The real estate market is growing as each day goes by. Buildings are rising from the ground within a short period of time and it seems that the market is getting flooded. Well, this is never the case with real estate because even as many buildings are going up, the demand also keeps on increasing. People who want to be in this business should consider some of the characteristics in this market.
Real estate is durable
This is a business that has existed for many decades without breaking down. The real estate market in New York City is standing proof to that. The existing structures account for 98%, compared to 2% of new developments. Big cities that have always existed have many buildings that do not need many new constructions. All that the real estate agents are doing is renovating these existing houses in to new designs which cut a lot of cost of building from scratch.
Unique in nature
Buildings are not constructed in the same way, located in different places and financing is also a variable. You find that houses with the same amenities but in different locations have very different prices. Somewhere else you can find the most luxurious house at a cheaper price just because of location. Economists tried to maintain this uniqueness by suggesting supply on the basis of units in demand. You get to pay for the uniqueness of the building as a whole package.
Consist of the highest transactions
Let’s take take a look at these costs and see what exactly makes it expensive. Here are some of the fees you have to pay with regards to real estate; searching fee for a house, agents fee, cost of moving, legal fee, taxes, registration of title deeds and several more. If you combine all these transactions you will find that real estate is very expensive in terms of transactions.
Real estate is not mobile
This is one of the characteristics you have to know about real estate. Houses are constructed on land which is immovable hence the business too. It is customers who are renters or buyers that have to come to the place more so deluxe studio NYC of where the houses are located. It is only obvious that in this market, the goods being buildings cannot be moved. If tenants want a house in the city then they are forced to move their by themselves.
It is considered both consumption and investment product
If you are the renter then you are the consumer, while if you are buying then you are the investor. At this point you know what works best for you and to what interest you want achieve. However, people can decide to be both of the above where they buy the house and live in it at the same time.