14 Oct Word limit: 900 wordsWe need to talk about?Rental crisis increases in rents?Increase in the cost of daily livingSuffering of youngsters in buying a houseIssues in managing family budgetReduc
SOC328 2020 projects
Acute Rheumatic Fever & Heart Disease Infographic: https://drive.google.com/file/d/12vPgJ1-2JbFpEzbdxwF4DZzxWVvwFX6I/view?usp=sharing
Appropriation and commercialisation of Indigenous cultural and intellectual property: https://issuu.com/meganohea/docs/soc328_20project
Asianvoices.au: https://www.instagram.com/asianvoices.au/
Break free through employment: https://img1.wsimg.com/blobby/go/8b89a301-3b8c-40c0-ba71-bb564de337c4/downloads/FINALLLL%20PDF.pdf?ver=1605244535515
Made available at this link: https://breakfreethroughemploymentfeed.godaddysites.com/
Emotional Abuse and Child Well-Being: https://drive.google.com/file/d/1z_K4OEU53jl4zAuOjBggxq-066rLnk70/view?usp=sharing
Guide to Free and Low Cost Services: https://drive.google.com/file/d/1mAFQaCeGDaXS4ZljuPTnKkJXx0G84wTP/view?usp=sharing
Indirect Racism in Australia: Repercussions on Indigenous Identity Expression: https://drive.google.com/file/d/1P4CMoZYEAgzBnwMGcRuCmdPTXidiiaWB/view (may require download [top right of screen] if it doesn’t play in browser)
Migrant Women in Care Work: A bi-national comparative analysis: https://youtu.be/2CEWWp-wsCQ
Pandenizens: https://ninetaelahs.wixsite.com/pandenizens
Queering Skate Media: https://drive.google.com/file/d/1RqaIUbIZNHoNOmyJmn5Yl0hLVBU4KVAU/view?usp=sharing (may require download [top right of screen] if it doesn’t play in browser)
The impacts of poverty on educational outcomes within Australia: https://drive.google.com/file/d/1NBS89Pl8qLu0K2xHOUCt13fU87DDM58Q/view?usp=sharing
The Scrutiny of Body Image in Young Female Athletes: https://www.youtube.com/watch?v=or6pxxvjTFc
Whiteness within universities and racial literacy: https://drive.google.com/file/d/1qNdyr5xRz4mKbVqf5mTKMXwwcP0T2D4R/view (may require download [top right of screen] if it doesn’t play in browser)
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SOC 328 Doing Sociology (Capstone)
Assessment 3: Project
50% of final Grade
(35% for project, 15% for class participation including padlets, informal pitches, and showcase presentation)
Instructions:
1. Use this project design template from Week 1 onwards to start thinking and working out your project ideas, design, format and expected benefits
2. Populate this template with short summary of Assessment 1 and 2 as these earlier assessments work as scaffolding for the project
3. You may be asked to report/present on your progress during the session using this template.
Project Design Template
Working Title:
Background:
Problem:
Aims:
Sociological perspective:
Research Questions:
Literature review:
Methodological considerations:
Ethical considerations:
Format:
Audience:
Expected benefits:
Marking Rubric
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HD |
D |
C |
P |
F |
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· Clear organisation and coherent presentation structure · Good alignment and fit of project to problem area · Rigorous research effort and critical reading around the topic · Effective justification of project format and audience targeting · Creative project design and competent execution · Well written exposition · Meaningful responses to identified problem |
SOC 328 – Spring Session 2022 University of Wollongong – Faculty of the Arts, Social Sciences and Humanities
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SOC328 Project assessment rubric 2022
• Clear organisation and coherent presentation structure
The project is presented effectively for its target audience and there is evident care and thought in the organisation and arrangement of the material making up the project and exposition
• Good alignment and fit of project to problem area
The project ‘speaks’ effectively to the identified problem and is of an appropriate scope
• Rigorous research effort and critical reading around the topic
The project and its exposition demonstrate robust engagement with sociological research on the project topic
• Effective justification of project format and audience targeting
The exposition includes a sound rationale justifying audience selection and describing how project format is tailored to audience
• Creative project design and competent execution
The project is designed and executed to a high standard of quality and shows evidence of creativity, imagination and care in its design
• Well written exposition
The exposition is clearly structured, well-written, and appropriately cited
• Meaningful responses to identified problem
The project and exposition make a substantive response to the identified problem, both sociologically in the exposition and in terms of their address to the target audience in the project.
