Explain how the value of property is affected by changes in the Essay

Explain how the value of property is affected by changes in the property market - Essay Example Even economic harmonisation in the form of the inception of the European Union has failed to change the uniquely individual property market and value practices in the EU member states.This is true even today despite the same observations carried out by Downie (1995) and McIntosh and Ellis 1994).These factors which affect property values differ from jurisdiction to jurisdiction based on the different business and economic cultures within the European Union member states which will result in the variability of valuation approaches from country to country (Downie et al., 1996). Moreover these factors will also be affected by financial, fiscal and economic environments of a country with the result of widely divergent real estate structures.These factors as understood by Waroloa and Bernask (1996) can have direct and indirect influences upon the structure, operation and valuation of the real estate concerns in an economy.With reference to the particular set up of Europe they observed that these factors include Factors like those set out in the Table below. The modern international property market as lacking a central trading centre has often been largely criticised as a reason that the value of property prices will always be victim to the particular circumstances of a country as the market is not based on a cluster of geographical and sectoral submarkets.The problem is no two properties (with the exception of homogenous flats a building arguably) are identical and there is a significant information gap for those involved in such transactions.Here we can contrast the Property market with the Equity and Bonds market in the sense that this information gap for the realtor and the buyer necessitates the use of market valautions.This same estimate of price is likely to stay in a state of flux due to the divergent valuation methods and different political weather amongst many other factors

Allocation of Scarce Resources in a Market Mechanism Assignment

Allocation of Scarce Resources in a Market Mechanism - Assignment Example Hence the need for an efficient allocation of the existing resource base through prioritization of wants is being felt increasingly. Effective allocation of the scarce resource base is the only way through which a country can satisfy the demands of its growing population and work towards profitability. To counter the system of effective allocation of the existing resource base the economies of the world are generally faced by three fundamental questions. Firstly, the economy needs to consider the nature and the pattern of the goods and services that need to be produced to meet the needs and demands of the growing population. Secondly, the economy needs to identify the most effective way through which the goods and services can be produced to justify the use of depleting resource base. Thirdly, the economy must understand the needs of the target population who will eventually consume the goods and services produced. (Riley, 2006; Economic Systems, 2010). To this end, it is found that allocation of the scarce and limited resource base in an economy driven by ‘market mechanism’ is conditioned on the price quotes obtained through auctions or bids. The resources of the economy are transferred to private hands through the system of bids and auctions. The observation made in this regard shows that the government of different countries operating in a market mechanism has made the private sector get a license in relation to oil exploration and land property rights. The private system in the economy owing to the above fact has emerged as key players in areas like broadcasting, education, housing and oil exploration. Here, it must be noted that allocation of the limited resource base through market mechanism depends on the purchaser’s desire to pay for the same. Information about the highest price that can be paid by the purchasers are gathered through the bidding system and the decision is taken henceforth on the acquired data.