What Factors Influence Real Estate Value?
When we say that real estate is a dynamic market, we mean that it is persistently changing. Certain factors cause these changes in this market. Let's talk about how real estate value is affected by some macroeconomic and microeconomic factors. Government Policies Government is a body that has the authority to govern a country and form policies that will be beneficial for its economy and people. But sometimes, they fail to perform that way show completely adverse results. Let's go through some of these macroeconomic policies and government tools that can affect property valuation . Interest Rate The interest rate set by banks is to determine the cost of borrowing money from the banks. If you borrow some money from the bank, you will have to pay interest until you return the actual amount. The interest rate of a country rises, then the businesses limit their spending's in the market. People tend to save more as now borrowing money is expen...