Real Estate Relations

REAL ESTATE RELATIONS

 

Real Estate

Real estate business has experienced enormous growth over the years due to high demand for land and space for either residence or commercial purposes. The demand for housings is influenced by various factors which vary among owners, occupiers and investors. Factors that influence demand for real estate includes;

Security

The majority of investors prefer residing and even investing in areas where there are rare or no cases of insecurities. Most real estate uncertainty is majorly reliant on two factors which are land grabbing and increased crime rates. A peaceful environment free of crime rates and official land titles attracts more investors and occupiers thus increasing more interest for property owners who are into real estate business.

Demography

Increased immigration's have raised housing demands especially in areas where people perceive to be having golden opportunities for employments and business nourishment's. Most immigrants tend to move to areas where housing is in shortage due to high populations in these regions.Commercial investors, for instance, view such areas opportunities for growth of their business and make more profits. Immigration, on the other hand, impacts burden on occupants as it increases many gains for benefits real estate owners. This is because landowners are likely to increase housing prices due to housing shortage high demand for houses.

Wide Interest Rate Gaps between Owner-Occupiers and Inventors

            Many borrower investors are paying high interests rates as compared to that charged to owners-occupiers. However, mortgage brokers in Australia predict that the gap between investors and owner-occupiers may widen in future. The widened gap may be due to tightened bank credit policy to borrowers. Many lenders have adjusted their lending policies by offering favorable discounted interests to investors thereby encouraging more investors to reconsider charging fair rents to owner-occupiers.