Factors Affecting the Housing Market

Published: 26th June 2009
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The Housing Market is the market, where people buy and sell different kinds of houses. The houses can be bungalows, apartments, villas, condominiums or country homes. The other name of the housing Market is Residential Real Estate Market, as buying and selling of houses are nothing but a real estate business. People who are involved in the Housing Market: 1.Owners- Owners are those people who own houses and use them for living purposes. 2.Investors- Investors are those people who buy houses not for their own use. They rent out or lease out the houses when they are in need of money. Investors even make business from this. They buy houses to sell them for higher prices in future, which will gain them a huge amount of profit. 3.Renters- Renters take houses on rent for personal uses from the owners of the houses. The Renters must pay money to the owners every month for staying in their house. 4.Builders- After acquiring lands builders construct houses on them and sell in the Housing Market. Usually Builders build apartment-like buildings where each apartment contains around twenty houses.



Some factors that play a vital role in the Housing Market are Income of the People, Price of Houses, Cost of Financing, Availability of Housing Loans, Preferences of Consumers and Preferences of the Investors. It is a terrible time for the housing business at present as the prices are falling. Anyone who buys now will suffer losses immediately, and for the next several years at least, as prices fall into line with tighter lending and stagnant salaries. It's still much cheaper to rent a house than to own a house. On the coasts, yearly rents are less than 3% of purchase price and mortgage rates are 6%, so it costs twice as much to borrow money to buy a house than it does to rent the same kind of house. As the interest rates increases from 5% to 7%, there is a 40% increase in the amount of interest a buyer has to pay every year.



At present the houses are at very high prices so that not everyone can own a house.There are many other factors beyond the cost when you're buying a primary residence 1.Know when to buy. 2.Know where to buy. 3.Know who should manage the property 4.Have a plan. 5.Don't get emotional nor attached with location or appearance of house. 6.Invest for the right reasons.

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Hollie Wilcox is writing on behalf of www.swiftcapital.co.uk to provide you with the latest information regarding the housing market .

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