Real Estate: How It All Begun?

The human society has come from far in terms of land and home ownership. This transition has been nothing short of evolution of human lifestyle. Man moved from a hunter- gatherer to a farmer and finally to a highly organized complex society with fixed abode.

The cave man

The first real home of a man was the cave. This is evidenced by paintings, stones axes and odd carved trinket, found in the caves.

 

REAL ESTATE HOW IT ALL BEGUN

Our ancestors lived a simple life, that of a hunter-gatherer. They steadily, however, gave up being hunter-gatherers, and became farmers. This marked a major transition to agrarian society. This transition was a precursor to home ownership.

The farmer

Man graduated from a hunter- gatherer to a farmer. This shift led a settled agrarian society ruled by tribal chief.  A stable and secure community, with improved farming methods saw the population balloon.

The renting system

The increased population, required place for expansion. This led to fights between neighboring tribes. A well organized army to protect the community became a necessity. Tribal leaders had to look for way to raise and maintain powerful armies to defend their communities and consolidate their power. To achieve this, tribal leaders established the renting system. Their subjects were to rent land from the tribal leader. As some tribal leaders become more powerful and conquered other tribes, they forced the conquered tribes to rent land and to pay taxes.

Landlords

With time the agrarian society evolved into a more complex society.  An outstanding phenomenon was establishment of kingdoms. The king was the most powerful ruler in the community and owned the entire community land. The king deeded the land to his close friends and relatives, who in turn rented the land to the peasants. Both the landlords and peasant farmers had to pay taxes to the king.

This form of arrangement saw emerging of tradesmen and merchants who owned no land, but earned their living by trading their unique skills to the community. As this class of merchants grew in wealth, it was able to put up houses that it rented out.

Mortgages

Mortgages

The advent of industrial revolution and democratic governments completely changed the face of land ownership.  These twin occurrences led to subdivision of land that was sold in a free market.

Mortgages become more prominent. For considerable time mortgages operated as restricted loan given to nobility. Industrial revolution freed mortgage as banks started giving loans to common people to buy their own homes.

Mortgage, like any good thing, has led to overindulges Individuals have taken too much mortgage then they can service. This has caused a meltdown in market with disastrous after effects that have reverberated in the entire world economy.

People who liked this Post also read

  • Essential Tips for First Time Home Buyers
    The home buying tips will fill the gaps in the buying process. These steps are really helpful to people and saved a lot of them from buying the wrong home at the wrong time....
  • Interest Only:Home Mortgage
    Interest only mortgage for homes is a good option for those people who are planning to buy a home but don’t have enough money to buy it .As for first ten to fifteen years a borrower only pays interest money interest only home mortgage is a good option bec...
  • 8 Signs Of Increase In Property Prices In Your Area
    Above mentioned eight indexes are necessary to judge your neighborhood is on upswing or not. Property market normally remains consistent and not change quickly, however by using above mentioned facts one can not only keep in eye on the rates in his area b...
  • International REITs
    Currently, there have been a lot of changes in the global real estate market. Considering both, the developed and developing foreign markets, the REIT and REIT-like structures have started to gain immense popularity. There has been an increase in the oppo...
  • Emerging Global Real Estate Markets
    Global real estate market is emerging as necessary tool for property management and related issues. All investors and brokers are now more conscious, as many countries are adopting REIT structures and there is a hope for its immense growth in the near fut...


is an experienced journalist.

Leave a Reply

CommentLuv badge

© 2011 Loan Mortgage Credit!. All rights reserved.