Real estate | Jotup

Many Australians face losing their homes right now. Here’s how the government should help

Retrieved on:

tisdag, april 23, 2024

That same principle underpins the HomeKeeper program I proposed in The Conversation last year.

Key Points:

That same principle underpins the HomeKeeper program I proposed in The Conversation last year.
The idea is to help mortgage-stressed owner-occupiers avoid losing their home.
If it’s a good idea for companies, why not for responsible and otherwise financially-viable Australians at risk of losing their homes in a cost-of-living crisis?
Rather, it’s government help through a small equity stake with positive returns for taxpayers when HomeKeeper help is no longer needed.

People need help now

HomeKeeper would be of most help to lower income families who often don’t have a “Bank of Mum and Dad” to help them “over the hump”, as Albanese puts it, during temporary difficulties.
ACT Independent Senator David Pocock backed HomeKeeper last week in his additional comments in the Senate Economics Legislation Committee report on the government’s Help To Buy Bill 2023.
Pocock wants the government’s Help To Buy mechanism amended to enable low- and middle-income earners “facing mortgage repossession and possible homelessness to remain in home ownership” via a HomeKeeper-style program.
Establishing HomeKeeper is more important than ever because the monetary policy script isn’t following the arc politicians and policymakers planned.

Relying on interest rate relief to arrive isn’t enough

Yet interest rates in Australia are not falling.
What’s more, even without further rate increases by the Reserve Bank of Australia (RBA) this year, the average mortgage rate is set to rise anyway according to research by the RBA’s Domestic Markets Department’s Benjamin Ung.
Nearly a third (31.4%) of mortgaged owner-occupiers are “at risk” of mortgage stress according to the latest Roy Morgan survey.
The longer it takes, the more damaging to individuals and families, and the more costly it is to governments.
Albanese is right – sometimes there’s a role for government in providing help to get over that hump.

Chris Wallace is a professor in the University of Canberra's School of Politics Economics & Society, Faculty of Business Government & Law. She has received funding from the Australian Research Council.

How big is the household housing burden? Evidence from the ECB Consumer Expectations Survey

Retrieved on:

tisdag, april 23, 2024

Electricity, Estate (law), Growth, Environment, Consumer confidence index, ECB, Risk, COVID-19, HICP, Housing, Energy, Harvard University, Probability, Need, Real estate

The ECB Consumer Expectations Survey shows that housing cost dynamics vary across households depending on the type of ownership, with the highest cost increases being borne by those who do not own their home outright (mortgage and renter households).

Key Points:

The ECB Consumer Expectations Survey shows that housing cost dynamics vary across households depending on the type of ownership, with the highest cost increases being borne by those who do not own their home outright (mortgage and renter households).
Since 2022 rising housing costs have, on average, largely been offset by growth in household income, leading to stable housing cost to household income ratios.

Housing investment and the user cost of housing in the euro area

Retrieved on:

tisdag, april 23, 2024

Furthermore, we use an empirical model to relate the level of housing investment to the user cost of housing.

Key Points:

Furthermore, we use an empirical model to relate the level of housing investment to the user cost of housing.
This highlights the possibility of further weakness in euro area housing investment, which could persist for some time if there is no significant decline in the user cost of housing.

A new measure of firm-level competition: an application to euro area banks

Retrieved on:

