Being Able to Afford Real Estate

It is almost every person’s dream to own their own home, especially people who have families. Who wouldn’t want to provide their family with a shelter to call their home and own it, right? With the news, that real estate properties are continuously increasing, most people decide to put their dream of owning a home behind them and rent homes, condo units, or apartments instead to call their temporary home. What people do not realize is that renting costs a lot of money in the long run, especially because rent has continuously increased the past years.  In a previous article, it stated that “survey estimates that almost one half of the owners salary check is designated for the rent in the real estate property that he/she is staying, and not only that the rent is continuously increasing as time pass by. This situation is present nowadays in the city of Miami, Los Angeles and especially New York City.”

With this situation, its seems nearly impossible for people to get their dream homes because most of their salaries are going into their rent and they do not have enough savings for them to potentially get a home of their own. What people who rent don’t realize is that the increase of rent is because of its high demand nowadays, leading to these real estate properties for rent to increase more and more each year. Leasers have known to take advantage of this and offer renters a high price although they know that renters can barely afford the price they are offering but these renters accept the price because they are just trying to make ends meet and have no other choice because renting will always be cheaper in than buying a home for the moment.

With living paycheck to paycheck, most renters have to find other job opportunities just for them to be able to stay where they are staying. Also, to save a little more money for their potential dreams that they made need a big sum of money for. Some may even go as far as being US comfort women just to afford their wants and needs in life, which is sad, but has become an opportunity for people just to live their lives the way the want.

home

 

Women Renting Homes

Women Renting Homes

Image by highlandhomes and 3rdeyerealestate

Difficulty in affording a house these days

price increase

price increase

With the problem in economy ,nowadays, that causes almost everything in terms of the value increases, from the famous oil prices hikes to the value of clothes, food, water and even shelter. Shelter is one of the need of a human being, it is like their private place, where in they can do almost all that they wanted to do. That is why for some people it is a must to earn a shelter for themselves first rather than other necessities. That is why the increase of prices of houses really affected the community; some of the people that are planning to buy a house will just rent an apartment or just live with his/her relative.

Based on the study of National Association of Home Builders/ Wells Fargo Housing Opportunity Index, two your ago the percentage of the real estate houses that can be afford by families that earn a medium income per year was as high as 78%, with the effect of the increase in economy this year the percent that a real estate house can afford went down to 62%, 16% percent lower to where it was two years ago. The main reason why the medium income family cannot afford some of the real estate houses is simply because the value of these houses increases. Indeed the increase in the price of real estate properties cannot be easily prevented because of the economy where almost the price of everything increases, however there is one thing that does not usually increase and it affects a person’s capability in affording the real estate property, and that is his/her income.

Rent prices are going up

for rent

for rent

With a high price in buying real estate properties, nowadays, some people ought to rent apartments, condo units or even houses and use it as their shelters.  However there is also a problem that is being encountered by people who rent a shelter for their family, that problem is that there have been a continuous increase in the rent prices of apartments and other real estate properties that are for rent. A survey estimates that almost one half of the owners salary check is designated for the rent in the real estate property that he/she is staying, and not only that the rent is continuously increasing as time pass by. This situation is present nowadays in the city of Miami, Los Angeles and especially New York City.

Comparing datas from the prices of rent last year and this year it was said that the rent this year is 7% higher than the amount of rent the past year, this proves that there is indeed an increase in the value of rent. The main reason for the increase in rent is that due to the high price that real estate properties have, people now ought to rent it rather than buy it directly thus increasing the demand for the real estate property however the supply cannot meet with the demand that is why people that allows their real estate property to be lease takes advantage of what the situation is and increases the rent price, because they know some people out there will have no choice than to take the offer because like what is said earlier there is a high demand for real estate property rents.

Having this problem in the increase of the value of real estate property indeed brought domino effects tin different areas, not only that it affect the increase in rental prices but it also affects jobs and family situations. Some are pressured that they need to have an extra income for their family just to give them a proper  life and some even goes for illegal jobs like, robbing, under ground fighting, gambling and even prostitution.

