Just like other hardworking citizens, majority of university graduates in the US have dreams of buying homes. Most of them want to make a leap into home ownership once they secure their first jobs, but this doesn’t come easy. There are so many challenges that recent graduates face. Some of the compelling reasons why recent university grads cannot afford a home in the US are highlighted below.
1) The first reason why university grads cannot buy homes is because they do not have enough pay. Some get low paying jobs which cannot allow them to meet their daily needs or allow them to save toward buying homes. On the same note, students who have modest jobs have limited purchasing power or investment capacities.
2) The second reason is that university grads face difficulties in accessing mortgages. This is linked to the fact that most of them cannot meet the borrowing requirements as stipulated by lenders. It is a fact that most of them have poor credit scores, they cannot raise the required equity, or show proof of savings toward down payment. This is especially true when buying real estate in these cities.
3) Lack of adequate finances is not the only reason that denies recent university grads the opportunity of buying homes. Most of them have poor understanding of real estate investment or financing options. And, this denies them the opportunity to leap into home ownership once they secure their first jobs.
4) Another reason why recent university grads cannot buy homes is because they are tied up by multiple student debt loans. Those who are employed work towards repaying their loans and they have little or nothing left for buying homes.
5) Lastly, the high cost of homes and property investments discourages recent university graduates from buying homes. Most of them shelve the idea of buying homes until they feel financially secure to make the leap towards home ownership.
There are several reasons that led to the US real estate collapse, essentially, what questions would a university test have about the US housing collapse? It is important to understand the housing bubble to be able to elicit factors that play out in the real-estate market. It is from this point that you are able understand the detrimental effects that a collapse of the market can bring about. Market correction measures, and how it can trigger a chain of negative effects. Having known this you can tell whether the region will get a soft landing, or a hard landing. The strength of the real estate market is overall yardstick used when analyzing the impact of housing collapse, on a national or global scale.
What questions would a university test have about the US housing collapse? Generally, the state of the real estate market should be evaluated before and after, was the collapse caused because the real estate market is manipulated, or the market forces play out as in a free market economy. It is also important to look into the factors that caused the housing bubble, what were the policies that the housing market operated under? Evaluate the demand for credit Prior to the collapse, Was the risk premium charged worth as per the market rates? What was the saving culture during and after the housing bubble? Analyze its implication for the industry, and the economy in general.
The other questions would also involve the buying process, whether it is simple or complicated and how does it affect the real-estate market? What role did the Federal Reserve play that led to the housing collapse? Explain some of the exclusionary policies that facilitated high credit and the volume of money circulating in the economy. These are some of the questions, which look into details of the housing industry.