CROMWELL, Conn. — Story by Sakib Hossain, Cromwell High School
Inflation has affected all of us, but business owners are suffering from it the most.
According to the International Monetary Fund, “Inflation measures how much more expensive a set of goods and services has become over a certain period of time.”
The aftermath of COVID has left us with the highest inflation rate in the United States since 1982. Experts say that housing prices will fall 15 to 20 percent off peak price since we saw in June 2022 due to high mortgage rates, which was another reason for homebuyers to hold off. In the end, this has affected real estate investors.
Syfur Rahaman states that he started to feel it a couple of months ago when he would list his property and was not getting good feedback or not getting an offer, that is when he realized the market is really going down, therefore he needed to be careful.
He decided to switch up his plan and the thing he is doing differently now, is looking at the comps- real estate comparables- to make sure he has a strong comparable to other houses in the area.
That being said, if the house has a value of $500,000, Rahaman will put the price at $50,000 less. Therefore, if the real estate market keeps changing, he would still have the room where he doesn’t lose money.
Rahaman gives advice that the best house to invest in is the starter home. Within the real estate market those houses are still a good investment. He is hopeful that it will get better, but no one really knows. If the interest goes down, then obviously the real estate market will go back up.
According to Forbes Advisor, homebuyers are retracted from applying for a mortgage since it doubled in 2022. With extra predictions, the rates will exceed 11% by the year's end.
When opportunity strives for one group it often takes the same opportunity away from another group. Many business owners like Syfur Rahaman have gotten a big hit due to inflation.
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