Real estate is a preferred investment class in the world. There is a direct relationship between the amount supply and finding amount in its way in real estate. Only a few people know that real estate creates more money supply. This real estate creates a situation for the money supply. The relationship between the banking system and real estate will never end. This system of the environment increases the real estate price. The major economy of income is not changed still, but the real estate price and real estate agent rising is a bubble. This bubble just burst in short periods. In this world, 80% of the houses were bought in borrowed money only. The word mortgage is a synonym of the house purchase. It is created in real estate. The high inflation is created in mortgages markets. Because of this, workers lost their original wages. The excess money and the more demands created the growth of the real estate price. This becomes strengthen the investor’s confidence. It assures investors’ profit. The speculators create money by observation on real estate. Excess cash and excess demand are joined now in speculative intention. Speculators raised the real estate price in high. This past high price is the justification of the future high price. This is the reason for the rapid growth of mortgages as well as house price. Buying a property is an emotional one to all. Couples or individuals whoever in the late twenties and thirties are the fastest persons in buying homes. In most families, elders may already be bought or built the house for their future generation. Even though they had a house already, now younger generations are also showing their interest in purchasing a house after their marriage. Purchasing a property is a rite of passage.
Behavioral Aspects To Invest
The real estate developers are well versed in the family tendencies to buy houses. So they stimulate their emotion. Mixing family emotion the real estate is a business trick. It makes people decide on bad investments. Many people are buying the property for economic status. Once the buyers finish college, their first ambition is to get a job. After getting a job, they get mortgages to buy a property. Here also, emotion plays a vital role. Here too, emotion only takes a decision. Everyone feels that buying a house is a symbol of success. Real estate developers are also aware of this. So they directly approach this kind of person only. Even the developers built houses for middle-class people in suburban areas. Through this real estate developer kindle the middle-class people emotion also. All over the world government offers tax-free to buy a house. This gives positive vibrations to the real estate business. This will help many millionaires. Wealthy people may have more money. To avoid the tax they may plan to buy more apartments and lands. Before five decades the real estate trust was introduced in the U.S. Then it will become a term of the market and it is also accepted. Real estate trust is like a mutual fund. This trust is individually exposed. Each people accepts it.