No Escape from Real Estate Appraisal
What Is Real Estate
Real estate is one of the most lucrative industries out there. Though it has gone through turbulent times, it is one of the most dependable. Everybody needs a place to live no matter how bad the economy is. Housing prices have skyrocketed over the past 20 years, yet the business has remained profitable all that time. It was able to flourish even during the housing bubble burst of 2008 when people would squat inside their homes when they were in danger of being foreclosed. Nobody who worked in that line of work lost during the Great Recession last time we all checked. To find out more about the housing market crash, check out this website.
Real estate is nothing more than property comprised of land and the buildings surrounding it. The value of the land plot can depend in accordance with the location. They can range from anything to how convenient the place is situated, the natural beauty of the landscape itself, or its juxtaposition towards valuable natural resources. If someone wants to live in New York City, it’s fair to say the say the real estate will be much more costly anywhere in Lower Manhattan between the Downtown central business district and the vicinity around Central Park in Midtown. That explains why there’s a street awash of high-rise condominiums just south of it nicknamed Billionaire’s Row.
The Message that was Sent
For most people when they think of real estate, the first thing that comes to mind is housing. That is the default concept that pops up into their mind because that’s the one that has the greatest appeal to wannabe homeowners. Everyone has been conditioned by the media from the time they were little to strive for that American dream. We’ve all been told day in and day out in the United States that we’re supposed to go to college, find a decent job, get married, and then own a nice house in the suburbs with picket fences around the front yard and a spacious backyard with bunch of children playing either.
That is the illusion everyone has been geared towards wanting. No matter how alluring that may be, times have changed since the 1950’s when American cities grew around the car culture, and everyone flocked towards the suburbs. In the wake of the Great Recession and the insane housing costs, more people have been moving into apartments.
That brings us to another factor in the equation. Real estate also includes rental properties such as apartments, tenements, condominiums, co-ops, duplexes, bungalows and many more. Just because average folks no longer have the means to live the American Dream the way Hollywood sold doesn’t mean they don’t want roofs over their heads with running water and utilities. Everybody is intitled to some sort of living quarters however fancy or simple it may be. You can learn more about how to increase your property value by clicking this link.
The Four Horsemen
The four other categories of real estate besides housing are: commercial, industrial, land, and special purpose. We can start by describing commercial. That includes anything in the business sector such as retail outlets, shopping centers, office buildings, movie theaters, and small companies. Everybody wants to do their business in the most convenient locations, so it makes sense that the value of the land will depend on that. Industrial is comprised of such things as power plants, factories, storage, facilities, and sewage treatment plants. The third one which is land sounds quite generic, but it’s just as significant. There’s always a need for farms, vacant lots, orchards, ranches, and timberland.
The last kind special purpose pertains to parks, cemeteries, government facilities, libraries, schools, churches, and other venues geared towards the public. The value of the real estate depends on supply and demand like everything else in the world of economics. Countless places in East Asia make it impossible for anyone to afford a house because the value is so high, and the populations are dense. Because Japan is a highly industrialized country with scarce land, it’s fair to say real estate costs are astronomical.
Hong Kong is one of the most expensive cities on Earth. Recently, a parking space in sold there for over $1 million USD. Because Hong Kong is extremely advanced and has a higher quality of life than most other places in East Asia, the desirability increases the value of real estate. The scarcity of land available for living spaces compounds the situation as is the case with Japan, Singapore, and many of the other advanced locales in Asia. You can learn more about the parking space in Hong Kong by viewing this link: https://www.bbc.co.uk/news/business-57353627
Where to Turn
Given the circumstances, there is a company known as Metrowide Appraisal that specializes in real estate which aids people all over the United States and Canada. Their objective to determine the real estate price of each locale. Keep in mind that all potential buyers are subject to the Personal Information Protection and Electronic Act (PIPEDA,) which states the homeowner’s and occupants must be given in an oral or written form It doesn’t matter whether you’re a first-time buyer or a seasoned homeowner. The important thing to take from this article is that there’s no way for any of us to circumvent real estate values and prices no matter how good or how bad the economy is.
Certain factors can nonetheless cause the value of real estate to deteriorate over time. One of them involves none other than natural and manmade disasters. Other issues such as crime, poverty, and job losses also contribute. Take for instance New Orleans. Nobody paid any attention to the Bayou City before the devastation of Hurricane Katrina. Most people deemed it as a tourist hotspot and a place where everyone loves to party during Mardi Gras. Everybody envisioned Bourbon Street in the middle of the French Quarter.
The aftermath of Hurricane Katrina opened Pandora’s Box. Not only did the public learn that the Big Easy is below sea level and in one of the most unsuitable locations to have a city. The disaster showed the city’s true colors and revealed how much crime, poverty, violence, and corruption there really is. Sadly, those problems weren’t hidden under the rocks anymore, and not long after Katrina, the Crescent City looked like the Exclusion Zone in Chernobyl.
Nobody felt comfortable going back there because they all caught on. Thus, the real estate business took a nosedive and has been struggling to stay afloat ever since. All of this is tangible proof that every purchaser should do one’s homework and find out as many details possible before investing in property.
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