Image by manninglive

Real estate tax in London on the rise

London can be considered as one of the most famous country in the world especially when the Olympics were held there a couple of years ago. However London does not need any international events or competition to become famous or to be a target location by travelers. And just by walking around and strolling around there, it can already give a person the enjoyment and the satisfaction that he/she is looking for. One of the main destinations in London, whether it is a business related or it is just for fun, is its Central district, it is where most of the business in London are found and when there is business there is money.

That is why the central part London, where apartments and condominium are found, by real estate buyers. They know that if they buy a property in the central district of London there would be a high chance that they will get an income for it is one of the main destinations of tourists in the city. However the problem that London is experiencing is like the same problem that Tokyo Japan is experiencing, where in the people that buys their real estate properties are also foreigners, based on a statistic almost 70% of the real estate properties that have been sold for the past years are bought by foreigners. That is why the government of London is trying to make a law that would increase the tax that is needed to be paid by a foreigner in order to buy a property in the city, by doing so they will have the possibility of controlling the real estate market.

sad

tax increased

Image by dallaselderlawyer

Real Estate Situation in London

The buying and selling of Real Estate have been a competition nowadays. Some real estate companies started targeting Real Estate located in the continent of Asia, first in the line are countries of Hong kong, Japan and Singapore. Indeed the real estate market in these three countries is continuing to bloom, however these are not the only country that is making a noise in the Real Estate Market. One city in England is making a name for itself in the real estate market, this city is London.

London has been a target country for rich and foreign real estate buyers, not only that it is an ideal place investing their money due to good business opportunities that is present within the city. Another reason why real estate buyers decide to buy real estate property in London is because the tax system that is present in the city it is more fixed compared to other countries or cities. Tax is one issue that affects foreign investors decision in buying a real estate property, some properties costs a lot due to the high tax that the government of that country gives to the foreign buyers. Due to the increase of real estate buyers in the city, prices of real estate properties started to rise up to 18% according to the city government. One example of the increase of that happened in London is an apartment that was built in central London which is already on sale for 237 million dollars even though it is not yet fully finished, when this apartment is finished the real estate company said that the apartment will eventually cost 297 million dollars.

 

London

London

Image by swiftfitnessgroup

Latest news on real estate of New York City

With the problem in the economy nowadays, wherein almost the value of everything, many people cannot afford things that they can easily afford in the past. Some of the things that people cannot afford now are car, houses and other real estate properties. With this problem in hand, many people may have been affected by the problem in the economy but not the billionaires. These billionaires are spending more than million dollars for real estate properties that are located in New York. The value of these real estate properties in New York have increased to almost double the price cost couple of years ago. It is said that couple of years ago one square foot in New York City cost $1500 and now a square foot it is $3000, and that’s not all the prices of these real estate properties and that’s not all the prices of the real estate properties continue to increase as time passes by. The increase in value of real estate does not really affect the billionaires in buying these properties, in fact in Manhattan there were +75 in the numbers of houses that are sold for a price of $10 million or more. However unlike the situation in countries like Japan and Hong kong, the owners of these real estate properties are not foreigners, most of them are owned by an American. Examples of the real estate properties that were bought this year were Central park west condo, 740 ecopark Avenue and Colombus Circle Condo.

real estate price increase

real estate price increase

New Project for Tilai Real Estate named Tilai city

Developed countries within the desserts are one that is clicking right now in the real estate world, an example of this is Dubai. The main reason why most real estate companies are now focus on selling those land or making projects on those land is not only that they can see it as an arising asset, but also it is at those places where big projects that could be made.

One of the recently approved project that will be done in a dessert is the establishment of the project Tilai City, which will be headed by Tilai Real Estate Company. Tilai real estate company’s is one of the companies that aims to improve Sharjah’s sector. The project is located near the Emirates river and has a total are of 25 million square feet, however the exact amount of the project was kept secret for personal reason,  but imagine the amount of money that would be spent for an area of 25 million square feet.

The decision of pushing through with the said project was based on the real estate activities that occurs in Sarjah during the last year, where in there was a continues increase in Sharjah’s property sector. The increase in Sharjah’s property sector was brought through by the residential rental sector found in the country and the launch of new residential properties across Sharjah. Due to the increase of Sharjah’s property sector, Tilai City is not only the project that is set to be done withing Sharjah for the succeeding years, it was also said that investors also plan to build multiple apartment blocks and also a two high rise towers.

