6 factors that affect the property market
There are various factors that can affect property values that all property investors should be aware of. An understanding of these factors can help you make informed negotiations on deals, and make your investment strategy a success.
What do the property investment experts think?
- Economics and employment
- Infrastructure and government spending
- Location of the property
- Land component of the property
- Population and demographics
- Supply and demand
How do economics and employment affect the market?
The flow and exchange of money or monetary values is referred to as the economic activity, or economics, of a particular suburb. This can include the spending habits of its population, the turnover of shopping centres, and the profit of banks in the area. The higher the economic activity levels are in a suburb, the more likely it is that people will be looking to buy, sell, or rent houses in the area, driving the market value in a positive direction.
Likewise, employment levels of an area play a large role in the market values. If an area has a low rate of employment, it is less likely there will be people generating a large enough income to be buying houses. This means that an area with more job growth opportunities has the potential for higher quality tenants and buyers, making it a good area for investors and investment properties.
Are suburbs with access to more infrastructures a better choice?
The building of public facilities such as hospitals, schools, public transport stations and roads is referred to as infrastructure and/or government spending read more