by Homy Invest
Realestate industry is going through very crucial stage where some analysts consider the market as a dead end for investor’s money where most have lost their unrealistic profits from economical bubbles most times.
Our viewpoint is totally opposite where we see the current market situation is a correction tool to clear-out and get back the money to it’s real value and crash investor’s greed…
Bad Realestate Market to Crash Investor’s Greed!
This is what’s happening all over the world, the financial crisis have been caused by investor’s greed to gain money by pricing items madly higher than it’s really worth…
As they are greedy and real estate market is the safest investment for undeserved money (and they know, they have got more than their items deserved or worth) the real estate market is large enough to absorb that bubble to certain time, and then it will burst to correct market margins as it will eventually due to the shortage of cash-flow with lower & middle classes…
Currently, the market has numerous luxury units for sale and rent; however, ordinary people cant afford it, so the prices will be pushed down unless government gets involved by either renting or buying those units. This scenario is likely to happen in MENA and Asia, but not in USA or Europe…
MENA governments will buy or rent most of those properties to keep the market running; however, it’s an injection of bail-out money to those greedy investors due to the small size of real estate market in terms of units number and number of people who can afford those luxury properties…
Alternatively, in the other half of the world, they follow different style where they let the market define itself by creating new solutions to customize properties to people affordability as they have got large real estate market. Moreover, investors will reduce the prices, lower the luxury to acceptable level to enable more people to afford the unit either by renting or buying…
Last but not least, our stated opinion above will annoy many realtors and investors, but this is how we see it in HomyFinder.com where we see the real estate industry is the corrector for other economical bubbles not the opposite as media channels stated in 2009 financial crisis and this is why they call it “financial” but they displayed it as “Mortgage Crisis or real estate bubble”
