In good years and bad, property is a safe investment. It is, however, an area where it’s better to think long term than to try to turn a quick profit by betting on speculation. Here’s an overview of real estate trends, to help you better understand the opportunities available.
The real estate market is influenced by many factors. The strength of the economy, the unemployment rate, demographics and consumer confidence are just some of the elements that impact this sector, both for new builds and resale. Should this lead us to believe that real estate is an unstable market? On the contrary. Over the long term we see clear growth, slow but constant. That’s why real estate is considered to be a safe investment, as long as you give it the time to do its work. Nevertheless, it’s important to remember a few basic rules, and to understand how market growth works.
Although yearly statistics and projections are good indicators, Samir Bachir, broker, speaker, real estate coach and president of OSE Real Estate Coaching, recommends having a long term vision. “When you look at statistics from the last 15 years, you can see that overall, sales as well as supply and demand stay constant over time,” he says.
In other words, buying property is an excellent investment. But don’t forget that it’s the passing of time that brings the value up, through inflation. “You also need to keep in mind that several factors can have a major influence on that value, in particular location, and the demand for a certain type of property,” specifies Bachir. So, if you’ve targeted the right market – for example a neighbourhood with a high potential for growth given its growing popularity – and the right type of product, you’ve got a recipe for a strong return.[……]