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What factors influence the price of a Paris flat
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What factors influence the price of a Paris flat

If you want to buy apartments in Paris or to rent cheap apartments in Paris, you should learn some elements that affect the house's worth. We used to think location as the only factor that affects house’s cost, but it isn’t.

Factors that influence the price of a Paris apartment or a house:

1. Increase of real income – people can spend more on buying apartments. Paris citizens have know that when the average salary grows house's prices will rise as well. If the number of unemployed people rises or salaries decrease, the demand for buying houses will decrease.

2. Mortgage interest rates affect the annual payment for a mortgage, that is usually the largest part of houseowner's spending. If the interest rate is high, people would rather rent flat in Paristhan buy it.

3. Spivvery is one of the main reasons of house's value growth. Many property spivs buy apartment in Paris trying to earn some profit selling it later on a higher price. You will be surprised to know that apartment rentals in Parisare the main replacements to buying an apartment, so they influence price also.

4. Expectations - if people expect appartment’s prices to decrease they'll rather sell it to gain more money. Most people buy an apartment to live in, and decreasing prices will encourage homeowners to rent apartment in Paris rather than buy it.

5. Supply of homes is fixed because it takes time to build houses. This factor also influences prices for Paris apartment rental. Shortage of houses built explains why home’s value have risen faster than earnings.

Other factors to consider:

- house condition

- comparable home sales price

- distance to hospitals, schools, stores etc.

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Категория: Статьи | Добавил: publreg (27.05.2010)
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