The Real Estate Cycle – Population Drives Increase

There are only 3 things in life that everyone has to have to live: Water, Food and shelter. Shelter is obviously the keyword in this article. Shelter represents the place in which everyone lives. Real estate and property investing is the only tradable good that is a prerequisite in everyone’s life which is why it is so unique. You can’t survive without it and those who are without a home unfortunately struggle day to day trying to get it. It is a common link between us all which is why people love to invest in it and why we struggle to detach ourselves emotionally.

Because a “home” is what everyone needs then what happens if there are more people?… We need more homes. With an ageing population and the worlds technological advances people are living longer and they generally want to stay where they are. This means the worlds cities will continue to go up in size and price – it’s inevitable! There is a lot of ‘doom and gloom’ spoken about in regards to the worlds property market but when you use your common sense the only way property prices drop significantly is when people stop making money. This is why I believe the unemployment rate vs population growth is the main indicator in property prices.

GDP stands for gross domestic product, the total value of all final goods and services produced within that economy during a specified period. GDP also shifts as a result of the unemployment rate and population increases demand.

Regardless of the house price debate it is essential, when buying and selling, that you do your research and find a Real Estate Agent that you can trust. Many Property Managers and Real Estate Agents, in Melbourne particularly, don’t have experience in Real Estate themselves as they’ve never invested.

This is my property manager and they have made my property investing easy when It has been tough in the past.