Affordability of Real Estate to the Customer and Other Ideas by akun.IKHSAN02

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									The real estate industry is an assortment of property agents, brokers and
firms. They offer an assortment of properties from bare raw land to low-
cost housing, lower and upper middle-class dwellings in stand-alone
houses and/or row houses. Expensive apartments, luxury condominiums and
even mansions are leased, managed or sold by different sorts of real
estate establishments. There are so many faces of it. Exposure to the
industry for some time, more or less, gives one an idea of types of
properties handled by particular real estate firms.

The types of properties handled by particular firms are, somehow, a
branding or classification that creates the company's reputation. Agents
or customers with some knowledge and exposure of property wheeling and
dealing would know which company to approach for specific types of
properties for which kind of customers or go-betweens. Some have pre-
arranged or pre-set agreements in terms of commissions and incentive
packs that may or may not have extended benefits to the customer or end-
user.

The customer's perspective is an outsider's view as if he has nothing to
do with the industry. It is ironic that the very component that fuels the
real estate industry is the one that does not have the privilege of an
insider's view. While it is the sector that pays the cash for the units
it buys, rents or leases, the customer does not have a hand in actually
pegging the price for the merchandise. The firm computes percentages for
commissions, salaries and wages for its employees, utilities and other
overhead costs then adds a handsome layer of mark-up for its own profit.
The customer has to pay and swallow all of these costs despite his meagre
resources.

To be able to purchase the real estate unit of his choice, the customer
has to borrow from a bank offering the same unit he is buying as
collateral in a mortgage loan. In short, he exposes himself to the risk
of losing what he is buying if he fails to meet his obligations to the
bank in monthly amortisations that include interest on the amount he
borrowed. He has to labour many years before he can have a full claim of
the real property as his own. But he cannot otherwise own the property as
he cannot afford to acquire the unit on a one-time full payment
transaction.

The real estate business is conducted in that manner because at present,
it is the only way that the average citizen could afford and pay for real
property. There is the cheaper option of lease or rental that assuredly
does not offer a chance for the customer to really own the property. This
is the area where the customer has control over - to buy, lease or rent.

If you have other better ideas, put it on paper. It just might lead you
to your own financial freedom.

								
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