Business Research Report: House Prices and Lower Income Earners

This business research report investigates the impact of rising house prices on lower-income earners in Sydney, Australia. The research aims to analyze the socio-economic situation, identify factors affecting house prices, and determine the impact on low-income individuals. The report includes a lite...Read More

Running Head: BUSINESS RESEARCH
BUSINESS RESEARCH

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Table of Contents
1. Introduction.......................................................................................................................................3
3. Project Scope.....................................................................................................................................3
4. Literature Review..............................................................................................................................4
Summary of Assignment 1................................................................................................................4
Research justification........................................................................................................................5
Literature review gap and opportunity...............................................................................................5
5. Research Questions/Hypothesis.........................................................................................................5
6. Research Design and Methodology...................................................................................................5
Qualitative research...........................................................................................................................6
Quantitative research.........................................................................................................................8
7. Research limitation..........................................................................................................................10
8. Research Time plan.........................................................................................................................10
9. Conclusion.......................................................................................................................................11
10. References.....................................................................................................................................11
11. Appendix.......................................................................................................................................14
Research Plan..................................................................................................................................14

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1. Introduction
House is the basic requirement of individuals. In Australia, 70% of Australian has their own
house while 28% of Australians are living in the rented house. Further, housing plays a key
role in evaluating the gross domestic product of nation. In current scenario, houses prices
have continued enhanced in the Australia that impact on the growth of economy. On behalf of
BIS Shrapnel, prices of houses are increased by 19% as it would influence growth of country
(Kumhof, et al., 2015). The enhancement in the prices of housing could directly influence
both economic and social situation of people especially the lower income individuals. This
paper mainly discusses the impact of increasing house prices on the lower income people.
2. Project Objective
The main aim of this research is to address impacts of rising prices of houses on lower
income earners of Sydney. The investigators will use following objectives for attainment of
the aim:
 To analyse situation of socio and economic of Sydney
 To investigate factors that affect the prices of houses in Sydney
 To determine the higher rate of housing on the lower income earners of the Sydney
3. Project Scope
This section supports to gain the understanding of researcher about impact of rising in house
prices on the lower income people of Sydney. This report aid the researcher to improve their
existing information about certain areas like situation of Sydney, affordability of price,
situation of economic and social on the citizen, higher price impact on the lower income
earners. This project could also be imperative in case research scholar wants to make their
career in the economic field. It will aid the researcher to successfully conduct their research

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and obtain their valid and reliable result.
4. Literature Review
Summary of Assignment 1
It can also be summarized that Sydney makes 54,801 indigenous heritages in which most of
individuals belonging to Germans, Scottish, Chinese, British, and Irish immigrants. Sidney
always hosts many festivals in their country that makes them leading country at the national
level. On behalf of GRP Sydney, 70% of GSP (gross state product) was estimated in 2015. In
addition, it is also found that the growth rate of GSP has been enhanced by 2.7% as compare
to the last three years (O'connor, 2017). It could direct impact on the enhancement of the
prices of house. In addition, it is also found that real estate organizations give their 3.7% of
contribution in the enhancement of economy development.
A large number of Australian living in their self-contained private houses as it demonstrates
their preference towards home. In addition, it is also analysed that people of Sydney invest
their more than 50% of income in the housing. It is also analysed that Sydney is third
expensive country with regards to the housing (Stockhammer, 2015). It can also be concluded
that the prices of housing is increased due the continued enhancement in the foreign
investment. The higher foreign investment could increase the demand of residential market as
it would enhance directly impact on the prices of houses.
The changes in the prices of houses could directly influence the social and social condition of
the people. It could influence the standard of living, unemployment level, higher insecurity,
inequality, and demand of loan. It can also be concluded that standard of living demonstrates
the consumption level of individuals towards quality and expensive products and services
(Bricker, et al., 2017). The standard of living could also be determined as the flow of cash-
income for consuming needed goods and services.

