From the beginning of time, our ancestors were leaving the traces of their existing. First living in caves, they created a simple way of life and decorated their living space with simple drawings. They gradually left that type of life between 30.000 BC and 15.000 BC, which create a foundation for modern real estate system. Even nowadays, we have some tribes experiencing a primitive way of life like our ancestors had.
Staking a claim
With the appearance of the first agrarian systems, people became more aware how land was important. Those who had a land and grow crops on it were in better position them people who had nothing. Later, the system of tribes was developed, and they were required to defend their land and sometimes make a payment to protect their borders. As the infrastructure developed, stronger houses were built, channels were dug, and eventually, people were creating more children so they could have a bigger working force.
The original protection system
Hunter-gatherers fully adapted to this tribal system but considering that tribal system of life was uncertain and unexpected. This meat that tribe could only support two or three families. It further developed the primitive landlord system. Considering that tribes couldn’t support more than three families, the tribes who had a good defense system were accepting families to live on their land in exchange for the rent. They were required to pay the homage to a lord or a king of the tribe. The leading family had ownership over the land, and later these farm villages developed into smaller cities.
Labor for protection system
In most countries, labor for protection system divided into two separate systems, such as taxes and tenancy. The royal family spread its wealth further to friends, making the deeds, which allowed the owners of the land to gather a revenue. The revenue produced by peasants who were living there. All people who were inside of one kingdom were required to pay a tax. Some kingdoms also required a military service together with taxes.
It is one of the greats things that happened to humankind. The use of machines freed many people from using a difficult labor. It gave them an opportunity to learn more and to develop some other skills. People who managed to jump the classes became middle class and blue collars, they were owning houses, cars and eventually radios and television.
Mortgages have been existing for a long time, and in the past, they only existed as an exclusive loan, which was given only to nobility. After the industrial revolution people became richer. They were opening bank accounts, and they could afford to buy many expensive things now. Further, this leads to a fact, that people were borrowing money, buying new houses, but at the same time, they were developing a real estate system.