What drives the returns of housing? Much of the dynamics of property prices can be thoroughly explained by basics such as demographic change. In London for example, smart investment means accounting for numerous factors from how interest rates could affect demand for property investments in the future to analysing the current market trends in buying and selling.
How Is Housing Affected by Demographics?
Demographics are certainly changing: Unemployed Generation Y, the aging Boomers, and the generation sandwiched between childcare and eldercare affect housing drastically. The key variables governing the supply of new housing include the cost of construction materials used, the prices, cost of financing, the land, and the housing stock. The age distribution is the most basic demographic factor. Ideally, areas with a high population are great spots for buying investment property. Properties for sale do well in such areas because dense population means higher demand and greater need for housing.
Understanding the Demographic Factor
A deep understanding of the demographic factors that affect housing such as gender, income, migration patterns, age, median income, population growth, and race of a given area enables a seller to anticipate market trends. These statistics are often overlooked, yet they fully affect how housing is priced. More so, such understanding enables investors to identify the kind of housing that is in demand and position their homes for sale. Knowing a certain area has a high population of aging people or has more young families plays a big role in distinguishing the right buyers. It is necessary to understand that demographic shifts can have a major impact on the trends of housing for several decades. Understanding the ups and downs of a housing market and demography protects you when things turn south. Demographics are critical tools of study for describing price appreciation.
Positioning Your Sale
Pricing your property correctly is always critical to the sale. If your asking price is extremely high, your greatest achievement is that you will help sell other houses in the area. Overpricing a house for sale in London means that you may receive low offers or none at all. It is imperative to contact an agent, such as a qualified real estate agent from No Mortgages Ltd, to ensure that you price your house fairly. That way, it will be easy to have more buyers compete for your property. That is how you drive your sales price up. Whenever there is competition from buyers, a property seller can expect higher offers that are above the asking price. Connecting with a credible realtor who understands the housing market conditions ensures that your home is priced reasonably.
Billionaire investors sound Brexit alarm for property market: but how does this affect your house price and the supply crisis?, Telegraph.co.uk
EU referendum: London property market faces slowdown ahead of Brexit vote in June, ibtimes.co.uk