The answer is SUPPLY & DEMAND. Essentially these are the main thermometers of a property market. When you think about it, it makes sense. If there are more people looking to buy property, and hence pressure is put on the current supply of properties available on the market, then vendors can ask for and generally achieve a higher price and market moves up. If, on the other hand, there are more people selling homes than there are people ready and willing to purchase them, then purchasers can bargain hard on price and the market will either remain steady or begin to fall. It's that simple.
So what does this mean for the average investor? Well, the main point is if your goal is to build a property portfolio that stands a good chance of strong future growth and a low vacancy rate, look for areas that have a strong underlying demand for the property you intend to purchase. Look for factors such as job creation and low unemployment. One of the biggest tell tale signs of an area that is ripe for future growth is large infrastructure projects, particularly those that are undertaken by the local, state or federal governments.
Other factors which can also have an effect on the value of a property are:
Here at Hillcrest we look to take advantage of as many factors that will enhance the value of your investment as possible. This includes regions that are receiving new airports, roads, services, amenities, increases in tourism and obviously government expenditure.
