Investing in Local or International Real Estate Markets

Samuel Oskys02/11/20195min
If you’re interested in investing in a property to fix and sell, buying a home for possible Airbnb use or renting out a studio flat, it’s vital that you gain a better understanding of the real estate market itself.

The real estate market is constantly evolving. Property prices go up and interest rates change daily, so understanding how these elements work may be beneficial to the investor in the long run.

Markets vary from Nation to Nation

Real Estate varies from nations to states to cities, it’s local. Each city has its own unique marketplace, its own buyers, sellers and even trends. In some cases, there are rules and regulations also differ with each area code.

If we take for instance marketplaces in the US, the average listing price for a family home in Ohio is around $200,000, but the average listing price in San Francisco is close to $1million.

The marketplace in the UK is very similar if you take for example the average listing price for a family home in Central London which is around £2.5million, in contrast with the average price of a property in the South of England which stand at approximately £280,000. In regards to the property in the UK, prices may change extremely due to the Brexit.

This is a small example of the difference in real estate markets under single nations.

Although the global economy, mortgage rates or other trends may be affect prices, it’s vital to be connected with what’s going on in your local market, as your purchase will be influenced mostly by elements in that specific market.

Real Estate Markets

There are multiple types of real estate markets, and each one should be approached in its own specific way whether you’re choosing to invest, make an offer or negotiate a deal.

Balanced Market

  • Property prices don’t rise or fall much
  • Property buyers and sellers have negotiation restrictions
  • Appraisals are likened to offers
  • Properties on sale are in line with buyer demand

Buyer’s Market

  • Properties usually take longer to sell
  • Larger property listings available for buyers
  • Less competition for buyers
  • Lower offers can be made by buyers
  • Negotiations on sales prices and closing costs
  • More marketing is required by the seller
  • Lowered price points may be required by the seller

Seller’s Market

  • Properties sell quickly
  • Demand at higher price points
  • Sellers can choose who purchases their property
  • High competition for buyers
  • Harder to find property for buyers

Real Estate Market details

Real Estate Information – Information regarding specific real estate markets can be found in your local Realtors organisation which enables investors to search individual cities and real estate markets. Local real estate agencies may also offer assistance on market reports, usually on a monthly basis. If you choose to get help through an agency, they will be more than happy to help if you’re prepared to make numerous investments in property.

Real Estate Investment – Purchasing properties then refurbishing them to rent them out is one way to invest in real estate. Another way is to invest in real estate investment trusts (REITs) or through crowdfunded deals. Both strategies work well in most marketplaces.

Reducing risks during Recessions – By increasing your liquidity and diversifying your strategies may help you safeguard your real estate portfolio during recessions.

Final Thoughts

The real estate industry is not as easy as many think it is. It’s unpredictable and it can be affected by global or local situations. But as an investor, you can learn to be smart by being informed about the various markets, whether local or international. Ensure that you reduce the risks of failure by diversifying strategies and finally ensure that you have a solid financial foundation before making any movements within the industry.

Samuel Oskys

Sam Oskys is a British born technology enthusiast, automotive lover, artist, author and editor. His inspiration has been his life experiences; his evolution and adaptation in society and life itself and as a result, translated these emotions into art and words within his work in this duration. Writing about trendy, technology, automotive and lifestyle-related material is what he mainly focuses on and he’s currently one of the authors for High Worth Citizen. Contact Sam at +357-22029786 ext: 6115 or by email at [email protected] for editorial related questions.

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