In modern market economies residential real estate prices, price shifts and their correlations with macroeconomic factors are surveyed quite frequently. However, in contrast with the wide scope of foreign examples, so far existing analyses in Hungary have ignored examining relation and extensity of macroeconomic indicators and failed to examine... their effect on real estate pricing. The scope of this survey is to highlight these potential correlations and thus develop new aspects of analysis. Although the examination needs further extension both in time and space, the results of this survey may help to understand the importance of the responsible management of the most precious element of national wealth from the perspective of sustainable rural development.
Based on my preliminary results, there exists a strong correlation between the number of inhabitants of a settlement and the average real estate prices. Nevertheless, the correlation seems to be significant only for cities. In the case of smaller settlements the correlation still exists but at a lower level. As opposed to the results of former publications and my own expectations, no direct link could be tackled between the amount of income tax paid by private individuals and real estate prices either in the cities or in the villages within the territory and time span examined in my analysis. Although this correlation is measurable on a macro-economic level, my micro-regional analyses revealed the complexity of asset pricing and price volatility. Continuing this survey, my goal is to identify the hidden factors influencing real estate prices, whose thorough mapping may promote conscious rural development.
Different methods for evaluating property have gained greater importance in agriculture since the change of regime. The open market evaluation could be the best method if the agricultural property had significant turnover, which could serve as a reliable comparison. However, there is no notable turnover, and selling is scarce. And, when there i...s some, the sales contracts are not available. On the other hand, the open market evaluation is almost the only one assessing method in Western Europe and in the United States. The matrix comparing market data in my methodological development helps to estimate the effects of the elements which determinate real estate value of farms.
Another method for evaluating farm property is the discounted future earnings. Enterprises are able to produce series of income continuously during their working periods, which can be considered as perpetuity. This is the base of the discounted future earning evaluation. Determination of income generating capacity is not an easy task. It is also difficult to choose the proper rate of capitalization. If this rate is higher than the usual level, the property will be underestimated. If it is lower, the property will be overrated. According to my calculations the profitability of certain farms of animal breeding may be evaluated under different operating conditions. Furthermore, the capitalisation interest rate may be determined in an objective way.
The problem of applying the depreciated replacement cost evaluation method is that there are big deviations among investment costs in tenders of contractors; moreover the estimations of special depreciation forms are rather subjective. One of the process’s greatest difficulties for reliability is that it is doubtful whether depreciated replacement cost could reach the real market value. The utilisation of this method may be spread further in the future by standardising average gross replacement cost of building as well as by measuring depreciation more objectively.
In addition to the processing of the available special literature, this study aims to provide an accurate view of the segregation processes in Hajdúböszörmény, as well as their effect on the real estate market by interviewing roma people living in Hajdúböszörmény and by getting to know the opinions of the affected professionals and deci...sionmakers working at the local authorities.
In order to analyze the social status of local gipsies – both inside the community and among themselves – we conducted an empirical research of 300 participants, in which we took the distinctive spatioand sociostructural features of Hajdúböszörmény into consideration. Furthermore, a second research was also carried out in which we quest...ioned 25 prominent persons. Participants were selected in a way that the study may give a realistic picture of each of the segregated areas of the town (focusing on social, educational and realty issues), thus besides questioning professionals dealing with the concern of gipsies on a daily basis, we decided to involve representatives of the local government as well. The reports concerning the realty status of the segregated areas were supplemented with further material provided by the local government.
The aim of establishing a National Land Fund was to realise the rational management of land property belonging to the Hungarian State, to assist in the realisation of estate political directives, and also to support the development of a modern property structure based on family farms. During this 3 years operation the National Land Fund has bec...ome the major player of the Hungarian land market. It has arranged land trades totaling 15,000 hectares, which makes 50% of total related turnover. The NLF created the reason for the existence of land as credit security with the provision of security of mortgage credits. National Land Fund has written co-operation contracts with 11 commercial banks in order to provide long-term agricultural mortgage with the background of land security. NLF has issued almost 1,000 conditional declarations of land purchase to the banks, helping the credit system of agricultural companies.
The valuation system „TÉR” created by the National Land Fund, is a many-sided, flexible system adjusted to Hungarian conditions. This evaluation system can determine the value of land in a reliable way. NLF built further controls into the process with the co-operation of independent revisers providing real determination of land value.