torsdag, april 18, 2024

Glass, RPD, Journal of Economic Perspectives, Goldberg, Employment, Lead, Competition, SCP, Research Papers in Economics, TCF, Intuition, Laboratory, Euromoney, Bank of Canada, Calendar, International political economy, Manufacturing, Oxford Economic Papers, Harvard University Press, Paper, Linearity, R2, Environment, Delicatessen, System, Website, Panzar, Working paper, World Bank, Elzinga, Friends, Madiga, CPB, Investment, Lerner index, Statistics, Croatian National Bank, PDF, Elsevier, ECB, Industrial organization, Policy, Social science, JEL, Operations research, Internet, Journal, Research, Literature, European Central Bank, Journal of Economic Surveys, MRP, Commercial, Section 5, Financial intermediary, Ministry of Social Affairs, Elasticity, National bank, Government, Developed country, Cell, Tarazi, Wealth, Publishing, Springer Nature, Prudential, Marketing, Law, The Economic Journal, Lerner, L16, Business economics, OECD, International Monetary Fund, Section 4, Database, Section 3, Krieger, EMU, Section 2, Pressure, Central bank, Economics Letters, Bank, Jorgenson, Character, Sparkassen-Finanzgruppe, Life, EDS, American Economic Review, K2, Appendix, Applied economics, CEE, Palgrave Macmillan, Livret A, Bell Labs, GDP, Part, Country, Public policy, De Economist, Management, Publication, Motivation, Cooperative, Reproduction, IMF, Edward Elgar Publishing, Housing, Handbook, G21, Real estate

Abstract

Key Points:

Abstract
This paper extends Boone (2008) by introducing a competition measure at the individual
firm level rather than for an entire market segment.
We apply this extended Boone indicator to individual bank-level competition
in the loan market in the four largest euro area countries and Austria.
Our new measure of firm-level competition enriches and complements
other competition measures and provides a promising starting point for future market
power analyses.
The only measure among non-structural measures that is based on the
concept of competition as a process of rivalry is the Boone (2008) indicator.
We introduce
a new performance measure of competition by extending the Boone indicator to the
individual firm level.
Introduction
The ability to reliably measure competition is valuable to researchers, analysts, and
policymakers, especially antitrust authorities, financial supervisors, and central banks.
One broad
category of indicators often used to measure competition are structural competition
measures, such as static concentration measures, and dynamic measures, e.g., entry and
exit rates.
Out of these measures, the only measure based on the
concept of competition as a process of rivalry is the Boone indicator.
This study introduces a new performance measure of competition by extending the
Boone indicator to the individual firm level.
It thus measures the
increase in profits in percent of one percentage point increase in efficiency, with marginal
costs as measure of efficiency.
We extend the theoretical
underpinning of the measurement of competition for the entire market of Boone (2008) by
a new measure of individual firm-level competition.
A concern of the literature is the gap
between the practical application and the theoretical framework of Boone (2008).
We introduce within the same theoretical
framework a new measure of competition on firm level, the MRP.
Our new
measure significantly augments the antitrust evaluative framework by shedding light on
whether a merger results in a less competitive market.
Our novel indicator focuses on
firms? incentives to enhance their relative efficiency, as manifested in the elasticity
between relative profits and efficiency.
However, an inefficient firm that is foreclosed could be more
competitive than the larger efficient firm that relies on its scale economies.
Our new metric of competition unveils
banks? ability to influence their profitability in the short term by cutting costs relative to
their peers.
The new MRP indicator provides the ability to assess the impact
of individual banks? competitiveness on their interest rate-setting behaviour in loan
markets.
Incorporating this information promises a more refined understanding of the impact and
timing of monetary policy rates changes on the real economy.
Section 3 introduces within the Boone
(2008) theoretical framework our new measure of individual firm-level competition,
including the interpretation of the MRP.
Section 4 provides an application of our new
ECB Working Paper Series No 2925
6

