Housing Market Research Paper

Words: 1769
Pages: 8
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Clinton Lee Carr
Mrs. Hamm
English IV
2 February 2018 Factors That Affect The Housing Market

Each real estate agent must consider the many different factors that affect the housing market while going through the process. Considering all of the positive and negatives that could go wrong with the housing market, there are many things to look for when valuing a property, or viewing the historical aspects of a neighborhood. This opens a variety of opportunities for a realtor to learn how to price houses, or choose to renovate a neighborhood to bring in more investors. Consumers look for many things when searching for a property to invest in, such as the age and condition, and the neighborhood. There are many things that can change the housing …show more content…
On the other hand, there are investors who look for higher capital growth by making the selection for negative gearing. Negative gearing influences demand and by altering the supply-demand dynamics, causes the prices to inflate. While negative gearing has resulted in an inflation of prices in Melbourne and Sydney, accusing it entirely will be a wrong approach. There was a time as recent as 1999 when landlords made $220 million of profit during this time. Today, they are experiencing a loss ranged close to seven billion dollars due to the concept of negative gearing appears interesting to them. The government is at a loss of somewhere between five billion dollars to nine billion dollars in taxes, but what is more significant to take into consideration is that only seven percent of it is directed towards new houses. Foreign investors are laundering plundering funds by unlawfully investing in established properties (Twelve Factors That Affect Property …show more content…
Finding a property with nearby features such as shopping centers or super markets, and access to major highways can be very appealing to the investors, because convenience and comfort allow people to settle, this helps realtors grow and find more appealing properties. Familiarizing oneself with a neighborhood and all of the properties will allow the realtor to sell a property with a fair value, and it will ensure that the investor is getting what they paid for. Property pricing can be based on many things, such as the history of real estate in the area, or how well maintained a property is (Six Factors That Influence a Home’s
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