There are several factors that affect the buying of real estate. The most important among them is the demand of the property. The demand for a certain property is created when its supply is less than the requirement. For example, with the passage of time the population has increased and there is a limitation of the land therefore people are demanding houses for themselves. A large number of investors are now buying the unpopulated and less developed areas and are constructing houses there. In order to buy real estate it must be within the purchasing capacity of the buyers. This is possible only in case if the price of the property is less and the buyer easily affords to buy it or the bank helps the buyers in buying real estate. The bank can help by giving loan to the person with less interest and mortgage rates. It can also facilitate the buyer by allowing him to pay in installments. But in certain cases we see that the government give loans and remove taxes to facilitate its people, but the people do not return the bank its money and ultimately the bank faces the financial crises. It also fails to give loans in future due to which a continuous decline in the economy of the country comes. Interest rate affects the purchasing of real estate.

At the time of less interest rate the demand for property would increase. More and more people will be encouraged to buy a particular area but this greater demand will again create an open competition in the market to buy accommodation at high rate. The prices of real estate keep on fluctuating between the low and high prices and there must come the stability to achieve stability in the economy. Similarly, the mortgage rate affects the stock market. In the days when the government decrease the mortgage price increases great activity of buying and selling is observed in the stock market and soon the activity declines due to the same problem of decrease of supply. Inflation affects the buying and selling in a way that it decreases the purchasing power of the people but at the same time it increases the selling of rental property. People prefer to take property on rent instead of paying of interest, mortgage and insurance. Sometimes it so happens that the value of the owned property declines and the buyer face a huge loss. Therefore, in order to cover this risk of devaluing of property people take it on rent. Time is another factor. With the passage of time the property usually becomes expensive and the demand for it increases.

Therefore many investors buy the property for long term and wait for in crease in its value automatically. All the factors that affect the real estate property affect both the buyer and the seller. A positive economic condition in any country encourages the investors to buy the property in that area. As the investors would buy the property than a rise in the prices of the property would be seen. This rise will again decrease the demand and vice ever. In order to achieve a positive economic state the government of the state should be stable and the authorities must plan good policies that generate income and resources for the country. Demographics is the data that tells us about the population, the age, number, gender, income and most common occupation of inhabitants of particular area. Demographics greatly affects the purchase of real estate. It is because the farmers who live in villages would always prefer to buy agricultural area for either working on it or doing investment in it. The demand for the agricultural real estate increases in particular country or area when that country faces either a crop failure or receives a large number of immigrants in the country.