Houses - Inflation or really go up in value?
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
Why would houses go up in value in a predictable manner?
maybe if the place has been developed or the reputation of the place now...some houses in that area could go up...
[QUOTE=sss3d;1010]The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.
Why would houses go up in value in a predictable manner?[/QUOTE]
They won't go up in value if the neighborhood declines to an unacceptable level. You build a $200,000 house and the neighborhood crime rate skyrockets you will never get the money back you put into it.
There are booms and busts in housing, just like any other market. Just look at Las Vegas as an example. For a while the housing prices with skyrocketing, even with the constant construction, but the market is going through a serious correction.
Interest rates also affect home sales. When interest rates are really low, people can afford better houses, and the market tends to improve as people upgrade and those who couldn't afford to buy suddenly find they can. When interest rates rise, people get stuck in houses they can't sell, and the only part of the market that tends to do will is the low middle and low end, as some people have to downscale and new owners can afford less.
If you can afford it, a slump is a good time to buy at the higher end.
That's why I want to get out of my neighborhood and move to a nicer one. I'm afraid that the property is going to decrease cause it's not as desirable area as some of the others in the area.
It depends on the location of the house and the development around it..
Thats because people nowadays depend on more convenient and luxury around them. So they are looking for more popular area and the place where they can get enough of their needs and accessories tends to go for that kind of billing.
