PH Real Estate - Six Predictions for Real Estate Properties in the 21st Century, Tips for Prospective Buyers

As a buyer, you would certainly welcome predictions and tips on buying real estate properties in the 21st century. There may be key changes that you don’t know of, such as technology updates, new real estate brokers, updated rules and other relevant information. 

Being aware of these predictions will put you ahead of the game. 

1. Technology 

Real estate companies are now investing in technology to facilitate their business and bring their ‘products’ quicker to their prospective clients. Experts predicted that holograms, other Internet applications, and similar technologies may be used to communicate with clients in the future. The Internet of things (IoT) would be widely used too in the 21st century. IoT is a system where real estate companies use data collected from all devices using the Internet to connect their businesses to prospective clients. 

This system allows anything that has an on and off button to connect to the Internet and operate based on the needs of its consumers. 

An example is this:

You’re planning to buy a mansion in a posh subdivision. You have contacted the owner of the subdivision but he informed you that there are no sellers for the moment. If the owner of the subdivision is using the IoT, you will be automatically notified when a previous owner is selling his property, or that a new house is being constructed in the subdivision, without the owner doing the task. The machines will operate by themselves to perform their designated tasks. This would happen because of the IoT. The list of houses are integrated into the Internet, so when someone lists his house, this is fed to the system automatically. This goes too with new houses. 

When new houses are constructed, the data are fed into the system, and clients can even observe how the house is being built and how far the development is.

This is because as soon as construction of the property begins, the process is connected to the Internet. When supplies are low, the computer automatically orders supplies from the supplier, and notifies the owner, or when it’s time to pay the workers, the computer will withdraw money from the bank and pays the workers.

The owner will just monitor the process, while everything takes care of itself. It’s an automated system that each item performs its task with less human intervention.

Tasks will be done automatically by the devices included in the IoT. Hence, you don’t have to call the owner, time and again, to ask if there are houses available for purchase. You will be informed through the IoT system. 

This system exists today in some areas in other countries, such as traffic. With IoT, the “stop” and “go” commands of the traffic lights are interactive. They adjust according to the flow of vehicles, which are currently plying the road. 

It doesn’t have a pre-timed stop and go system, but operates based on the traffic itself: if traffic is heavy the “go” signal continues. If traffic is light the “stop” signal is triggered.

2. Higher prices of properties

Because of crucial factors, such as population growth, higher cost of labor and building construction, the prices of real estate properties will even go higher. The demand is increased but the supply has still to catch up with it. You may want to buy your properties now, while prices are still less expensive. A house worth 100,000 now may cost 150,000 after a few years.  So, grab the chance now and purchase properties that you can afford. You can always sell them, in the event that you don’t want them.

3. Increase of mortgage interests 

The mortgage interest is predicted to increase to around 4 to 5%. Houses are still big business in the future. This should prompt you to buy your house now to avoid this increase. The interest of your money, which you have saved in the bank may not be higher than 5%. Hence, you will be losing money instead of gaining because when you finally buy the house in the future, the mortgage increase will eat up the bank interest of your money.

When interests in mortgages are increased even more, it may be difficult for middle-income families to buy homes.

4. Larger mortgages 

There’s one positive prediction that you can be happy about; you would be able to obtain large mortgages for more expensive homes. You can finally buy that grandiose house you have been dreaming of.

The downside of this is that you will have to pay higher monthly dues to. Thus, avail of the maximum mortgage amount, only if you can pay your dues without fail. When you’re not able to pay it, the interest will bury you deep in debt.

5. More foreign buyers

Foreign buyers are here to stay. They can give you fierce competition in buying your new home because – typically - they are willing to pay more than local buyers. So, you may have a tough task bargaining with the seller.

But foreign buyers can only buy houses and not lands. Therefore, you still have the upper hand as a citizen.

6. More new homes

There will be more new houses and condominiums that would be constructed to respond to the increasing demand of new abodes. The number of builders are on the rise too because real estate is big business.

You could purchase a new house, renovate your old house and re-sell it. No one’s telling you, you can’t sell your house if you wanted to change your environment and move in to a better and more comfortable home.

Conclusion

With these predictions, you can plan accordingly. Predictions #2 and #3 are reasons enough for you to buy your house now. Why wait for next year, when you have enough money to purchase one now? 

In the 21st century, be ready too for the Internet of Things, which will revolutionize the way you purchase real estate properties. You need to adjust with the times, so you can optimize your money in buying properties.

Tags:    home buying tips