There are many conflicting facts that one will face when looking to purchase a home in the current scenario. If you are one who is interested in real estate as a long term purchase then you have to make the correct choice. To do so, you need to have a proper understanding of the possible boom in real estate in the next ten years or so. So what is it that will define a great opportunity when you are looking for a long term investment? Before that, let us look through the possibilities of real estate in the present and the near future by Boman Rustom Irani:
- Echo boomers are stepping out of their baby boomer parents’ homes and have now started going to college and becoming a part of the working population. This means that there is a very high volume of immigrants all over and this is creating a high wave of demand for rentals in particular.
- The other major factor adding to the demand for rentals is the increasing age of the boomers.
- The next point to be taken into consideration is that the boomer who own homes but do not have their children living with them are basically faced with the question of what to do with the extra property that they have. Since the market conditions are not exactly favourable for the selling for real estate property, renting of this extra space becomes the top priority for everybody. This, in turn places a downward pressure on the market thanks to the whole substitution effect – there is an increase in the number of households, which effectively suppresses the need for new homes.
- The boomer children are getting back on track with families that are comparatively smaller. This has resulted in a more limited housing demand.
- The pressure put on by rising taxes and the increasing rates of interest will definitely dampen the possibilities of new construction. This will only add to the pressure downsizing the housing needs.
- Many might lose confidence in investing in a house as a wealth repository due to the losses from the recession, the increase of credit requirements for home purchases and the increase in down payment. All of this will only turn buyers to renters, to an extent where renting a home may soon become the norm rather than buying homes.
- The growth of population has also slowed down considerably and this might also place some pressure on new housing and infrastructure.
So where exactly does the “boom” in real estate take place? Keeping all of this in mind coupled with the development of structure and architecture, let’s see how there will be a boom in real estate by 2020.
- Properties will have timeless architecture, which provide great lifestyle features like easy transportation for the masses, easy access to employment, shopping, walking and many more. Structures like these will be the future of real estate and will be big investments of the time.
- Homes that are considered as single-family homes in the current times, will be supporting multiple renters in the future. A few minor changes to the homes and the entire value of the house may happen.
- Futuristic homes will be highly efficient for living with features like low utility costs and easy maintenance.
- Properties with the optimum combination of location, accessibility, opportunity as well as quality of living will indeed upgrade the economy values.
Given the rate of development currently seen, real estate by 2020 will have most of its structures being a wonderful combination of all of the above-mentioned features. Providing luxury features at increasingly competitive rates is the aim of most real estate developers. Overall, the buyers stand to benefit the most – By Boman Rustom Irani.