Credit Crunch and Its Impact on Real Estate

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ACKNOWLEDGEMENT

I want to take the opportunity to say thanks to my research supervisor, family and friends for their support and guidance as without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The recent crisis in world credit markets has rocked the real-estate sector. Since the problem has been structured financial products in the U.S. real estate the subprime loan market, business analysts look and ask how and when the credit market crisis will hit next. The crisis has revealed a very negative effect on personal real estate and banks that gave loans, resulting in commitments of frozen or loan to be negotiated, and in severe cases, forced sales. Impacts of the crisis can be seen in some parts of the country. Updating and continuing concern about the possible effects of the economic crisis in the U.S. in global markets in real estate is strictly observed by many people. In times of stability, real estate investors are looking for suitable alternatives. Main assets of the funds are used reserves in broad money to buy shares of companies and assets, and this should have a limited effect in protecting real estate markets in particular.

Table of Content

Table of Contents

Credit Crunch and Its Impact on Real Estatei

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

Background of the research1

Problem Statement1

Rationale1

Significance2

Research Question2

Theoretical Frame work2

What started the crises?4

How the credit crunch in the market?4

CHAPTER 3: METHODOLOGY6

Research Design6

Literature Search6

Keywords6

REFERENCES7

CHAPTER 1: INTRODUCTION

Background of the research

International older people do not need to use the debt free witness the joy and real estate assets are worth and give high performance. Moreover, investment activity will slow down gradually all during this time and these people will probably decide to real estate for unsecured creditors are able to begin working through their financing channels.

Problem Statement

The recent crisis in global credit markets has rocked the real estate sector. Since the problem arrived from the product structure of the real estate finance in the U.S. market for subprime mortgages, real estate analysts to study and ask how and when the credit market crisis will hit next. The crisis has obviously had a negative impact on real estate to meet people, and the financial institution that issued the loan, give credit to a negotiated compromise to freeze again, and in severe cases, forced sale.

Rationale

Effects of the Great Depression can be seen in some areas of the country. Updating and ongoing concern about the possible effects of an economic issue in the U.S. in global markets in real estate is strictly followed by many people. In times of stability, real estate investors are looking for more options. Main rich funds used their huge reserves of cash for the shares and assets, and this should ...