individual firm-level competition measure to the loan market.
The StructureConduct-Performance paradigm (SCP) provides a traditional framework in the field of
industrial organization for analysing competition behaviour in markets.
Concentrated
markets ease the possibilities to collude implicitly or explicitly and therefore concentrated
markets result in higher prices and profits.
For example, a tougher competition
setup may lead to a reallocation of market shares, potentially forcing some firms to exit
the market.
This approach gives firms? strategic behaviour
central stage and focuses on the strategic interaction on prices and quantities, known as
conjectural variation.
Another measure from
this strand of literature is the H-statistic developed by Panzar and Rosse (1987).
The only competition measure from this performance literature where competition is the
outcome from a process of rivalry is the Boone indicator.
A continuous and monotonically increasing relationship exists between
RPD and the level of competition if firms are ranked by decreasing efficiency.
(2013) compare the Boone indicator with the price-cost margin
and conclude that the profit elasticity is a more reliable measure of competition.
The high
elasticity of profits to efficiency unequivocally indicates that the high market shares and
therefore high profits are due to high efficiency.
A firm that quickly passes changes to the input prices is seen as a price
taker with little market power.
Indicators of competition tend to measure different phenomenon and may provide
conflicting messages, as reported for European banking by Carbo et al.
Application 2: Test the ?quiet life? and related market structure hypotheses using the
MRP as competition or market structure measure.
Data
Our application to individual bank-level competition in the euro area loan market uses
balance sheet and income statement data from the Moody?s Analytics BankFocus for the
calendar years 2013-2020.
As such, most publications
on competition in the euro area includes the largest four member states.
Due to these restrictions the database was reduced to an unbalanced panel of up to 1862
banks (depending on the year) from five euro area countries.
Application 1: Measure bank competition using MRP
Looking at the distribution of the MRP for individual banks (Fig.
A similar finding for the four largest euro area countries as a group is
reported in Carbo et al.
Application 2: Test of market structure hypotheses using MRP
Our new measure of individual-bank competition can be used to test market structure
theories.
Euro area banks? market power,
lending channel and stability: the effects of negative policy rates, European Central Bank
Working Paper, 2790 (February).
A
new approach to measuring competition in the loan markets of the euro area, Applied
Economics, 43 (23), 3155?3167.
Impact of bank competition on the interest rate pass-through in the euro area, Applied
Economics, 45 (11), 1359?1380.

EBA, EIOPA and ECB set up a joint governance framework for the collaboration on the DPM 2.0 standard

Retrieved on:

torsdag, april 18, 2024

EBA, Central bank, ECB, Committee, 2.0, EIOPA, Pension, Metadata, DPM, European Central Bank, Real estate

EBA, EIOPA and ECB set up a joint governance framework for the collaboration on the DPM 2.0 standard

Key Points:

EBA, EIOPA and ECB set up a joint governance framework for the collaboration on the DPM 2.0 standard
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) set up a Data Point Model (DPM) alliance, establishing a common governance framework for the collaboration on the DPM 2.0 Standard.
Following the publication by the EBA and EIOPA of the DPM 2.0 standard in June 2023, the two ESAs together with the ECB have agreed on the common arrangements that will govern their cooperation on DPM 2.0 (the DPM alliance).
Under the DPM alliance, the EBA, EIOPA and ECB will together govern the DPM 2.0 standard and cooperate in the DPM methodology for modelling reporting requirements, the metamodel used for populating the reporting requirements and the associated documentation.
The DPM alliance is established through a Memorandum of Understanding that was signed by the EBA, ECB, and EIOPA.

EQS-News: Supervisory Board appoints Dr Christian Ricken as new CEO – Jochen Klösges to leave Aareal Bank Group

Retrieved on:

onsdag, april 10, 2024

Deutsche Bank, Real estate, Supervisory board, CFO, Commercial property, Aareal Bank, Business development, University, Software, Commercial, Asset management, International business, LBBW, Treasury, Financial institution, Market

Therefore, the Supervisory Board appointed Dr Christian Ricken as new Chief Executive Officer of Aareal Bank AG from 1 August 2024, subject to customary approvals by the supervisory authority.

Key Points:

Therefore, the Supervisory Board appointed Dr Christian Ricken as new Chief Executive Officer of Aareal Bank AG from 1 August 2024, subject to customary approvals by the supervisory authority.
Dr Christian Ricken had also been a member of the Group Executive Committee of Deutsche Bank for several years before joining the Board of Managing Directors of LBBW in 2017.
Aareal Bank AG’s Chairman of the Supervisory Board, Jean Pierre Mustier, said: “I am very pleased to welcome Christian Ricken as a new leader for Aareal Bank Group.
I’d also like to thank Jochen Klösges on behalf of the entire Supervisory Board for his strong and successful leadership, also in very challenging times.

