Buying and selling of houses has always been a good investment since the days of old. This is because owning property especially houses is considered a sign of wealth and prestige. However the housing as it takes place in our economy is affected by different as discussed below.
Interest rates affect the buying and selling of property. Especially for houses, when the interest rates are high, people might consider to rent houses more than buying. This is because it is more cost effective this way. When the interest’s rates are lowered then people prefer to buy their houses. Therefore as you consider venturing in to real estate and housing investments always consider the interest rates in the market. Learn more in this link: https://www.huntergalloway.com.au/first-home-owners-grant-qld/.
The rate of unemployment in the economy. When many people are unemployed in an economy, it means they is less money in circulation. This means that few people will want to buy houses because they do not have the sources of income for that. Therefore if the government wants to facilitate the growth of housing markets, then they should create more employment opportunities for their citizens.
The rate of growth of the economy. If the growth of an economy is slow it means that few people are investing. But when the growth rate is high, more people are willing to invest in property and housing markets. This is also affected by the fact that people have money in their hand s that they are looking for investment opportunities.
The geographical location of the houses. If the housing property are located in a fast growing region, an industrialized, or a Porsche neighborhood then they are likely to have high demand. This is because they are a good investment that will give returns to their own within a short period of time. People always tend to shy away from buying property that is located in very rural place that growth may not happen in the near future since the houses may depreciate over time.
Another factor that affects the housing markets is the willingness of banks to offer mortgage loans. This means that people can acquire large sums of money to invest in buying houses. If the banks are not willing to give mortgage loans then few will venture to buy houses.
The list above gives you a sneak peak of what to expect in the housing markets. It is not exhaustive and therefore you might need to seek more advice from realtors and other experts such as the brisbane property market.
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