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INTEREST RATES CHANGES AND PROPERTY OWNERSHIP 2
RENJU PETER
6587690
INTEREST RATES CHANGES, AND PROPERTY OWNERSHIP
Introduction
Many issues affect how property will be owned. Some of these issues revolve the
interest charges and how people in the economy use the present economic
conditions to own properties. The information below will describe the problem
statement that will be used concerning interest rates.
Problem Statement
Interest rates are the number one element in business operations that affect how the
business will be operated. The macroeconomic factors have had a hand in
transforming operations within how property will be owned based on the people's
amount of cash. Several factors go hand in hand with the transformation and
changes within the system. Risk should not be underrated in mortgage financing
(Blanchard 2019). A number of costs need to be factored in when taking mortgage
financing. In most circumstances, mortgage financing is a long-term loan expected to
consume much of the interest rate as attributed to forces in inflation, legislation, and
changes in interest rates by fiscal and monetary policy. In the economic recession of
2008, there were several elements concerning the risk identified by the federal
reserves that needed to be addressed (Altavilla, Boucinha & Peydró, 2018).
INTEREST RATES CHANGES AND PROPERTY OWNERSHIP 3
Blanchard (2019) describes issues concerning the cash value that changes daily. In
most occurrences, the value of a property in the present moment is not the same in
the future, and in most occurrences, the value is always high. People will always
want to invest their monies in platforms that add value to their investments
(Dornbusch, 2019). As for property ownership, the high-interest costs are attributed
to inflationary changes and the future value of cash. More importantly, banks and
other lending institutions find it extremely hard to place investments or stocks on
platforms that do not add value to their stocks (Jarociński & Karadi, 2020). When
making mortgage financing, it is prudent that one understands the policies behind
the interest rate changes, which will guide persons wishing to take up credit.
There are several factors to consider before making any investment decision in
property ownership. One has considered the budget constraints that each party has
to bear. One has to look at the income over expenses and the proportion of the
income that can be used to finance the mortgage (Dornbusch, 2019). In most cases,
some people do not make calculated expenditures and forecast growth in
expenditure as there are several unforeseen expenses in the present times. In light
of this, budgeting is an essential tool for property ownership through mortgage as
one has to consider whether they can pay the principal and the interest amounts
(Sovbetov, 2018). Moreover, there are instances where the income may reduce or
increase in the future. This speculation has to be considered as it will go hand in
hand with the interest rate that will be charged and will measure how one can afford
to live within their means while paying for the mortgage (Fornaro & Wolf, 2020).
The agreement payment plan should also be factored in all elements of the budget
as there are some tools and dimensions in which property owners default on their
loans and are forcefully evicted from their households. There are ways and means
INTEREST RATES CHANGES AND PROPERTY OWNERSHIP 4
through which operations are looked into and will affect how one can pay back their
mortgage. When the interest rates are incredibly high, loanees are advised to take
up long-term loans that will enable them to service the loans quickly (Jarociński &
Karadi, 2020). This will also help them make operations smooth and meet
unforeseeable future expenses. When the interest rates are low, it is prudent for
loanees to take up short-term loans that they will quickly pay.
One has also to consider the opportunity cost of the property. In most instances,
some mortgages end up being losses to the homeowners instead of assets. Some
potential investors have taken up loans and invested the loans in assets that
generate income. These assets can finance the debt at the interest rate charged,
and the loanees can also afford to take up mortgages based on the transactions they
have been undertaking from the business. Before undertaking a contract to take up a
loan, the loanee needs to look into the insurance coverage. Some insurance costs
are so high that they result in high loan interest rates. In most instances, bankers
and lending institutions will look into the level of insurance offered for some
properties. If the insurance coverage is too high, the loans will be extremely high
(Altavilla, Boucinha & Peydró, 2018). The systems under which a loan is written and
approved need to be systematic such that all interested parties will have the chance
to attain their objective. Bankers will look to earn from the interest revenue from the
loans. The loanee is seeking to own a property through a mortgage. The government
is seeking to tax all operations from the loanee to the buyer and the seller.
