There was a time when it was considered a prestige owning lands and houses. Only the richest of people were able to afford the lands for themselves. Owning a land or house was considered only for the richest of richest. Then the real estate market changed for good. More people were able to afford land and houses for themselves. Whether by taking loans or whether buying from their savings it did not matter, but more and more people were able to do it. Thus began the boon of real estate.
Real Estate Boon
The real estate market flourished. People everywhere wanted to rent and buy properties and more people were ready to sell it for competitive prices. The profits grew and as a result the real estate market saw great heights of growth and development. Then come the disaster that struck in the 2000s. Just like any industry which has a boon and a bane, real estate also had to go through ups and downs. One fine day the markets started crashing. All the prices for the properties of land and houses are starting falling down.
It was a good time for people who wanted to buy properties including land, commercial properties and houses. But it was a disaster for the people owning lands and other properties. There were no profits and they couldn’t even sell it to the price for which they bought the properties.
But later the market changed and once again it was difficult for people to own properties. Since many properties in the prime locations were more than affordable people opted for the option of borrowing money on the form of loan. While owning a property seemed to be good, these people ended up paying large amounts of money in the form and interest and monthly due. Look at here where, as a result they did not have enough money for their monthly expense.
While some opted to live in their means, most of the crowd opted for getting more loans, now in this case a credit card. There might have been options of just sharing a room by going for a roommate. This way rented places would have been more affordable. While sharing it with someone there was this advantage of only paying half the money. But many avoided it and went for the first option.
While the debt started increasing in the form of credit cars, store credit, post paid bills people started to run out of money for basic needs. Even when they were sick, people couldn’t afford hospital expense and even for medicines as their monthly expense was huge and their savings took a big hit.