.: Real Estate Investing with Demographic Reports
By:amabaie
Category:Home / Finance / Real Estate
Demographics and population trends influence almost every decision in modern life, from business planning to healthcare provisions, from education needs to fashion and style. Age, ethnicity, gender, income, mobility, employment, geography and other demographic factors determine the shape of our society.
Real estate is no less affected by the ebbs and flows of demographic trends, particularly income, aging, family situations and employment. Consider a real estate broker, whose livelihood depends on people changing homes. Economic mobility is a key determinant in the future of his business, as is the economic health of the region.
"I look to see how fast the economy is growing, and how many jobs are likely to be created as a result, to determine the resources my business will need over the next five years," says Terry Denoux, a Bend, Oregon, real estate broker.
Development planning relies even more on demographic data to determine priorities. The average age of the population is a major factor in the type of housing that will be required over the next couple decades.
"A young population in an area will require more single family homes with multiple bedrooms and plenty of space for children to run," explains Wendy Cobrda of Catosphere, a demographic data reporting company. "On the other hand, an aging population will need more hospitals, more medical clinics, more housing that requires minimal maintenance."
For investors, the stakes are just as high. Investing in commercial real estate, for example requires the ability to forecast where there will be a growing population, and/or where the population's average income will be increasing.
In fact, commercial property investment requires a deeper understanding of demographic data; it is not just the population trends that need to be considered, but the demographics of the competition. And even those cannot follow a set formula.
For instance, an entrepreneur looking to set up a new car dealership needs to consider where established dealerships are located and set up shop nearby. Car buyers wanting to compare similar models need to visit several dealerships, so they need to be close to one another.
On the other hand, an entrepreneur looking to set up a new hardware store, should look for an area underserved by the competition or where new residential developments will be opening up. Hardware shoppers can compare brands of similar tools within the same store, so ease of access takes on a greater importance.
On the topic of ease-of-access, road traffic patterns can also make or break an investment, especially near busy intersections in competitive markets. The demographics of traffic can add to the complexity of making a commercial real estate investment.
Understanding where to invest in retail properties is one of the main reasons that demographic mapping is such a popular service, Wendy Cobrda explains. "To visually see the movement of people and their spending dollars helps businesses 'see' where they should open their next store."
Demographic data plays a role in vacation rental real estate, too. "Do you buy vacation rental properties, or do you sell the ones you have now?" asks Steve Curtis, owner of FabVillas, a website listing vacation rental properties in Florida. "Well, that depends on how much disposable income people have for vacations and, more importantly, on the age of the population. A younger person is more likely to backpack through Europe, and stay at a hostel. An older person in more interested in comfort and privacy, which is what vacation rental properties offer."
It also depends on where populations are growing more, as well as where the affluence is growing. If an economic boom is happening in England and France, but not in the USA and Canada, a vacation rental in Spain might prove more useful than on the Gulf Coast of Texas.
"Business planning is just a shot in the dark without solid market data," explains Ms. Cobrda. "Demographic data reports and maps help businesses project market activity into the future, helping to avoid such catastrophes as building stores with no customers or storing a few million dollars of inventory that nobody wants."
Given the high stakes of real estate investment, whether in residential, commercial or vacation rental properties, demographic data reports and market segmentation data are even more important.
Article keywords: investment, real estate, demographics, data, population, marketing, vacation rentals
Article Source: http://www.articles32.com
David Leonhardt is a freelance writer. He wrote this article for Catosphere demographics data reports and Bend Oregon real estate broker Terry Denoux.
.: New Real Estate Articles
1). How to Find Foreclosure Homes
A foreclosure is the result of a homeowners default on mortgage. Most of the time, the homeowners are unable to maintain the premises and take on repairs.
2). Guide to Buying Property in Spain
The beauty and wonderful climate of Spain make it an ideal place for people around the world to purchase property. Exquisite Spanish villas are abundant throughout the country. There are numerous locations to choose from, each offering a unique environment for either a permanent residence or a relaxing vacation home.
3). Media Confirms Port Charlotte a Great Investment Opportunity
Media and journalism have the power to influence the success or failure of any industry. The reports carried by newspapers or other means of information can actually cause the rise or fall of prices and value in a specific industry.
4). Let a VA Handle Your Transactions While You Take a Vacation
You have been working hard, its time to reward yourself with some time away from the office. Aahh, but you have real estate transactions that will be coming in soon, so how can you possibly take some much needed and deserved time away from the office?
5). Fixer-Uppers: Project Management 101
The goal in real estate investing should be to make the most profit in the least amount of time using as little of your money as possible. This article explains how becoming a Project Manager will help you with this end goal.
6). Host an Event to Sell Your Property!
Sometimes stimulating interest in your investment property means that you have to shake things up a bit when it comes to marketing. One rarely used but highly successful real estate investing marketing ploy involves hosting unique events at the investment property to bring traffic and potential buyers to the property.
7). Success with Florida Investment Lots
The trends and patterns in the real estate industry are often defined by the lifestyle patterns and the general standard of living of people.
.: Top Real Estate Articles
1). Real Estate Math - Do You Know These Simple Formulas?
How much real estate math do you need to know if you are investing in real estate? There are computers and calculators for calculating interest rates or amortizing loans. What you need to know is a few simple formulas for determining if a property is a good investment or not.
The Real Estate Math You Don't Need
The gross rent multiplier is one formula you don't need.
2). Flip That House Style Real Estate Investing
I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more. The bathrooms are completely redone with new tile, tubs, showers, sinks and more. The living rooms and other areas usually have walls taken out to open up the floor plan and usually carpet is replaced with some type of hardwood flooring.
3). VASTU AND FENG-SHUI QUESTION AND ANSWERS - RealAcres
QUESTION If my flat is built in 1987 and my main door faces North, is my flatprosperous ?
ANSWER From the year 1984 to the year 2003 , any house or flat that sits at the south and faces the north and has the main door at north has a very good fengshui house till the year 2003. However the external topography will also playa part to the family's health and wealth.
4). How to Sell Your Home in a Slow Market
The real estate market has slowed down in many areas that were booming over the last few years. Sellers in those areas got spoiled. It was only necessary to put a sign out front, and buyers came. Homes sold in a matter of days. This is no longer happening. If you want to sell your home in a slow area, what do you do?
Go Back to Marketing Basics
Whether you are selling your home yourself or working with a realtor, the answer is the same.
5). Understanding Mello-Roos When Considering a Purchase
Part of the process of evaluating the decision to make an offer on a home in a newer development is understanding the costs. Mello-Roos are one issue that is popping up more and more.
Understanding Mello-Roos When Considering a Purchase
The process of real estate development has become a much more complex one in many parts of the country. The idea of buying some land and building a few homes is a bit naïve these days.
6). How To Find A Real Estate Agent
It's easy to find a real estate agent. Just put a for sale sign in the yard and wait for the phone to ring. The question is, how do you find a GOOD real estate agent? You can start with newspaper.
Pick up the Saturday or Sunday paper - whichever day they have all the homes for sale in your area. You can also collect a few real estate guides to look through.
7). Taking Title When You Buy
Taking title to a home can seem like a boilerplate event during escrow, but it is very important. The prime question is how you take title.
Taking Title When You Buy
If you are a first time buyer, you are probably wondering what taking title refers to. It is not the act of accepting a piece of paper from the seller. Taking title refers to who is listed on the title and HOW they are listed.