Investment Strategy – Keeping an eye on changing demographics
Staying ahead in the realm of property investment strategy means paying close attention to the world around you.
Although the global financial crisis was a firm reminder that we cannot plan for everything, taking note of economic changes and researching monetary patterns can go a long way toward ensuring profitability.
High employment and a healthy economy often lead to fuller pockets and more commercial activity.
However, not only do global markets, interest rates and demand have an impact on potential returns, other more subtle factors in investment strategy also play a role.
The changing landscape
In recent years, there have been many shifts in roles, power and ability. The once thriving markets of Europe have taken a downturn, while Asian nations like China have been developing at a rapid pace.
People are waiting longer to get married, producing a larger market of single men and women without children.
Caution in an uncertain global economy has prompted many people to remain in their parents’ home longer, or make purchases with friends or family members.
These shifts have produced very different buyers or renters to which your property needs to appeal.
Practical application
Different cultures have different wants when it comes to property – communal cultures, for example, often have several generations living under one roof.
Those here to capitalise on Australia’s booming resource sector will likely have their own set of property needs.
And what is important to a single woman with a high income in her property could be quite unique to other buyers.
It is important to establish where the demand is coming from, in order to target your best source of returns.
Knowing your audience will help you to create marketing materials and ensure efficient turnover.
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Good article, and points understood. However, elaboration on those points would be more useful to readers.
Communal living versus smaller families (or DINKS). Both are on the rise. So should we buy an apartment or a house on land? If buying a house on land, do we look for 3-bedders or should a 4-bedder with 2 bathrooms be a minimum?
Asian countries are developing rapidly and indeed, communal living is more in vogue in Singapore for example, compared to here. The density in Singapore is high however, few people can afford landed property. We often find many people living in a small flat.
What is unique to a single woman with a high income versus say, a single man with a high income? Can we generalise that high income singles have a set of unique requirements? If so, what are they?
This was a great article.
I think a few more points could have come in here regarding the larger number of single, older people (increase in divorce rates leading to more single house holds) as well as what modern families are looking for. With the baby boomers retiring what will happen? Will they move in with the kids who just bought a 4×2 home or will they still want their own space as they are still adults?
It's going to be interesting to see what changes in thinking migrants will bring with them as well as what they will pick up from migrating here. They may be more comfortable living in apartments close to the city, if they are from metropolis's. Moving to a 4 bedder in the silent burbs may not appeal. Or will it go the other way and migrants seek to buy the big house on the big block for prestige/pleasure and to set up their children? It's interesting and a lot of fun to see where the trends are heading in Australian housing.
fWord – I think a single woman on a high income would be looking for security, high end finish, the ability to be near their social network. I think a single man would probably be looking for the same, maybe wouldn't be as concerned with the security aspect. That's my 2 cents :)
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Exactly – we all have seen and heard of kids staying at home longer, families staying under the one roof more and more.
I think we will see a lot more homes being renovated and converted to make way for this. Granny flats, addditions, splitting of homes etc.
Interesting times ahead.