The size of the property will also affect how the loans will be undertaken. Some
properties are in premium soils, and the banks and other financing institutions will
charge higher interest charges on them (Fornaro & Wolf, 2020). On the other hand,
some houses built on undervalued lands may have lower interest rates.
INTEREST RATES CHANGES AND PROPERTY OWNERSHIP 5
One factor pushing people towards owning property is the freedom that comes from
owning property. Many people find it expensive to pay out rent and leases on
property they will not fully own. Land is a minimal resource that, when appropriately
appraised, changes macroeconomic factors such as interest rates. Elements such as
valuation, appreciation, and discounts are brought in, which affect how land is valued
at the moment in comparison to the future value of the land.
Conclusion
Several elements bring about changes in interest rates. In light of these events, it is
prudent for any party wishing to advance or change its operations to look into some
aspects that may bring about change in the interest rates. This will increase their
familiarity with interest rates and how it is a contributing factors to owning property.
INTEREST RATES CHANGES AND PROPERTY OWNERSHIP 6
References
Altavilla, C., Boucinha, M., & Peydró, J. L. (2018). Monetary policy and bank
profitability in a low interest rate environment. Economic Policy, 33(96), 531-
586.
Blanchard, O. (2019). Public debt and low interest rates. American Economic
Review, 109(4), 1197-1229.
Dornbusch, R. (2019). The theory of flexible exchange rate regimes and
macroeconomic policy. In Flexible Exchange Rates and Stabilization
Policy (pp. 123-143). Routledge.
Fornaro, L., & Wolf, M. (2020). Covid-19 coronavirus and macroeconomic policy.
Jarociński, M., & Karadi, P. (2020). Deconstructing monetary policy surprises—the
role of information shocks. American Economic Journal:
Macroeconomics, 12(2), 1-43.
Sovbetov, Y. (2018). Factors influencing cryptocurrency prices: Evidence from
bitcoin, ethereum, dash, litcoin, and monero. Journal of Economics and
Financial Analysis, 2(2), 1-27.
,
Interest Rates Changes and Property Ownership 1
RENJU PETER
6587690
Changes in Interest Rates and the Influence on Renting and Buying Properties
Sociology Concepts and their Applications
Different sociological concepts deal with the understanding of human behavior
and the whole society. It is applied to understanding social and human cognition. The
unit of sociology analysis ranges from the individual level to a large group of persons.
Sociology is divided into structural functionalism, conflict perspective, and symbolic
interactionism (Johnson, 2022).
According to structural functionalism, society is viewed as a vast network of
interconnected pieces that function harmoniously. This strategy emphasizes the
significance of the social structure or any generally consistent social activity pattern.
Second, this method considers how any structure affects society as a whole and how
any social pattern affects that operation (Dillon, 2020). For example, the changes in
interest rates affect society in terms of buying or renting properties.
Interest Rates Changes and Property Ownership 2
Symbolic interactionism is seen as a micro-level strategy or individual strategy. In
symbolic interaction, society is seen as a drama or ongoing event that is constantly
evolving.
This method places a lot of emphasis on using symbols to communicate and exchange
ideas. According to this theory, society consists solely of the reality that individuals
create for themselves via their interactions with one another (Dillon, 2020). For
example, when you hear the word dog, your brain brings a picture of a four-legged
canine.
Last but not least, the conflict method is regarded as a macro-level strategy that
emphasizes inequity. In society, resources are distributed inequitably so that a minority
benefits at the expense of the majority. Conflict arises in a community due to the
unequal distribution of wanted resources. Those with the means create systems and
procedures to preserve these resources. This perspective sees society as being
constantly at war because those who lack resources are constantly coming up with new
ways to acquire them (Dillon, 2020). For example, employer always wish to pays as little
as possible for labor, while the employe wish to maximize their salaries.
Changes in Interest Rates
Lending money comes with a fees called an interest rate. Alternately, it might be
the payment for the risks and services involved in lending money. The situations
stimulate borrowing, lending, and spending, which keeps the economy running.
However, market interest rates always fluctuate, and various loan kinds offers different
Interest Rates Changes and Property Ownership 3 interest rates. Some of the factors in society that cause change in interest rate are the
lenders and borrowers, the type of loans, etc.
