As the number of individuals and companies involved in the real estate market continues to grow, what attracted you to real estate investment? There are many different reasons to become involved in the worldwide real estate market some of which we will cover below.
The world of real estate has changed significantly over the last 30 years or so with the UK in particular changing to a home ownership population. This has opened an array of different avenues for those looking at a new challenge for their investment funds. Spotting the latest trends, seeing the latest hotspots before others follow suit and actually picking the best investments for the long-term is not easy. In some ways the real estate market is seen as a “slow burn” because while there are opportunities to make short-term profits the vast majority of returns are created with a long-term investment strategy.
While the likes of housing and offices attract significant money in the world of real estate there are many other areas to look at. There are different types of housing, different styles of offices and many more developments such as retail outlets. There are literally billions upon billions of dollars being ploughed into the worldwide real estate market on an annual basis. We are seeing the creation of new shopping centres which take in flats, offices and retail outlets. These are developments which will last many years into the future and in some areas of the world they will actually prompt further development.
Whether you are looking for a new challenge, perhaps looking to balance your portfolio or you think you may have found a new platform for your creative development, there is one thing all of us need to have. That is the long-term goal of making money!
It is all good and well building great developments, renovating derelict properties into beautiful swans but at the end of the day these developments and these investments need to make money. There are obviously some forms of property development which on the surface may put assistance before profit, such as social housing, but at the end of the day these developments and these investments still need to pay for themselves. It is only the craving for profit at the end of the day (or indeed rental income in the longer term) which will spur investors and developers to push back the envelope even further.
Learn by your mistakes
As we have mentioned on numerous occasions, if as a property investor you ever believe that you have “learnt everything” that is the beginning of the end for you. Trends change, styles change and those who believe they have placed themselves ahead of the markets and ahead of the latest trends could be in for a great fall. You only need to look back at the property markets of 10 years ago, 20 years ago and 50 years ago to see the change. Many of these markets are unrecognisable to the one we have today and the same will be said in years to come.
The greatest property investment returns are more often than not created using long-term investment strategies, targeting long-term profits but also accepting new challenges and pushing creative development to its limit. We are all very different, have different views and ideas for the future which is what makes the worldwide property market what it is today – a kaleidoscope of opportunities for those willing to do their research, wait for the right moment and take at least some form of calculated risk.