No one knows when the first time anyone dabbling in the sale of real estate took place was, most simply assume that as long as people have been around, the sale and trade of lands and homes has been taking place, though the manner in which it gets done has changed some over the years. There was a time when the government offered wonderful homesteading options, and also times when the trade of a few pigs and couple milk cows would be enough for you to land a new farm. Today, technology has changed the way real estate gets handled, banks have strict guidelines regarding mortgages, and the government has created all kinds of rules and regulations.
Unless you have a large amount of money in your savings account, you probably plan on using a mortgage to purchase a new home or piece of farm land. Most people think that mortgages are a fairly new thing, but that’s not the case at all. Historians have found records of people using the tool to secure land dating all the way back to the 1400’s. Back than the weather used the financial tool. At the time mortgages weren’t used so much for purchasing land, but rather as a method to make sure it stayed in the family. The nobility would arrange for a mortgage which ensured future generations would continue to own the land. This allowed the people in power to stay in power for multiple generations.
It wasn’t until the Industrial revolution that mortgages started to get heavily used by the general population. At the time, much of the United States had been developed through homesteading agreements the U.S. government created with pioneers. Since much of the land was already owned, people who wanted a place needed to purchase it out right and the banks got involved, steadily creating the system of loans and mortgages we are now familiar with. During the Great Depression innovative individuals such as the famed developer William Levitt used mortgages that the government guaranteed to purchase and develop large parcels of land which provided people with homes and helped the economy reestablish itself. Despite the hard times, Levitt knew that by purchasing the property, he’d make money. He recognized the great investment opportunity when it presented itself.
Although some of the technical details involved with the buying and selling of real estate has changed over the years, one thing that hasn’t changed is that real estate continues to be a great investment. When you look through the history books and study all of the people who managed to become successful entrepreneurs despite their humble beginnings, you’ll notice that the one thing they all have in common, besides determination, is a history in real estate. They knew that the purchase and sale of real estate was a great investment.
Lately people have become a little gun shy about investing in real estate, and while this can be understandable, you should know that it still remains a sound investment. In fact, now is a great time to purchase some land as an investment. Home prices are still a little low, a good piece of property can be purchased quite reasonably, but the market shows signs of improving. There’s every reason to believe the property you purchase today, will help you earn a significant amount of money in a few year’s time when the market regains its footing.
While on the topic of real estate history on March 25th William E Wood and Associates lost a true icon to Hampton Roads real estate history. Chris Shaughnessy who lost his battle with cancer, He was always positive and served his clients to the very end. He will be missed by all.
By Don Maclary
Online Target Marketing your homes for sale
Don always works hard to get the best deal for his clients, from the $1,000,000 + transaction to the first time home buyer. He is dedicated to serving their interests and ensuring the process is smooth for them.
~ Ryan, Real Estate Pro