A local real estate office that affiliates with a nationally recognized brand doesn’t have to work as hard to establish name recognition thanks to national franchisor (
How will the real estate market function in 20 years?
Analyzing various aspects :
1) More leasing – less owning: The generation after 2 decades will find it ridiculous to buy a home. The reasons being
A) long term financial commitments,
B) frozen life style for a considerable time.
C) long commitment for maintenance & taxes
D) rigid work place commitment.
So what would they prefer ? They would prefer
A) less augmented financial commitment
B) updated life styles with the latest gadgets, car , & tech toys.
C) to travel places and work with out geographical constrains.
So what would they do?
They would spend a major part of their salary for life style.
For home , the majority would go in for lease.
Who would lease them ?
The promoters – investors – bank collaboration will be a major contributor to lease.
Bank & investors would prefer the lease mode because it’s less riskier though the returns are less.
So after 20 years a majority will live in a professionally managed leased housing units.
2) The type of houses: The houses after 2 decades will be more electronically advanced than a brick and mortar unit.
It might be a metal fabrication structure with electronic activation to change the internal structure at the click of a button.
The house might be built in standard concrete shells with advanced composite material for customising internal structures.
The basic idea would be an easy to updatable home interiors to be in par with fashion and lifestyle.
3) Mortgage: My son might laugh at me if I tell him that I bought a home and repaid it for 20 years. He would ask me sarcastically if this home is worth the hardship I underwent for 20 years.
Just an imagination, but I’m sure this will be the case because I have argued with my dad recently, I wanted to update to iphone6s, he argued what is wrong with the present phonr and asked me to buy some gold.
But finally I’m going to buy the gadget.
The same scene will repeat after 20 years, I will ask my son to buy a home – he would prefer a Ferrari – you who would win, it’s his money.
So in 20 years long term mortgage may be thing of the past. Banks will rework to make the loan shorter and lighter.
Here is where my first point might come again – banks lease – regain the ownership after a period and lease it again.
So in short in 20 years the following might happen in real estate system
Healthy banking system – Loan stress free individual – Environmentally friendly Housing units.