External Factors and the Real Estate
Assignment 1.3
External Factors and the Real Estate Industry
By
Karen Chapman
11 November 2012
Assignment 1.3
Index:
1. The demographic environment:
1.1 Cultural diversity trends and developments Page 3
1.2 Demographics of own area, vs. national demographics and trends Page 3
2. The economic environment: 2.1 The current economic environment Page 3 2.2 Socio-economic factors Page 4
3. The political environment Page 4
4. The technological environment Page 5
5. The competitive environment Page 5
6. The legal environment: 6.1 Regulations pertaining to property ownership Page 5 6.2 Regulations pertaining to land use controls Page 6 6.3 Other rules and regulations Page 6
Conclusion Page 6
References Page 6
Assignment 1.3
Introduction:
The real estate industry is hugely affected by external factors, which have the effect of either having a positive or negative impact on us as real estate agents. When the economy is good houses sell and buyers are able to qualify for bonds. When the economy is in a downturn then houses stay on the market for a lot longer. Buyers are more reluctant to take the plunge and buy property. Repossessions increase and banks often become more reluctant to grant bonds.
1. The demographic environment
1.1 Prior to the repealing of the Group Areas Act the residential housing market was segmented by race. Each race group was legally only allowed to stay in certain areas and neighbourhoods.
After the repealing of the Group Areas Act and the democratisation of South Africa after our first free and fair elections for all races in 1994, different race groups and ethnicities started living together in the same neighbourhoods for the first time.
With South Africa being welcomed back into the international community we also now have more clients from around the world.
This has
External Factors and the Real Estate Industry
By
Karen Chapman
11 November 2012
Assignment 1.3
Index:
1. The demographic environment:
1.1 Cultural diversity trends and developments Page 3
1.2 Demographics of own area, vs. national demographics and trends Page 3
2. The economic environment: 2.1 The current economic environment Page 3 2.2 Socio-economic factors Page 4
3. The political environment Page 4
4. The technological environment Page 5
5. The competitive environment Page 5
6. The legal environment: 6.1 Regulations pertaining to property ownership Page 5 6.2 Regulations pertaining to land use controls Page 6 6.3 Other rules and regulations Page 6
Conclusion Page 6
References Page 6
Assignment 1.3
Introduction:
The real estate industry is hugely affected by external factors, which have the effect of either having a positive or negative impact on us as real estate agents. When the economy is good houses sell and buyers are able to qualify for bonds. When the economy is in a downturn then houses stay on the market for a lot longer. Buyers are more reluctant to take the plunge and buy property. Repossessions increase and banks often become more reluctant to grant bonds.
1. The demographic environment
1.1 Prior to the repealing of the Group Areas Act the residential housing market was segmented by race. Each race group was legally only allowed to stay in certain areas and neighbourhoods.
After the repealing of the Group Areas Act and the democratisation of South Africa after our first free and fair elections for all races in 1994, different race groups and ethnicities started living together in the same neighbourhoods for the first time.
With South Africa being welcomed back into the international community we also now have more clients from around the world.
This has