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Challenges Facing Real Estate Property Investment

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					Challenges Facing Real Estate Property
Investment
One thing that many people will be in agreement with is that up to now the industry of
real estate is struggling to make an impact on the lives of people. It is still down and it's
yet to rise. If it was capable enough, countries wouldn't be experiencing the housing
challenges they are having nowadays. Initially it was said that the high interest rates that
were charged on mortgages explained this condition. A few years ago, these interest rates
were reduced but still the situation has not changed. This shows that there are other
factors which affect this business of real estate property.

Therefore, if you are an investor and you wish to invest in residential property, the
following are some of the challenges you need to be prepared for.

One of these challenges involves issues to do with unemployment. Research has it that
unemployment is the major challenge that hinders the business of residential housing.
This is because of the obvious reason that a person who doesn't have a job can't afford to
buy a decent home. However, this is not the case always. Even those who are employed
are reluctant in taking a mortgage. They fear what will happen to them if they lose their
jobs and they have a loan to pay for a residential property.

The second factor that poses a great challenge to this industry is the ever rising numbers
of the human population. Though population increase provides a large market to this
sector, different people have different tastes and preferences. It is therefore hard to meet
all the requirements that they want. Due to this reason, some homeowners have suffered
many losses as they were not able to sell their properties because they have been turned
down by the buyers. It is therefore advisable for investors to carry out a thorough
research on people's likes and dislikes.

Lack of capital is the third challenge that the industry faces. People don't have enough
money to pay as a down payment for these houses. Others on the other hand are not
willing to put their money into this kind of business. The result that is obtained from
these actions is that the industry gets fewer finances that can't propel its growth.

Natural calamities have also hindered the growth of this sector. The negative impacts
brought about by earthquakes and floods are the examples here. Complete houses have
been brought down by these calamities. Man's actions have also affected the growth of
this industry. Actions of terrorism and those that lead to fire burning are the instances
here. Unhealthy business competition is the challenge that has also contributed to the
downfall of this industry. New investors are finding it difficult coping up in this market
because those who entered the market early are monopolizing everything.

However all is not lost in this industry. Solutions can be sought for these challenges and
the industry can be reclaimed. Proper planning and preparation need to be done by both
owners and buyers of these homes so that challenges can be managed effectively
whenever they come.

				
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posted:7/28/2012
language:English
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Description: Real Estate the Property Management Category