Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Free-market lots are defined as individual property lots that any home builder can build on. The owners of free-market lots can pick the builder of their choice to construct a home on that particular lot.
Instead of meeting the requirements of those already looking for shelter, the free market serves the needs of the commodity known as housing and sets the price accordingly. Indeed, the way the free market is handling the housing industry may make investors quite happy.
● People are leaving small villages and farms around the world and moving into cities. A lot of work is also done here.
● Thus, demand is constantly increasing, especially in upscale areas.
● Supply and demand may or may not be catching up, but banks prefer to lend using real estate as collateral.
● Thus, developers can hoard products and not put them on the market even if supply is larger than demand as long as banks continue to offer loans.
● With current global interest rates so low, banks are loaded with cash and eager to lend money rather than call it in.
In actuality, property prices are determined by the free market. The demand is rising. It possible to increase supply as well, but this supply might or might not show up on the open market because it could be hoarded. House prices cannot decrease as long as interest rates are kept low and the banks are willing to participate in this. Additionally, governments won't permit prices to fall too much because many voters also own homes. Instead, they'll take steps to stabilise the market, or keep it from falling. All these become attractive factors for investors to invest in free market lots.
On the other hand, free market lots will be flopping in areas where there are strict rent control policies or other government programs are present to interfere with the free market, or areas with land use regulations, zoning laws, building codes, lawsuits limiting the building of apartment buildings, “Open Space” laws, and large areas of land put off limits to development.
