprty which has value? [closed]

precursor: bitcoin.stackexchange.com/q/1851 How can it be economically responsible to destroy property which has value? If a property is destroyed (which is the right of the property holder in most ...
Willtech's user avatar
  • 109
2 votes
0 answers
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Where to find official sources for price-to-rent ratio?

Where can I find price-to-rent ratio data for housing real estate in any major nation? Any G-20 country or any top-10 country by GDP would be good for me, as long as it's official data like from a ...
user69715's user avatar
  • 214
3 votes
1 answer
126 views

Episodes of Housing Crashes and Never Recovering

Looking at many housing markets in major cities around the world today it looks like most (London, New York, Sydney, Beijing, Toronto,...) have become totally detached from the earnings of the local ...
Trajan's user avatar
  • 659
3 votes
1 answer
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Why does optimal allocation call for unlimited distribution of information?

In his seminal paper Arrow (1962) states that information should be distributed without limit if an optimal allocation is to be achieved. Quote (p. 614-615): The cost of transmitting a given body ...
Fusscreme's user avatar
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4 votes
1 answer
177 views

Did a similar property boom take place in another country or throughout history like we have seen in London? If so how did it effect the economy?

The London property market has seen a sharp increase in the average house price. If we go back to the 70's the average UK and average London price were almost the same, however since than the gap has ...
Sharingan's user avatar
  • 141
1 vote
0 answers
51 views

What is the name for this turn-based property trading game?

Does anyone know what the following allocation strategy is called? Problem: How to allocate N rooms to N roommates? Example: allocate 4 rooms (1,2,3,4) amongst 4 roommates (A,B,C,D) total rent of $...
Alex Sieke's user avatar
0 votes
1 answer
32 views

What is the government's ideal rate of growth for property prices?

If property prices raise too quickly, it can price people out of the market, cause mortgage stress and financial hardship and create a property bubble. If property prices fall too quickly, it can be ...
Diskdrive's user avatar
  • 101
5 votes
4 answers
723 views

What would happen if a company bought back of all of its stock? Would it own 100% of itself?

Companies occasionally own some of their own stock. A company owning its own stock is actually pretty weird when you think about it. If I own 1% of a business's stock (and therefore own 1% of the ...
Christopher King's user avatar
2 votes
1 answer
82 views

Listed property price v.s. transaction price

A house may be listed at a certain price (e.g. £200,000), but sells for a different price (e.g. £210,000). In terms of economic theory, how does the transaction price tell us more information than ...
Kelly's user avatar
  • 329
1 vote
0 answers
93 views

What will happen to property prices if local currency weakens against USD?

Say that the conversion rate of a local currency changes so that the currency is now relatively weaker against foreign currencies and as a result the inflation rate increases and as a result of that ...
Jasper Citi's user avatar
3 votes
1 answer
188 views

Conforming mortgage loan limits by county and year

US law restricts the Government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac to purchase only those residential mortgages smaller (by origination balance) than a limit, the "conforming loan ...
BKay's user avatar
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5 votes
3 answers
1k views

How can valuable retail real-estate stay vacant for an extended period of time?

Anecdotally, the story often goes like this: A land owner leases his commercial retail space at an expensive price. The place stays vacant for months or years at a time. Eventually someone decides to ...
Jamzy's user avatar
  • 3,751
1 vote
1 answer
105 views

Unique features of Property & Urban Economics

The real estate sector represents a substantial share of the economy. Analysing such a sector provides it's own unique challenges. For example, it is important to variables such as population ...
Jamzy's user avatar
  • 3,751
2 votes
1 answer
92 views

Why are property price-to-rent ratios relatively low in the US?

I am looking at the data here (for 2015). There are data for 489 cities from around the world, of which 82 are in the US. Using the measure "Price To Rent Ratio Outside Of City Centre", 69 of the 82 ...
user avatar
13 votes
6 answers
919 views

Does land value tax create an incentive to merge land ownerships?

LVT is "a tax on the unimproved value of land", and "in theory, it does not distort decision making". But if I own land then improvements such as buildings on my neighbour's land can easily increase ...
bdsl's user avatar
  • 271