Monday, September 26, 2016

Some Thoughts On Real Estate Investment

what time is the right time?

Investment in real estate will not always yield good returns. Real estate market always fluctuates. With every policy decisions, real estate prices witnesses huge fluctuations. As one of the main pillar of the economy of a country, it functions as an indicator how strong the economy is. 

As in the every other market, real estate market also function on the basic principle, that is, the demand vs supply decides the price. Rumours also causes the price sky rocket.  

The rise and fall of economy is closely tied with the housing prices. Remember the housing bubble some years back. What happened was banks were lending too much money and people started investing in the real estate thinking that it will never come down. Housing prices were testing the new limits and then? What happened?  Soon the bubble broke and prices came down sharply. Many people were homeless. Banks who were once lending without asking too many questions has made themselves in a very bad situation. They became desperate in auctioning the houses at their disposal adding to this fall in housing prices. 

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