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Many variables will influence your property investment decision when considering your options. Demographics is just one, but it has a critical role in adding value to your property portfolio through making good choices. Learn more about how demographics will influence your investment decision.

Demographic Factors Affecting Real Estate

Real estate demographics data are quantifiable data that analytically describe a community. A study of demographics will include age bracket, income, crime risk, school quality, employment opportunities, and population growth, all of which will impact your investment and the returns you can achieve. 

Research the Real Estate Demographics Before Investing

Demographics are critical to your investment research before buying real estate because they are the next best thing to a crystal ball when predicting the future value of real estate investments in an area. For example, a location with a decreasing or increasing population is a good predictor of the future market. 

Another key demographic is the crime rate. This information will give you essential insights into your prospective rental pool and the possibility of increased rental costs such as maintenance. 

While we would all prefer to live in a low-crime rate area, many new investors make the mistake of overlooking this essential real estate demographic. As such, they increase their risk exposure and their ability to improve their portfolio with capital gains. 

Job Growth and Real Estate Values

Research into the job market of an area is another factor to consider. If there are no employers or none are hiring, then the location is less appealing as a place to live. You may find that you can not charge the rent levels you need to create a positive income stream. 

Carefully examine the employment and income data for an area, and extend your search into the surrounding areas as well. Many people are prepared to sacrifice travel time for slightly cheaper rents if the commute is reasonable. 

Rental Versus Owner-Occupied Demographics

The ratio of owner-occupier versus renters real estate demographic data is another indicator that can help you achieve more value in your real estate investments.

Owner-occupiers tend to take more pride in their property’s appearance, so streets with more owner-occupied homes tend to appear well looked after and more appealing. A house on a good-looking street will generally fetch a higher price than a street full of rental stock whose landlords put little value in the property’s general appearance. 

As you can see, researching a prime real estate investment can be overwhelming to investors entering the market. Fortunately, you can ensure you purchase a well-positioned property by talking to the experts who are already successful real estate investors and can help you do the same. 

 

 

About Ian Webb

 IanWebbInvestments.com is actively investing in Edmonton area real estate for a number of years.
His mission is to provide an above-average return on investment (R.O.I) for his investor partners and himself.
It is truly a win-win way of investing!

 

Ian offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Ian.

For more information about Ian and his investment program,
please call (250) 470-1354, or visit  https://ianwebbinvestments.com