The Level of Risk
The possibility of the debt being repaid is referred to as the risk. Higher interest
levels result from a larger likelihood that the loan won't be repaid. The interest rate will
likely be lower if the loan is "secured," that is, if there is some kind of collateral that the
lender will be able to seize if the loan is not repaid, for example, a car, This is so
because the collateral covers the risk factor.
Secondly, there may be little to no loss on principle loaned out for some loans
that may be easily turned back into cash. Generally speaking, these loans have lower
interest rates. Since the government is the borrower, there is naturally less risk
associated with government-issued debt securities. The rate on Treasury securities is
often low due to this, plus the fact that the interest is tax-free.
Risk is affected by time as well. Long-term loans are more likely to go unpaid
since the adversity that causes default can develop over a longer period. Additionally,
lengthy Finally, a loan's face value is much more susceptible to inflationary impacts than
a short-term loan is. Therefore, the lender should be compensated with greater interest
the lengthy the borrower has to repay the loan.
The Level of Demand and Supply
The supply and demand of credit affect interest rates level; higher or lower
demands for credit will result in higher or lower interest rate, respectively. In contrast,
the highest credit availability will result in lower interest rate, while a lowest credit
Interest Rates Changes and Property Ownership 4 availability will result in higher rate. Lenders' decisions to postpone loan repayment
result in a reduced amount of credit accessible to the economy.
The Government
The interest rates that banks set on the money they lend is influenced by the
federal fund rates or the price that institutions charges one another for extremely short-
term loans. Later, other short-term loan rates will gradually be influenced by that rate
(Kuang et al., 2019).
When the government purchase additional securities, bank receives an influx of money
that exceeds what they can use for lending, which lower interest rate. When the
government sell securities, bank funds are diverted for the transactions, leaving them
with less money available for lending, which forces an increase in interest rate (Jareno
et al., 2019).
Inflation
Interest rate levels will also be impacted by inflation. Interest rates are more likely
to increase the highest the inflation rate. It happens because lenders will demand higher
interest rates to make up for the declining purchase value of the money they will
eventually be paid (Jareno et al., 2019).
Effect of Interest Rates on the Ability to Buy or Rent Property
Capital Flow
Interest rates have a big impact on mortgage rates and funding expenses, which
impacts costs at the individual property level and, consequently, values.
Interest Rates Changes and Property Ownership 5 The largest influence on necessary rates of return and investment prices, however,
comes from the supply and demand for capital as well as competing investments.
The Federal Reserve Committee's policies have directly impacted the value of all
investments. It has shifted its emphasis away from monetary policy and toward
regulating interest rate to boost the economy or ward off inflation (Sommer & Sullivan,
2018).
Interbank exchange rates are falling, which lowers the cost of funds and allows
more money to enter the system. The availability of funds, on the other hand, declines
as rates increase. Regarding real estates, the variations in interbank lending rates may
increase or decrease the available cash for investments. Demand and supply, or the
quantity of money available for real estate purchase and developments, are influenced
by the amount of capital and value (Sommer & Sullivan, 2018).
Valuation Fundamentals
The supply and demands for home, as well as the expense of building new
homes, all have an impact on real estate values. However, there’s more to evaluate
than that, particularly while considering how the government controls interest rates,
capital flows, and financing costs.
Discount Rates
Discount rates will alter as change in the interest rates that makes them up,
whereas risk premiums vary as a function of supply and demand and other market risk
factors. Real estate values decrease when the needed returns on alternatives or rival
Interest Rates Changes and Property Ownership 6 investments grow; in contrast, prices rise when interest rates decrease (Forrest, Murie &
Williams, 2021).
References
Dillon, M. (2020). Introduction to sociological theory: Theorists, concepts, and their applicability to
the twenty-first century. John Wiley & Sons.
Forrest, R., Murie, A., & Williams, P. (2021). Home ownership: Differentiation and fragmentation.
Routledge.
Johnson, D. P. (2022). Contemporary sociological theory: An integrated multi-level approach.
Springer Science & Business Media.
Jareño, Francisco, Marta Tolentino, María D. González, and Alejandro Oliver. "Impact of changes in the
level, slope and curvature of interest rates on U.S. sector returns: an asymmetric nonlinear
cointegration approach." Economic Research-Ekonomska Istraživanja 32, no. 1 (2019), 1275-1297.
doi:10.1080/1331677x.2019.1632726.
Kuang, W.,
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