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In Australia, the stand of living could be determined as ownership and accommodation of
house. It is also found that enhancement in prices of houses could make inequality in the high
and low income people. It is because, low income earners could be determined as the poor
living standard in Australia. In addition, it is also found that the lower income earned spend
their 30% of income to pay rent on the housing that could be very costly. Thus, it is also
analysed that the enhancement in house price could direct impact on the business growth and
economic condition (Favilukis, et al., 2017).
Research justification
In Sydney, it is essential for persons of Sydney to have their own houses as it shows their
standard of living. It could also be imperative for making unique image among people of
Sydney. Hence, it could be effective for the government to initiate the business owner for
stating new business as it could support to enhance the economic and socio condition of
country.
Literature review gap and opportunity
Under this literature review, research would be facilitated to gain their understanding towards
the impact of higher housing price on the lower income earner of Sydney. It could also
support to comprehend the factors that may enhance the process of houses of Sydney. It could
also support to understand the social and economic condition of Sydney due to analysing the
cause of enhancement in the prices of house. In this, researcher has selected few individuals
to conduct their researcher because of lack of people are interested in the research.
5. Research Questions/Hypothesis
 What is the situation of socio and economic situation of the Sydney?
 Which factors could affect the prices of houses in Sydney?
 How rising prices of houses impact on the citizen of Sydney?

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6. Research Design and Methodology
The research methodology helps research scholar to select appropriate data collection method
as it would be effective for addressing the research problem (Panayotou, 2016). There are
certain methods that could be considered by researcher like qualitative and quantitative
research.
Qualitative research
Chart 1: Qualitative research process
(Sources: Diamond, 2016).
The qualitative research could include many stages like research planning, recruitment,
screening criteria, and final report. In the starting, investigator could discover the data about
impact of rising in prices of house on the lower income earner in Australia and make
effective plan for operating their research (Diamond, 2016). Later, organization could
broadcast the criteria of recruitment for functioning the research procedure. Afterward,
researcher could develop the discussion guide and home task to match research aim and
objectives. Subsequently, researcher has focused on the group for making final report by
concluding the home work findings (Saez and Zucman, 2016).
Approaches to reliability and Validity

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Investigator has used the inductive approach to meet study requirements and get trustworthy
result. Inductive method facilitates to obtain hypothetical evidence towards the research
concern. While, deductive approach enables the research scholar to create the hypothesis on
behalf of research matter. The research matter is subjective in nature hence the inductive
approach would be effective rather than deductive approach (Acemoglu, et al., 2016).
Sampling and Sample Size
Sampling method could support the investigator to select suitable size of sample from
targeted people. It would also support the research scholar for performing their research and
enhance the reliability of research outcome. Non-probability sampling technique will be
practised by researcher to operate their research and obtain reliable research outcome
(Tietenberg, and Lewis, 2016). Through non-probability sampling technique, investigator
would be capable for selecting their participants on behalf of gender, age, race, income, and
education. In addition, it can also be analysed that that non-probability sampling technique
could generate partialities in the research that could influence the quality of research
outcome. For completing this research, 7 managers are selected from different banks of
Australia to conduct their research and obtain positive outcome. It would support to examine
the impact of rising prices of houses on the lower income people of Sydney (Taylor, et al.,
2015).
Data Collection Method
The primary data collection method will be executed by investigator to get data with respect
to current research matter. The primary data collection method could also help to obtain valid
and reliable result about study matter. The primary data collection method considers survey
through questionnaire to gather actual facts about current research issues. Moreover, it is also
examined that this method could help to get reliable information from the specified sample
size (Mackey and Gass, 2015).

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Variables Specifications
In the research study, dependent and independent variables are included. In this, the
independent variable is higher rate of hose while income of people is dependent variable.
Quantitative research
Chart 1: Quantitative research process
(Sources: Silverman, 2016)
Initially, researcher discovers the issue of research for conducting the study. Afterward,
research scholar creates hypothesis and research questions as well as creating literature
scholar to select appropriate sample size and conduct their research successfully. Moreover,
ethical norms could be effective to conduct appropriate behaviour during the research. Later,
research scholar has used many data collection method to complete their research and obtain
reliable result. The research scholar would prepare a budget plan for accomplishing the
objectives and aim of research scholar to obtain reliable data (Silverman, 2016).
Research Instrument

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The research scholar has used secondary data collection technique will be practised by
research scholar to gather conceptual knowledge towards current investigation matter. There
are many methods that could be used by investigators like government publication, offline
and online websites, annual report, and academic journal (Smith, 2015). This tool is used by
investigator to get higher advantages. It will also aid the research scholar to get valid and
reliable result.
Quantitative Data Analysis Process
Chart 1: Quantitative data analysis process
(Sources: Humphries, 2017).
Initial, researcher would make a plan about information of research issue. Later, investigator
could record the information and evaluate them accordingly. Ms-excel software will be
practised by researcher to present their collected facts through graphs, column chart, pie
chart, and bar chart. After the completion of data collection, researchers would interoperate
the collected data and obtain reliable result in the context of current research concern
(Humphries, 2017).
Sampling and Sample Size
The probability sampling method could be appropriate for completing this research because it
enables the investigator to select research candidates to conduct the survey through
questionnaire and obtain reliable result. Through this, researcher could randomly select the