EQS-News: HHLA continues future-oriented investments despite challenging conditions

Retrieved on:

onsdag, april 10, 2024

Annual, Real estate, Growth, Supervisory board, Port of Hamburg, TK, Speicherstadt, TEU, Policy, Transport, Container, Investment, Intermodal transport, Depreciation, Port, HHLA, Intermodal freight transport

CEO Angela Titzrath: “In a challenging market environment, HHLA is continuing to pursue its forward-looking investments to modernise its terminals and expand its European network.”

Key Points:

CEO Angela Titzrath: “In a challenging market environment, HHLA is continuing to pursue its forward-looking investments to modernise its terminals and expand its European network.”
Hamburger Hafen und Logistik AG (HHLA) recorded a drop in revenue and earnings in the 2023 financial year.
Angela Titzrath, HHLA’s Chief Executive Officer: “In light of the extremely difficult conditions for global trade, HHLA has performed well in 2023, particularly in comparison to its major competitors.
The notable increase in throughput volumes at the multi-function terminal HHLA PLT Italy was unable to offset this shortfall.
HHLA therefore continues to pursue its dividend policy of distributing between 50 and 70 percent, where possible, of the Port Logistics subgroup’s relevant net profit for the year to its shareholders.

Q&A on Real Estate Credit Investments (RECI): Conservative accounting at play

Retrieved on:

onsdag, april 10, 2024

COVID-19, LON, Interview, Hardman & Co., Real estate

Real Estate Credit Investments (LON:RECI) is the topic of conversation when Mark Thomas, analyst at Hardman & Co, joins DirectorsTalk Interviews.

Key Points:

Real Estate Credit Investments (LON:RECI) is the topic of conversation when Mark Thomas, analyst at Hardman & Co, joins DirectorsTalk Interviews.
In this interview, Mark gives an overview of his latest report entitled ‘ French and German exposures in perspective ’.
Real Estate Credit Investments is a specialist investor in UK and European real estate credit markets with a focus on fundamental credit and value.
If you are interested in meeting the company, you can register your interest here .

Texas Start-Up, Fifsee Inc., Launches Innovative Real Estate Platform, Redefining Direct Transactions Without Requiring Realtors

Retrieved on:

onsdag, april 3, 2024

Growth, V. Sriram, Real estate

Designed to transform the traditional real estate landscape, Fifsee facilitates direct transactions between property buyers, sellers, renters, and real estate businesses, eliminating the need for intermediaries and delivering substantial cost savings to users.

Key Points:

Designed to transform the traditional real estate landscape, Fifsee facilitates direct transactions between property buyers, sellers, renters, and real estate businesses, eliminating the need for intermediaries and delivering substantial cost savings to users.
The Fifsee platform offers a streamlined approach to real estate transactions by connecting users directly, thereby eliminating realtor commissions and providing a more efficient and cost-effective experience.
In addition to empowering individual users, Fifsee also provides a collaborative ecosystem for real estate businesses and professionals.
This launch marks a significant milestone for Fifsee Inc. and sets the stage for the future of real estate transactions."

Prive Market Sells Beverly Hills Luxury Estate for $68 Million, Cementing Its Position as a Leader in Luxury Real Estate

Retrieved on:

måndag, mars 25, 2024

Privacy, Sale, Real estate

This sale not only highlights the platform's rapid ascent in the high-end real estate market but also underscores its unique position as a purveyor of the world's most exclusive properties.

Key Points:

This sale not only highlights the platform's rapid ascent in the high-end real estate market but also underscores its unique position as a purveyor of the world's most exclusive properties.
Privé Market's success is rooted in its ability to blend unparalleled luxury with unmatched service, providing a seamless experience for both buyers and sellers of high-end real estate.
To view an enhanced version of this graphic, please visit:
The $68 million estate, nestled in the coveted landscapes of Beverly Hills, represents the pinnacle of luxury living.
As it builds on its impressive achievements, Privé Market remains committed to redefining the landscape of luxury real estate, ensuring privacy, exclusivity, and unparalleled service for every transaction.