It’s not surprising that the prices of apartments have gone currently making it hard for a person to own a house more so if you’re a middle income earner. Available data shows that prices of houses have tripled for over two decades with houses around urban centers topping the list. This has not spared US house pricing that has doubled for the last ten years. It’s worth noting that housing costs in the US has increased by more than 7 percent in just two years with Zillow indicating that you’ll have to spend more than $289000 to acquire a medium-sized house.
Even though it looks higher for an average US citizen, the cost is much higher in big cities and other well-established towns. Comparatively, this is the reason several countries worldwide are crumbling with many challenges of poor housing. Although it may be true that higher costs indicates that real estate business is booming, exaggerated price has denied numerous people an opportunity to access good houses.
Brookfield Asset Management spokesperson revealed that the world has witnessed an increase in demand of houses something that is pushing houses price higher. In simple terms, real estate is being affected by an overrated demand on one side and low supply in real estate market on the other side. Interestingly, higher prices of houses are blessings in the disguise since it shows that investors have the opportunity to make huge profits when they invest in the business. Even as economic experts see high demand as the major factor that is pushing housing prices up, nobody should underestimate the role of land in determining the cost of a house.
Logically, most houses are going at an exorbitant price because land has become more expensive. Mathematically, you should expect a price of land to increase since the two are directly proportional. The increase in the price of land is attributed to population pressure that has pushed the demand of land too high. Another key point to note is that housing costs could become cheap if governments around the world could provide financial aid such as subsidies to support real estate. It’s good to note that these measures were previously applied by some nations to reduce the cost of housing.
According to real estate experts, prices of houses in the US increased when the government decided to replace subsidies with taxes. Not to say that the places where houses are located also have an impact on the amount of money that you’ll be charged. For example, you should expect to pay more for a house that’s located in big cities and towns since they are seen as centers for employment opportunities. With rapid growth in terms of infrastructural improvements, better health facilities and good transport networks, cities have attracted a significant number of people that have later raises house costs together with its respective values.
In like manner, the nature of a house itself that includes the design details could be the reason you’re paying more. For example, you should pay more attention on the shape of your dream home since most houses that come with lots of corners are considered more expensive. In addition, houses that offers first-class experience, including a swimming pool, an outdoor kitchen apartment and not to say nothing of a huge deck will force you to dig deep in your pocket. Comparatively, a size of a house will also determine the amount of money that you’ll have to pay. That’s to say, when you wish to own a bigger house such as a two-story building, it will cost you more dollars than a small house. In the same fashion, a house that was built from bricks is more expensive than others built with different materials.
There is no secret that a foundation of a house is important when it comes to durability your apartment. In terms of foundations, a slab foundation which is considered as the cheapest choice can be improved through adding a basement. Although there is no harm in using standard materials in your construction, but if you’re a real investor who wants to earn more by making tenants to pay more, it will be good to upgrade the status of your construction materials. Equally, it will be important to go for a house that does not have a ceiling when you don’t have more money at your disposal.