Challenged from the Outside

2021 ◽  
pp. 216-234
Author(s):  
Daniel R. Garodnick
Keyword(s):  
Real Estate ◽  
Short Term

This chapter discusses how residents of Stuyvesant Town received a colorful missive from Gerald Guterman, a real-estate speculator, which attacked and directly undermined the Tenants Association and Brookfield, the new partner of the complex buildings. It explores Guterman's plan of converting the Stuy Town property to a co-op and selling units to tenants at $130,000 per unit. It also points out how Guterman's plan sparked an anxious debate about who would become the owner of units that were not sold to the tenants who lived in them. The chapter mentions Guterman's intention to sell occupied rent-stabilized units to individual outside investors, a scenario most longtime rent-stabilized renters objected to. It also elaborates Daniel Garodnick's concerns on Guterman's model of short-term ownership that lacked any long-term affordability protections.

Feedback trading strategies in international real estate markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chrysanthi Balomenou ◽  
Vassilios Babalos ◽  
Dimitrios Vortelinos ◽  
Athanasios Koulakiotis
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Short Term ◽  
Content Type ◽  
Real Estate Markets ◽  
The Real Estate ◽  
The Uk ◽  
The Impact ◽  
Feedback Trading

Purpose Motivated by recent evidence that securitized real estate returns exhibit higher levels of predictability than stock market returns and that feedback trading (FT) can induce returns autocorrelation and market volatility, the purpose of this study is to examine the impact of FT strategies on long-term market volatility of eight international real estate markets (UK, Germany, France, Italy, Sweden, Australia, Japan and Hong Kong). Design/methodology/approach Assuming that the return autocorrelation may vary over time and the impact of positive feedback trading (PFT) or negative feedback trading (NFT) could be a function of return volatility, the authors use a combination of a FT model and a fractionally integrated Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) model. Findings The results are mixed, revealing that both PFT and NFT strategies persist. Specifically, the authors detect PFT in the real estate markets of France, Hong Kong and Italy as opposed to the real estate markets of Australia, Germany, Japan and Sweden where NFT was present. A noteworthy exception is the UK real estate market, with important and rational FT strategies to sustain. With respect to the long-term volatility persistence, this seems to capture the mean reversion of real estate returns in the UK and Hong Kong markets. In general, the results are not consistent with those reported in previous studies because NFT dominates PFT in the majority of real estate markets under consideration. Originality/value The main contribution of this study is the investigation of the link between short-term PFT or NFT and long-term volatility in eight international real estate markets, symmetrically. Particular attention has been given to the link between short-term FT and long-term volatility, by means of a fractionally integrated GARCH approach, a symmetric one. Moreover, investigating the relationship between returns’ volatility and investors’ strategies based on FT entails significant implications because real estate assets offer a good alternative investment for many investors and speculators.

Factors affecting financial leveraging for BSE listed real estate development companies in India

2018 ◽  
Vol 23 (3) ◽  
pp. 274-294
Author(s):  
Rakesh Kumar Sharma
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Short Term ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
Tax Shield ◽  
Total Debt ◽  
Real Estate Sector

