Predictions for Real Estate in the US in 2015

Real Estate

Real Estate

In 2014, more and more houses became less affordable for homebuyers. This was most likely the reason for the decline in sales. Because of the prices increasing, first time homebuyers were not able to buy the properties they wanted. First time homebuyers just stuck with their rent and let the sales of properties go into the hands of the wealthy, those who could actually afford it in the prices that were offered. Hopefully, in 2015 the situations will be more different. Here are a few predictions with what may happen in real estate this year:

  1. There will be a lot of property that will be on sale. Homebuilders are likely to respond to improvements of household formations and more homeowners will more likely sell their homes.
  2. Mortgage rates may rise, which may or may not be good news for homeowners and potential homeowners. But based on rational economics there is a chance that it will, but no one actually knows what may happen until whatever it is actually happens, right?
  3. Prices of homes will go down. Some may already be decreasing because most real estate properties that are way too expensive will not sell unless the wealthy are interested in the location and the property, but other than that the seller is out of luck. Also, the cause of real estate decreasing could be the possibility of more properties going on sale. If more properties go on sale, there is more competition and prices may decrease. Do not hope for crazy decreases on price though!

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Huge Retailer Calls it Quits, Leaves Landlords with Vacant Real Estate

Target Logo

Target Logo

U.S. retailer Target has been losing a lot of profit in their retail stores in Canada. Because of this, the retailer has made a decision to shut down their stores in Canada before they lose even more profit. With Target closing down their stores, numerous landlords are left with vacant real estate. Target is making sure that they are getting rid of their stores as efficiently as possible, although some retailers already have their eyes on these potential vacant real estate properties. The question is, would there be one single buyer for all vacant real estate properties or several buyers? A lot of people are looking at Walmart and Loblaw to purchase these properties that are being vacated by Target, but according to a real estate analyst, it is highly unlikely for just one company to buy all the 133 real estate properties or even just Walmart and Loblaw. It is highly likely though for Walmart and Loblaw to purchase majority if these vacant real estate properties. If Walmart and Loblaw do not purchase all of these vacant properties that Target is leaving behind, other U.S. retailers might see an opportunity to open up in Canada, like Dick’s or Kohls. Although this event may seem like such disappointing news for landlords in Canada, it may actually be seen as an opportunity for these landlords. Most of these landlords could raise higher rent for most of the vacant real estate to the eager potential leasers of these properties compared to the $5 per square foot they were charging Target.

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Open House Gone Wrong

Open House

Open House

Open houses are set by real estate agents in order for potential buyers to see the property and hopefully entice them into getting the property as their future investment and home. In order to fully entice the buyers, the sellers of these properties usually leave the properties fully furnished in order for the potential buyers to see the what the property has to offer. Unfortunately, some mishaps can happen during open houses with fully furnished homes. It is not a mystery to the public about what can be found in these open houses when there are a lot of shows involving the sales of real estate properties, especially luxurious homes. Most open houses receive positive feedback and potential buyers, but some unfortunately do not. A woman from Maryland caught on about these luxurious open houses being held when she searched the internet and came up with the idea to check them out and scope the places out. You would think that this woman would be checking these houses to potentially buy them, but she had other things planned. She even went as far as introducing herself as a real estate agent to the person holding the open house and said that she was checking out the places for her clients. Meanwhile, while checking the places out this woman was stealing jewelry and an irreplaceable heirloom. Eventually, people caught on and had the woman arrested. The woman is now serving time in jail for a year and probation for 5 years. With these type of news, it’s important for people to be aware and be careful about their personal belongings.

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Declining Sales in Second Hand Apartments in Japan

Tokyo, Japan

Tokyo, Japan

In Tokyo, Japan, there has been a decline on sales of second-hand apartments. Every month in the year of 2014, it has been recorded to continuously decline in sales. The reason for this may be the continuous increase in the prices of these apartments. The Japanese are looking to invest on these apartments in order to reduce inheritance taxes, which is why it has been such a high demand within the wealthy, leaving behind those who cannot afford much. With the wealthy looking to reduce their inheritance taxes, the middle class is being left behind with these ridiculously high prices and leaving them unable to purchase a property for themselves. With this the sales of second-hand apartments are decreasing, while the rent of apartments is remaining the same. The Japanese who do not have great high paying jobs are left to work another job just to create enough income to save up for these high price apartments. Some may even resort into becoming Japanese comfort women. But with continuous increasing prices, how will one ever have enough money to purchase their property while all the wealthy are just living luxurious and not minding whether property prices continually increase as long as their inheritance taxes are reduced? This is the reason why most might resort into getting a part time job that might have never been part of their plan before but are willing to do whatever it takes to purchase a property that they can call their own. Hopefully, with the sales decreasing, the prices will start to decrease.

