Buy Real Estate Dreams or Realty
Michalis 'BIG Mike' Kotzakolios

Introduction

Buy real estate is the most cherished dream of people from all economic strata. There are indeed very few feelings that match the pride of owing your own house. At the same time, buy real estate is the single largest investment that one makes in one’s life, parting with a significant portion of his/her lifetime savings.

If the person takes a home loan to buy real estate, the reimbursement period often spans the major part of his/her working life. Thus, buy real estate necessitates careful analysis and informed decision making. The good news is unlike before; the terrific advancements in the banking sector have made the dreams of buy real estate not that distant any more.

In the past few decades, the age of buy real estate has dropped to less than 30 years from the average 40 years. This is hardly astonishing when one looks at the various aspects at play that have made buy real estate easier than ever before.

Some of the key factors are:

Rising Income

Along with the ever-rising pay scale the cost of the home ownership in terms of annual income has plummeted to 4 years now from the 7-9 years, a few decades ago. This factor has played a crucial role in making buy real estate more affordable for people.

Declining interest rates

The home loan rates, which were around 15 per cent per annum, are currently at seven per cent per annum. Effectively, it implies a lower monthly loan repayment or equated monthly installment (EMI) for the general public. The declining rates also mean that potential buyers can now afford to borrow much larger loans and buy real estate that they would have only dreamt of a few decades ago.

Easy availability of loans

Nowadays banks and financial institutions are readily disbursing home loans at competitive rates, for five to twenty year terms and, moreover the loan application processing is much quicker than before. The person can now avail of pre-approved home loans, which are sanctioned on the basis of one’s credit history. The actual disbursement can start a week after the lender has scrutinized the legal and technical aspects of the selected property. Thus, if the person applies for a home loan after finalizing the property, the entire process can take only a fortnight.

Rising Rent

In the last few decades, property rents have appreciated significantly in large cities. The tenant realizes that by diverting his monthly house rent to an equated monthly installment of a home loan, he/she can buy real estate and in so doing create an asset, that has the potential to appreciate considerably over time.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, YPN, Chitika and other PPC services.