Knowledge is power and understanding how key elements of current and future markets may play out is invaluable to the savvy investor. Often it can be hard to depict what information is both accurate and influential to the individual. Through understanding how demographics provide value insight into future markets, investors can be guided into making well informed decisions about their future investments.
Completing your own research is a valuable way to ensure, along with professional trusted advice, that you’re well positioned to make investment choices which are beneficial for your own personal circumstances.
Population growth and age distribution are two key considerations which are fundamental when it comes to the demand on the rental market. An increase in housing, services and local amenities will be vital for a growing area, and the type of amenities will be directly linked to the generations within those areas. Australia has an aging population, and with that that nature of the certain areas may change.
Considering this in terms of tenant demand, it is important to understand the connection between population growth and infrastructure development. We can get a better understanding of the future tenant needs when we consider preferences of potential population groups. With this in mind, we can make more strategic choices when it comes to tailoring current or future portfolios.
Economic trends influence property markets directly and a lot can be considered from areas with strong and diverse job markets. Local economies can help investors gauge a level of stability as they, generally, prove to be more resilient long term.
House size, land size, proximity to things like public transport, schools and supermarkets, healthcare facilities are all factors to consider when it comes to the housing preferences of tenants. Considering, also, whether the market is already saturated, or whether there is opportunity for growth will prove beneficial as vacancy rates shift.
We can look to the past to consider how migration and urbanisation have impacted on growth and how it will in turn affect future regions. The fabric of Australia is ever evolving, and the nature of the communities that make up our country is a valuable tool to utilise when considering future investment planning.