Thursday, March 1, 2012

The Real Estate Market in 2012

The real estate market has two sectors one is the investment oriented real estate and the other principle residence. The rental real estate is nothing but the investment real estate of buying a property to get rent. The fiscal policy has a great hindrance to buying a primary residence. The suppression of floating interest loan will also heavily impact on the real estate market especially on the first time buyers. The first time buyers are the vital tonic for the healthy market.
 The favorable tax exemption may increase the demand for the new home market. The taxation strategy should be changed; the taxation on real estate capital gains realized on additional housing units should be exempted. Stamp duties on real estate market should be revised and the evolution of the property and some protocols should be user friendly.
 If at all revised; the real estate market will be pushed in to the bear market. Since the government has changed its policy the banks are reluctant to finance the purchase of properties which could lead to the crash of the real estate sector. Apart from rich investors the common public cannot afford much in the current scenario. The sellers are reluctant to lower their price and the buyer expects the price may go down; hence the market is pushed for high inertia. The people are willing to invest in a tangible asset and they are more focused on the properties than the stocks or the banks this is the supporting factor which hold the real estate market now.