The current worldwide boom in residential real estate prices is the biggest bubble in history, according to a disturbing new report in the Economist magazine. In spite of the scams, rising prices and other factors visiting the market, there is so much demand running through every individual and business requirement, especially in the United States. It’s never a dormant market globally.
Lending and home purchase…
US real estate market which is one of the largest and the most happening has experienced one of the largest increases in home prices over the past year, with the average cost of a home rising by 12.5 percent. Surprisingly, the trend seems to be the same across several other countries of the world. Other countries have showed gains even higher than the US in the last year, with prices rising by 23.6 percent in South Africa, 19 percent in Hong Kong and over 15 percent in Spain and France.
It’s believed that the global housing market is undergoing correction and no economic recession is anticipated.
Why this global rise
Mainly because the other forms of investments are turning out to be riskier. Experts say that the trend is expected to continue not in one but in many countries. Whether you are a businessman or an individual with anything else as your profession, there is at some point when you reach out to real estate requirements in the form of land, apartments, residence, villa, commercial place, etc. Owning space in prime localities is a higher investment al together.
Not to say the least, small size companies in the real estate and lending businesses are making hay when the sun shines. Their credibility is questionable and of late the mushrooming of such companies has begun to take shape in the form of regional services that go serving the customized needs of individuals. But what’s their background And how reliable are they
Global news on lending, mortgage and real estate
One of the affluent media giants, The Wall Street Journal reports that investors and other mortgage buyers are starting to battle with lenders over taking back loans that borrowers are unable to repay or that contain underwriting errors. This is a reminder to beef up their underwriting criteria.
Another globally relable news source The New York Times reports that mortgage fraud climbed to $1 billion last year from $429 million in 2004, with experts attributing to lenders’ dependence on brokers and appraisers push deals through. The lending industry is being scrutinized for not undertaking more due diligence, considering that it uses numerous means to identify fraudulent loans.
A word of caution…
As real estate or loan requirements are almost inevitable, it becomes a difficult task when seeking help. Though there is dire need, the credibility of companies has to be completely dissected before any investment is made with them. Big companies with nationwide presence can be better alternatives as reliable sources. However, there are others who are small yet render trusted results. All said, a little probing into their background before investing will result in fetching returns at a later stage.