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participants and conduct their research. Consequently, it will also support to obtain reliable
outcome. For this, researcher has selected 65 lower income earners of Australia (Taylor, et
al., 2015).
Reliability and Validity of Data
Validity is supportive to evaluate the feasibility of research as it could be perform by
considering the quantitative data. But at the same time, it can also be examined that the
reliability approach will help to evaluate the research outcome trustworthiness.
7. Research limitation
There are many components that could impact on the quality of research outcome such as
time, resources, and cost (Sá, 2015). The lack of resources could create the complexity for
the researcher to complete their task and obtain reliable outcome (Silverman, 2016). Research
scholar could also be responsible for securing confidential data of research participants. In
addition, it is also addressed that the primary data collection method could take higher time
than the secondary data collection method. It could decline superiority of investigation result
(Mackey, and Gass, 2015).
8. Research Time plan
The research time plan could help to evaluate time for research activity completion. The
following table shows time frame for current research:
Research Activities Estimated for research deeds completion
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Design current research matter
Development of research
hypothesis, aim and objectives
Data collection method selection

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Design of Questionnaire Design
Chose appropriate sample size
and sampling method
Development of data analysis
Final draft
Report submission
9. Conclusion
From the above analysis, it can also be concluded that enhancement in the price of house
could create inequality among high income earner and low income earner. It can also
conclude that qualitative research design and quantitative research design could support to
eliminate the disadvantages of both methods. It can also be illustrated that the qualitative
research research design could support an investigator to obtain theoretic statistics in context
of the current investigation subject while quantitative data collective technique enables to
attain numerical information in the context of research concern. It can also be summarized
that house could be basic need of individual but in Australia housing has been more
important than other needs. It demonstrates the status level and income level of individuals.
The higher demand of house and lower demand of supply could direct impact on the prices of
house. It can also be summarized that the higher demand of land of investors could also
negative impact on the lower income earners to purchase house.

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10. References
Acemoglu, D., Autor, D., Dorn, D., Hanson, G.H. and Price, B., 2016. Import competition
and the great US employment sag of the 2000s. Journal of Labor Economics, 34(S1), pp.
141-198.
Bricker, J., Dettling, L.J., Henriques, A., Hsu, J.W., Jacobs, L., Moore, K.B., Pack, S.,
Sabelhaus, J., Thompson, J. and Windle, R.A., 2017. Changes in US Family Finances from
2013 to 2016: Evidence from the Survey of Consumer Finances. Fed. Res. Bull., 103, p.1.
Diamond, R., 2016. The determinants and welfare implications of us workers' diverging
location choices by skill: 1980-2000. American Economic Review, 106(3), pp.479-524.
Favilukis, J., Ludvigson, S.C. and Van Nieuwerburgh, S., 2017. The macroeconomic effects
of housing wealth, housing finance, and limited risk sharing in general equilibrium. Journal
of Political Economy, 125(1), pp.140-223.
Humphries, B., 2017. Re-thinking social research: anti-discriminatory approaches in
research methodology. USA: Taylor & Francis.
Kumhof, M., Rancière, R. and Winant, P., 2015. Inequality, leverage, and crises. American
Economic Review, 105(3), pp.1217-45.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. UK:
Routledge.
O'connor, J., 2017. The fiscal crisis of the state. UK: Routledge.
Panayotou, T., 2016. Economic growth and the environment. The environment in
anthropology, pp.140-148.
Sá, F., 2015. Immigration and House Prices in the UK. The Economic Journal, 125(587),
pp.1393-1424.
Saez, E. and Zucman, G., 2016. Wealth inequality in the United States since 1913: Evidence
from capitalized income tax data. The Quarterly Journal of Economics, 131(2), pp.519-578.

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Silverman, D. ed., 2016. Qualitative research. UK: Sage.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. UK:
Sage.
Stockhammer, E., 2015. Rising inequality as a cause of the present crisis. Cambridge Journal
of Economics, 39(3), pp.935-958.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research
methods: A guidebook and resource. USA: John Wiley & Sons.
Tietenberg, T.H. and Lewis, L., 2016. Environmental and natural resource economics. UK:
Routledge.

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11. Appendix
Research Plan
Research Activities Estimated for research deeds completion
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Design current research matter
Development of research
hypothesis, aim and objectives
Data collection method selection
Design of Questionnaire Design
Chose appropriate sample size
and sampling method
Development of data analysis
Final draft
Report submission