Just like employment figures, petrol prices and home loan rates, the real estate market is not static. Nor is the market singular. Rather, the real estate scene is made up of many markets each moving through its own cycle.
When it comes to future-proofing your investment there’s no foolproof method. However, there are some key indicators for good investment which can be directly linked to the strengths and growth of other industries, such as employment.
New figures have recently emerged suggesting that today’s 18-year-old will have over 15 different jobs in their life-time, across five different career paths.
How does this affect the property market?
Changes in employment often necessitate changes in location. People relocating for work or in need of temporary accommodation for periods of tenure may require a more flexible arrangement for living circumstances than property ownership. It could be possible that more frequent changes in employment will make home ownership less appealing, putting a greater demand on rentals.
From a landlord’s perspective, it is certainly worth giving consideration to such a scenario – and accommodate the changing environment of the rental market.
With people’s working lives now taking shape in a variety of formats and arrangements, consideration to different leasing options may be a benefit to both landlords and tenants, who will benefit from flexibility in their living circumstances.
Areas of high employment will generate a high demand for property and will be a key consideration for savvy property investors.
Another consideration for landlords is in relation to both location and type of property. That is, how well will the property accommodate the changing life circumstances of a tenant? Is the property better suited to young, single professionals? Could it easily be changed to accommodate a growing family? And if it is clearly one or the other – singe professionals or family-orientated - is it in the right location to appeal to that particular demographic?
The demand for rental property appears set to remain strong overall. Whether you are expanding your property portfolio, or are eager to enter into the market, understanding where to buy and what to buy is the first step.
Your go-to people at this point are the property experts – the property managers and sales agents who live and breathe property markets and their cycles.