Tokyo Apartments

Tokyo Apartments

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Image by Tokyoprices

Real estate competition in the Philippines

Nowadays, to be the best, you must compete with the best and make a name for yourself, that is what is happening in almost every business present today. One of the most common competitive business that are competing are companies of real estate builders. As we all know, in the Philippines, there are many condominiums, apartments, hotels and other more real estates that are currently being built in almost every business district. So, here are some of the companies that are competing for every real estate project that they can have;

First is Ayala Land Inc.; this company have been one of the leading real estate builder company in the Philippines for years now, in fact for the past two years the company have earned an approximately 100 billion pesos with the building of real estates and it does not matter if it is a residential real estate or a commercialized real estate. A competitor of Ayala Land Inc is SM land Inc. this company on the other hand have been the constructor of almost all SM malls around the country, which includes the biggest mall in Asia the SM mall of Asia. Another competitor when it comes to real estate building is Mega World Corporation. These corporation have built a numerous amount of 40000 condos from years 2001-2011 and still continuing in building them. Some of the well known project that this corporation had done was the transformation of the Libis Quezon City into a Business district. There are still also competitors like Robinson’s Land Corporation, Rockwell Land Inc, Federal Land Inc, Eton Properties Philippines and many more that are all competing in building real estate properties.

competition

competition

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Most expensive Rental in New York

Buying a real estate property or simply a house is one of the most common target of families nowadays. This is because with this houses they can have their own privacy, their own safety and their own life. However, we all know the situation that is happening in the economy right now, prices are going up ion almost every thing, food, water, clothes, gasoline and also real estate properties. With the said problem on hand, people nowadays choose to just lease a real estate property rather than buying it, for them it would be cheaper and they can rent a house as fast as they want to because we all know that renting real estate properties can be found almost everywhere else.

Renting a real estate property is indeed cheaper than buying it, however, the situation is no like that in New York. There is this hotel in New York that is called Manhattan posh’s Pierre  Hotel that charges 500 thousand dollars for a one month stay. The rent is consist of the whole 39 floor which consists of 6 suites and a one bedroom Getty suite which if rented alone costs 150 thousand dollars itself. Indeed the rental cost per month of the Pierre hotel is one of the most expensive rents that a person might see and you may ask yourself if there are indeed person that would rent these type of real estate, but based on the records these 500 thousand dollars real estate properties is rented as if it has a low price, it is  commonly rented by international visitors that are traveling with large families.

Pierre Residence

Pierre Residence

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Real estate sales problem experienced this November

We all know that one of the goal of a family is to buy a house of their own, a house where they feel safe and comfortable. However, even though having a house is one of the goals of modern family nowadays, due to the problem in the economy, people cannot afford to buy houses. Some people just choose to rent real estate properties like houses or apartments rather than buying one for themselves. In fact, there is a problem when it comes to the real estate property selling last November, there had been a decrease in the sales of real estate properties which bothers the real estate market. The decrease was approximately 22% of the sale of October which is really a big value, the Realtor thought that this decrease in sales was just because of change in seasons because the sales really drop during the winter months, however, when they tried to compare the real estate situation November last year to this year’s November real estate situation the sales of real estate property last year is higher compared to the sales this year, it is higher for more than 11 percent. The reasons that Realtor think that may cause the decrease in the sales of real estate properties is that these real estate properties increases in their value compared to last year which also affected the mortgage bankers due to the fact that single family home sales have dropped top 400 thousand units, 13 percent lower than that off the value during the month of October.

real estate price increase

real estate price increase

Real Estate situation in Philadelphia

It is always good to be a business minded person, and the early you invest on a business the greater the chance of you to be successful in life. Business can come ion forms of little business like just selling goods over the internet and some may be big businesses where in they sell stuffs or just like situation in Philly, they earn businesses by buying real estate properties. Young Philadelphians, which are commonly composed of people at the stage of mid to late 20’s, are buying real estate properties in the center of Philadelphia and using it for their businesses. They use this real estate properties as a location for their businesses and some of them use it as the business itself allowing people to rent the property itself. The main reason why young businessman are trying to buy real estate properties in the center of Philadelphia is that because this part of Philadelphia is being commercialized and rebuild into a much wider scope which means the Philadelphia government is trying to make this the central business district of Philly and that is why these young businessman took notice of the changes happening and grab it for their own benefits. A unit in the city downtown costs approximately 200 thousand dollars.  It is also said that unlike the situation on other cities and countries where in there had been a decrease in selling of the real estate properties due to different factors, it is not the same here every month instead of decreasing there had been an increase in the value.

city of Philly

city of Philly

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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

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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.