People are only aware that real estate is one of the best profitable and money earning industry. During the period of recession, most of the industrial sectors faced losses and damages. In contrast to all industries, real estate was the one which sustained with vitality providing huge profits for the state owners. Most of the people in present scenario know only about the good causes of this business, but there are many struggling challenges faced by these business holders.
A few years ago, the interest rate for housing loans were quite high. Therefore, Housing became a struggling challenge for a common man to get it accomplished. In these days, most of the banks are providing housing loans for lower interest rate. But the struggling situation still persists. To own a house is a dream in the life of almost every individual. The challenging factors in the real estate lead the people to keep away their dreams.
Here are certain factors that reasoned to be the challenging aspect of real estate industry.
Unemployment is the main challenge raised for owning a house by a common person. It finds too difficult for an unemployed person to buy or build a house. Due to unemployment these people do not deserve for eligibility to avail loan. But, in these days, even the employed ones are unable to buy a property. Moreover, they are neglected for availing housing loan guaranteed on employment. The employed one’s are fearful about the consequences if they lose the job and if they have loans for their house.
The increasing number of human population is another factor faced by the real estate owners. Even though populations increase the demand for properties, many of the property owners are unable to sell their property for a reasonable price too. The taste and interest of the people about a property is different from one another. To meet their interest in properties, these real estate owners find it very difficult. To sell the property, these owners are now conducting in-depth research on the interest and tastes of buyers.
Money is the subject matter in all business. Mostly, buyers find difficult to pay down payment. Some people find investment in this arena as non profitable. Therefore, there is lack of funds in this industry to flourish and expand. For this reason, lack of fund has become another factor faced by the property owners and people related to this industry.
The natural calamities taken place in different areas in planet earth had created a fear in the mind of investors to invest in properties like land and home. The earthquake and floods happened in several parts of world are the examples for natural calamities which caused severe damages and destruction to life and properties of the people. The terrorist attacks like bomb explosion and fire burning is also a drawback of real estate to get more investors. Apart from these fearful factors, the new investors find difficult to compete with the monopolies in this field.
Even though there are many challenging factors in this arena, all this can be overthrown if the buyers and owners take every steps with accurate planning and effective preparations.