Sharjah

Sharjah

Image by Sharjahcityguide

How Global warming affects real estate in Miami

As we all know global warming is being experienced in our planet today. The increase amount of greenhouse gases, like carbon dioxides, that blocks the heat that comes from the sun and prevents it from coming out of the earth’s atmosphere. Trapping that heat causes an increase in the temperature of the earth. The effect of this global warming can already be felt nowadays, we experience a more warm weather, hurricanes becomes stronger, some ice bergs found in north and south Antarctica are starting to melt down and with the melt down comes an increase in depth of sea level.

The increase in depth of sea level is a factor for real estate buyers especially in real estates located near the shore, and this is what is happening in Miami. Miami being known for its famous beaches attracts real estate buyers to attempt to buy real estate that is located near the shores of south beach. However due to global warming some real estate owners are deciding to back out in buying the real estate properties. Based on a study on global warming the sea level is expected to rise in the upcoming years, and situation affected real estate buyer’s decision. They think that if the sea level will rise most part of Miami, especially the once near the sea level will be uninhabitable. That is not the only factor that affects the decisions of the real estate buyers, another main factor is also the possible contamination of the drinking water that Miami residence use, this contamination will be happen when the level of the sea water rises and reach Miami’s source of drinking water.

south beach, miami

south beach, miami

Image by destination360

Discounted houses on sale in Hongkong

There always been a connection between business and competition, the proofs can clearly be seen in almost every business that is present today. One of the most common business rivalry is the competition between iphone and Samsung. Where in they compete with each other in attaining a better product that the public will choose to accept and buy. The said competition can also be seen in selling real estate properties. From endorsing real estate properties, to giving flyers to attract buyers there is always been competition. However, there is one factor that in selling real estate properties is seldom used in the competition. The factor that they use is lowering the value of a real estate is dropping the costs of these real estate properties, or simply discounting them.

The said way of marketing is used in Hong Kong in selling some of their real estate properties. Two of the most targeted countries in the world in terms of the location of the real estate that they are going to buy is Japan and Hong Kong. However Hong Kong is experiencing a crisis in the amount worth of their yen that is why real estate buyers ought to choose to buy in japan rather than in Hong Kong. That is why Hong Kong discounted the cost of some of their real estate properties in order to attract real estate buyers in buying their property instead. Hongkong real estate sellers offer different discounted packages to its buyers. It was said that the discount rate that they put on to their real estate properties is as much as 11.5% discount and is expected to rise up to 15% discount.

Discounted! Buy now!

Discounted! Buy now!

Image by wrightusa

Chinese real estate buyers sets their eyes on Tokyo, Japan

Japanese continue to worry due to the value of yen decreasing while foreigners, especially Chinese real estate buyers, grab on the chance in buying real estate properties in Japan. The real estate that are commonly targeted by these Chinese real estate buyers are the once found in Tokyo city, Japan. This is because Tokyo is one of the most commercialized city in japan, meaning they would surely earn money by having a property there. The real estate properties that Chinese real estate buyers commonly buy are apartments that they can immediately use for income.

Hong kong and Japan are included in countries that attracts Chinese real estate buyers. With a growing economy owning a real estate there will surely earn some income. However as time passes by the value of real estate property at those two countries increases with the increase of the value of the real estate itself plus the nonresident tax that affects foreign buyers decision in buying real estate properties in Japan, that is why the most foreign investors decided that instead of buying real estate properties in Hon Kong or Japan, they will just settle in buying real estate located in United States. That is why when the exchange of yen goes down these Chinese real estate buyers took advantage of the situation and they started buying real estates in Japan without complaining about the non-resident tax that comes with it. According to Alex Yueng, director of culture property in Hong Kong, he compared the situation in Japan to that of in Hong Kong and said that the parking lot spaces in Hong Kong costs more in US dollars compared to the apartments in Japan due to the arising yen crisis.

YEN

YEN

Image by wikipedia