From Cave Drawings to Flats
Real estate investment has become very popular in recent years due to rising real estate values and lower interest rates than general purpose loans, so where did it start?
The oldest recorded history of the real estate industry has been found in cave drawings. Inaccurate records of the hosts, which misled historians, made you think that the caves were “rented” to the tribe homo erectus.
Although it was later realized by historians that this was not quite true, historians confirm that shelters could have been a kind of currency exchange among ancient peoples.
The development of property rights to land, along with record keeping through the invention of writing, created the first “defensible property” and marked a pivotal moment in real estate.
The industry may have been designed by our ancient ancestors, but human greed to sell a property for financial gain was the driving force of this evolution.
Real estate development and marketing became a popular method of income and was quite common during the middle ages.
Ownership was a symbol of wealth and was one of the main ways the wealthy secured their wealth. As an established industry, the real estate market developed and came to the United States with the European colonists. Mixed with the opportunities of the new world and the foundation of the free market system, they planted the first seeds of American entrepreneurs that turned the industry into a money making machine.
Recent History of Real Estate Investments in the World
Real estate as a whole is sensitive to the ups and downs of the economy. During the 19th and early 20th centuries, the combination of the capitalist economy and growing population made land use expansion a hot market.
The economic prosperity of the 1920s led to a huge increase in real estate, especially housing, but in the United States, which was the pioneer of real estate investment in the mid-1930s, millions of people were unemployed and demand for real estate of all kinds dwindled. The second world war, which would soon follow, created an explosion of accumulated demand for technological innovation and new construction.
Great Depression and II. Mortgage stability introduced by law in the wake of World War II greatly aided the massive expansion of suburban housing that followed the war.
The enactment of investment partnership regulations in Europe and the USA heralded the new phenomenon of the home buying and selling industry. The real estate investment industry took on a whole new dimension in the 1960s with laws that combined the best features of real estate and equity investment to create a new way of generating income.
These laws made it easier for large investors to pool resources for real estate projects. Legislations have changed over the years, giving rise to a much larger real estate industry and as you know, expanding industries are always looking for new markets.
As a result, there are much greater opportunities for those who want to invest in real estate today.
In addition, the market grew even more with the TV series and real estate marketed by the cinema industry from the background. The diversification of television programs has led to dozens of home improvement programs. Since then, the entertainment industry has taken the appeal of reality TV, combined it with the popularity of the real estate investment industry, and ran with it.
While the spike in show showings based on home repair, home remodeling and do-it-yourself projects has spurred thousands of real estate investments in recent years, such high ratings continue to provide a strong marketing arena for real estate professionals.
At the same time, the economic recession of the 1980s had the double effect of keeping stock market gains low and increasing the number of home foreclosures. With an abundant supply of foreclosed homes for potential refurbishment in the US and Europe, golden opportunities for property investment have emerged.
More recently, real estate investment successes and dreams of financial freedom have come true, making profitable real estate investing an attainable goal for anyone with an average income.