Tag Archives: Property

There has been tremendous growth in the real estate industry over the past decade. This can be attributed to the fact that property appreciates. Several forces can affect pricing in the real estate market. Apparently, some of the factors are beyond control thus hard to plan for. Here are some of them.


Capital growth rate

Property prices are expected to rise with the increase in household income and vice versa. gray houseProperty dealers working with nominal growth are more negatively affected compared to those working with inflation-adjusted capital growth since the latter can be tardy and average.

Capital gains tax

Imposition of capital gains tax by government increases government revenue but lowers the return on investment. Investors and entrepreneurs are subsequently affected in both monetary and psychological terms. This effect eventually reduces capital reallocation and creates undersupply by hampering the available stock.

Overseas buyers

Since foreign buyers can only buy new properties, yet these new properties are few, their prices increase with this increased demand and reduced supply.


As a matter of fact, certain areas have urbanized faster than others. This variation in development is perhaps as a result of people migrating there in search for more comfortable amenities. Thus, property developers factor in their pricing this potential increase in the demand for houses.

Negative gearing

Since investors are diverse and with distinct preferences in the way they operate, some look for cash flow through positive gearing while others do that through negative gearing. Negative gearing increases demand by manipulating demand-supply dynamics, thus raising prices.

Rental vacancy rates

When investment properties remain vacant for extended periods of time, rental returns are affected. The inseparable relationship between rental returns and capital growth means that prices will be affected by this effect in rental yields.

Zoning restriction

Land use restrictions have a significant impact on land value and eventually on the value of properties developed on that land. There are certain times when the government restricts an area from engaging residential development while other times, the same government may only allow apartments and dwellings in certain areas, limiting commercial developments on the land. These restrictions indirectly affect land value, just as it affects rental value.

Low-interest rates

When interest rates are low, buyers have a greater incentive to buy property, since mortgages now attract low-interest rates. However, this increased desire and ability to buy can only cause a rise in the prices of property. Thus, prices of properties have to be set based on government policies about interest rates at any given time.

Population changes

big house Migrations from one place to the other causes impact in property prices. For instance, places where people migrate to face housing problems since housing often fails to keep pace with population growth.

If not quickly controlled, it causes a chronic housing crisis that ensures house prices remain high and vice versa.

If you are buying a house for the first time, there are certain things you should know in order to make the right decision. Purchasing a house is a great and costly investment, so it is vital to take all necessary measures to get the house you have been dreaming of in your entire life.

Tips that will guide you to get the best house

Hire a real estate agent to assist you

Buying a house is not an easy process. It requires a lot of knowledge and skillsfamily in front of a house in order to get a house with the specific qualities that you need. It is a process that requires a lot of documentation, which require great knowledge to complete. Working with a real estate agent will help make the process easier. They have knowledge and skills on how house buying process goes, so they will be of great help to you. Real estate agents also have knowledge of all the houses listed for sale, so they will help you get a house with the qualities you want at an affordable price.

Carry out house inspection

When you are buying a house, you must ensure that you buy the one that is in the right condition. This will ensure that you do not incur other costs doing the repairs and other works that might be costly. Therefore, before you make the final decision to buy a certain house; you need to inspect it to ensure it does not have any defects. To ensure that you do through inspection, it is good to hire a professional home inspector to do the work for you. By doing this, you will have peace of mind that you are buying a great house.

Bargain for the price

small house and keyMost of the prices quoted by house sellers are above the market price. This means that if you bargain for the price, the sellers are willing to reduce a substantial amount. In order to understand the market price of the type of house you want to buy, you should do a thorough market research. Real estate agents have great negotiation skills, so it is good to work with them when bargaining for the price.

Save as much as you can

As mentioned above buying house is a costly investment. You need to have enough money to buy the house and also for other costs involved. It is good that you save as much money as you can, for your investment.