Real estate financing

Every piece of real estate is unique, in terms of its location, in terms of the building, and in terms of its financing. This makes pricing difficult, increases search costs, creates information asymmetry and greatly restricts substitutability. To get around this problem, economists define supply in terms of service units, that is, any physical unit can be deconstructed into the services that it provides. Housing stock depreciates making it qualitatively different from a new building. The market equilibrating process operates across multiple quality levels. Further, the real estate market is typically divided into residential, commercial, and industrial segments. With the development of private property ownership, Real Estate Industry in India has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Specialists are often called on to valuate real estate and facilitate transactions.
Real estate economics is the application of economic techniques to real estate markets. It tries to describe, explain, and predict patterns of real estate prices, building production, and real estate consumption. The closely related fields of housing economics is narrower in scope, concentrating on residential real estate markets as does the research of real estate trends focus on the business and structural changes impacting the industry. Both draw on partial equilibrium analysis (supply and demand), urban economics, spatial economics, extensive research, surveys and finance.

There are different ways of real estate financing:
• Governmental
• Commercial sources
• Institutions
A home buyer or builder can obtain financial aid from savings and loan associations, commercial banks, savings banks, mortgage bankers and brokers, life insurance companies, credit unions, federal agencies, individual investors, and builders.
Individual investors constitute a fairly large but somewhat declining source of money for home mortgage loans. Experienced observers claim that these lenders prefer shorter term obligations and usually restrict their loans to less than two-thirds of the value of the residential property. Likewise, building contractors sometimes accept second mortgages in part payment of the construction price of a home if the purchaser is unable to raise the total amount of down payment above the first mortgage money offered. In addition, homebuyers or builders can save their money using FSBO in order not to pay extra fees. :leader:

Very interesting Intro on your part. R U specializing the Indian market and if so, where or which States do you suggest to be the better options for Investors who has the money and also, for those who may want to seize the Financing bit abeit partial or just a quarter only?

I am with the Thailand regions... and mainly with the exclusive locations where money is made so both Developer and Investor/Owner gets to make where we, Realtors and with the Developers, we also make without doubt or hesitation with buoyant properties we focus on in benefiting the Investor turn either as Buyer occupant or Rentor for whom we also manage to lease on long term to temporary residents in Thailand.

YB.