While it’s no secret the US housing market is not in a positive state, it has caused even more frustration for many first time home buyers .
One such example is with 25-year-old Alex Dorado who found out the house he was planning to bid on was already sold. According to USA Today, he lost more than a dozen bids before he found his current with a low-down payment Federal Housing Administration (FHA) loan.
The problem Alex faced is similar for buyers looking into the lower-priced house market where many of the homes have been hit by foreclosure. This also causes an evident competition and first-time buyers using FHA loans may be having the most difficult time when bidding on a house.
Because buyers using FHA loans are frequently low-down-payment bidders they are usually getting pushed to the bottom of the bid pile according to Brian Cross, a realtor for Keller Willaims Realty.
As first-time home buyers in the US have the main concerns in investing, Thailand’s real estate worries are due only to the predicted price increases. Although Thailand real estate law prohibits fee simple owners of land by non-Thai nationals, approximately there is a property boom. According to a report by Knight Frank construction and land costs are raising the final home prices. However, other sources have reported an oversupply of condominium units in Bangkok.
There is also speculation that Thailand could face a bubble economy due to the real estate business that has been rapidly growing. The Agency for Real Estate Affairs speculated that with 100,000 new units expected in Bangkok year, the economy will be in danger. The increase in real estate units has been far higher than the population growth and therefore a bubble economy has been expected in 2013.
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There is a risk always in investing property. The Real Estate Bubble is difficult to control. I wonder why there is no prevention before it happens, but once it happens the government will do everything to prevent the economic collapse then who knows if things gonna get better or worse?