PurposeThe real estate sector in India has assumed growing importance with the liberalisation of the economy. Developments in the real estate sector are being influenced by the developments in the retail, hospitality and entertainment (e.g. hotels, resorts and cinema theatres) segment, economic services (e.g. hospitals, schools) and information technology-enabled services (such as call centres), and vice versa. This paper aims to study the determinants of capital structure by taking into account 125 major Bombay Stock Exchange (BSE) listed real estate companies selected on the basis of their market capitalisation.Design/methodology/approachTo discover what determines capital structure, nine firm level explanatory variables (profitability-EBIT margin, return on assets, earnings volatility, non-debt tax shield, tangibility, size, growth, age debt service ratio and tax shield) were selected and regressed against the appropriate capital structure measures, namely, total debt to total assets, long-term debts to total assets, short-term debts to total assets, total liabilities to total liabilities plus equity, total debt to capital used and total debt to total liabilities plus equity. A sample of 125 real estate companies was taken and secondary data were collected. Consequently, multivariate regression analysis was made based on financial statement data of the selected companies over the study period of 2009-2015.FindingsThe major findings of the study indicated that profitability, size, age, debt service capacity growth and tax shield variables are the significant firm-level determinants.Research limitations/implicationsThe present study is carried out by taking data of only 25 companies listed on the BSE and time period covered from 2009 from 2015. Time period and sample size may be limitations of the current study.Practical implicationsThe present study is an empirical analysis of the determinants of leverage of real estate sector in India with most recent available data. Different regression equations have been formed to develop the models using firm-specific determinants and different measures of leverage or capital structure. Data were regressed using SPSS application software, and the resulting (or obtained) regression outputs are analysed. This study will help the Indian real estate companies to the know the impact of different variables while raising short-term and long-term loans.Social implicationsThe current study will benefit all stakeholders of society who are fascinated to be acquainted with the financing of real estate companies and the factors affecting long-term and short-term financing of this sector. Specifically, public engrossed in different modes of investment and financial institution will be the prime gainers.Originality/valueThe present study has been completed using authentic data from the annual reports and database. This study uses explanatory variables and different measures of leverage which were limited in use in previous studies. Moreover, this research is a comprehensive study that deals with developing different regression models by using diverse measures of leverage.

Legal Construction of Employer Payment Bond System in Engineering Management

2012 ◽  
Vol 174-177 ◽  
pp. 3339-3342
Author(s):  
Jia De Yuan
Keyword(s):  
Real Estate ◽  
House Price ◽  
Engineering Management ◽  
Short Term ◽  
Construction Enterprise ◽  
Wide Range ◽  
Bond System ◽  
Potential Risks ◽  
Transfer Potential

With the rational regression of house price and the decline in volume of real estate transactions across the country, both real estate development enterprise and construction enterprise face a series of fund shortage in the short term, or even medium-to-long term. Because construction enterprise has a lot of workers , lack of funding leads directly to a wide range of negative social effects. How to make construction enterprise avoid and transfer potential risks effectively? the resolutions include revising the existing laws, consolidating the project priorities of No. 286 clause of contract law, endowing clearly the contractor with the lien, establishing practical employer payment bond system.

scholarly journals Financing Structure and Liquidity Risk: Lesson from Malaysian Experience

2017 ◽  
Vol 6 (2) ◽  
pp. 125-148
Author(s):  
Aisyah Abdul-Rahman ◽  
Noor Latifah Hanim Mohd Said ◽  
Ahmad Azam Sulaiman
Keyword(s):  
Real Estate ◽  
Risk Measures ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Short Term ◽  
Financing Structure ◽  
Short And Long Term ◽  
Conventional Banks ◽  
Real Estate Financing

Abstract This study examines the relationship between financing structure and bank liquidity risk. We compare the findings between Islamic and conventional banks for the case of Malaysia. We adopt four measures to represent financing structure; namely 1) real estate financing, 2) financing concentration, 3) stability of short-term financing structure and 4) stability of medium-term financing structure. Two BASEL III liquidity risk measures are tested; namely, liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) to measure short- and long-term liquidity risk, respectively. Based on panel data regression comprising 27 conventional and 17 Islamic banks from 1994 to 2014, our findings show that real estate financing and stability of short-term financing structure for Islamic banks are positively related to both liquidity risk measures. This implies that an increasing number of real estate financing and a stable short-term financing structure may increase Islamic banks’ short- and long-term liquidity risks. However, although real estate financing does not affect conventional banks’ liquidity risks, a stable short-term financing structure and increasing financing concentration can positively influence bank long-term liquidity risk. Our findings shed light crucial policy implications for regulatory bodies and market players in the context of liquidity risk management framework as well as the need to develop a separate framework between conventional and Islamic banking institutions.

scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (3) ◽  
pp. 287-324
Author(s):  
J. Andrew Hansz ◽  
◽  
Wikrom Prombutr ◽  
Ying Zhang ◽  
Tingyu Zhou ◽  
...  
Keyword(s):  
Real Estate ◽  
Causal Relation ◽  
Equity Market ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Equity Reits ◽  
Market Factor

We investigate the long- and short-term interrelationships between equity and mortgage real estate investment trusts (REITs) by focusing on decomposed income and appreciation components. We find that the previously documented long-term cointegration relation between equity and mortgage REIT prices stems exclusively from their income components and subsequently, the appreciation components contribute nothing to such a long-term relationship. We also find that the previously documented short-term causal relation between equity and mortgage REIT returns is due to the causality that runs from the appreciation returns of equity REITs to those of mortgage REITs while their income returns do not lead to causality. Lastly, we show that the income returns of both equity and mortgage REITs are influenced by the same equity market factor while their appreciation returns are responsive to different macroeconomic factors, which explain the heterogeneous performance between them.

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (3) ◽  
pp. 359-394
Author(s):  
Paul Gallimore ◽  
◽  
J. Andrew Hansz ◽  
Wikrom Prombutr ◽  
Ying Zhang ◽  
...  
Keyword(s):  
Real Estate ◽  
Portfolio Diversification ◽  
Portfolio Performance ◽  
Short Term ◽  
Vector Autoregressive ◽  
Real Estate Markets ◽  
Market Portfolio ◽  
Cointegration Tests ◽  
Causality Tests

We investigate long-term cointegrative and short-term causal relations among seven U.S. sectoral REITs. First, cointegration tests identify one long-term cointegrative relation among five of the sectors, which suggests that two of the sectors are outside the cointegrative space. Second, short-term Granger causality tests identify three leading and two following cointegrated sectors. Third, a proposed vector autoregressive model indicates that a stronger cointegrating effect is induced by declining real estate markets and a multivariate sensitivity regression model shows that unexpected inflation significantly and negatively influences the cointegrative disequilibrium. Lastly, our cointegration-based portfolio performance analyses show that the inferior performance of the all-sector market portfolio stems from containing the redundant cointegrated sectors which shatter portfolio diversification.

scholarly journals Property Value and Sustainability. The Future of Living: Focus on Short-Term Rents in Italy

2020 ◽  
Vol 12 (7) ◽  
pp. 2721
Author(s):  
Andrea Bassi ◽  
Monica Moscatelli
Keyword(s):  
Real Estate ◽  
Good Alternative ◽  
Real Estate Market ◽  
Living Environment ◽  
Property Value ◽  
Short Term ◽  
The People ◽  
Increasing Demand ◽  
Sustainability Standards

Society is evolving faster and faster and there are many changes in our everyday living environment, especially concerning buildings. Buildings have significant effects on the ecosystem, economy, health, and productivity of the people occupying them; moreover, their environmental impact is not limited to the energy consumption for heating, cooling, moving, and lighting, but it affects many other factors, including above all the relationship with the territory. Considering these premises, this research focused on suggesting sustainable guidelines in Italy by trying to identify what has changed in the methods of residential construction, especially in order to meet new environmental and people’s requests. The research purpose is to focus on the concept of property value, trying to identify some guidelines that increase the value of housing according to the mutated market requests observed by a representative sample of real estate agents. As a result, a new property concept aimed at high quality and sustainability standards, co-housing, and dynamic scenarios pushed up by the increasing demand from new generations, such as single, high-educated young workers and university students, lead us to explore the solution of short-term rents in the Italian territory. This solution appears in a real estate market heavily affected by the economic crisis, and is a good alternative for owners or landlords, which is able to guarantee a positive return on investment and to assure a major capability to keep value in the long term.

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