Successful sales in the real estate industry might seem to be a matter of luck sometimes. However, it's not always so. One strategy is by doing some research before making a decision.
It is important to research the specific neighbourhoods where you are looking for a property that will fit your needs. Research can help give you an idea of what values are currently being pursued by other homebuyers in the area. It can also tell you about future trends and show you which neighbourhoods have the highest demand for housing.
Read on to find out about some property facts!
1. Investing in real estate
Companies and businesses might go bankrupt or default on their debt during recessions and economic downturns. If your portfolio is made up of stocks and bonds, this can effectively wipe out your entire investment.
On the other hand, even in the worst economic conditions, you will almost always be able to sell a property. Investing in real estate is an excellent way to hedge against the risks of financial markets. To do so, you might want to consider consulting or working with a property lawyer first.
According to Randle & Taylor Barristers and Solicitors, a property lawyer is a professional who helps in buying, selling, and renting properties. They are also responsible for drafting legal documents for these transactions and other related aspects.
What about the US property market crash?
The American housing market is a very dynamic and ever-changing market, and is one of the most important in the world, with the market size estimated at USD 3.69 trillion in 2021. It's not just about buying and selling houses though; it's about people's lives, their homes, their neighbourhoods.
We probably all remember the US property crash, which was the period of time in the early 2000s where the housing market in the United States crashed. Specifically, in the mid-2000s, there was a ‘housing bubble’ that led to a recession.
The origins of the crash came about from unprecedented growth of the subprime mortgage market, where people who had bad credit history or no credit history were approved loans.
This was caused by many factors, including too much speculation, predatory lending, and high-risk loans.
2. Australia had the biggest houses back in 2009
According to CommSec's Home Size Trends Reports, Australia had the largest new homes in the world in 2009, with an average of 248 square metres.
While Australia has since fallen behind the United States, we still have the world's second largest new construction market. As of 2018, Victoria led the battle of the states, with new home sizes still exceeding 240m2.
3. Avoid the number nine when selling your property
Pricing an item at $19.99 instead of $20 creates the illusion of a bargain, a trend that began in the 1880s and continues to this day. However, times have changed, and most buyers actually begin their property search online.
Pricing a home at $499,000 rather than $500,000 might not be good advertising. When filters are used, you will miss out on buyers looking for properties priced at $500,000 or higher. Meanwhile, a $500,000 listing will appear for buyers on either end of the price range.
4. Lucky numbers in real estate
Keeping with the number theme, house numbers and pricing can have a surprising impact on how much interest a property receives. Many Asian cultures, most notably Chinese, consider the number four to be unlucky, while the number eight is particularly lucky.
Because the sum of the individual numbers is four, this cultural quirk can even apply to a property with a house number of 31 or 22.
5. Some trivia about Japanese real estate
Looking for a beautiful character house in Japan? In contrast to almost everywhere else, Japanese homes lose value over time.
This means that a 20- or 30-year-old house is nearly worthless, even if the land on which it sits is not. The end result? Half of all Japanese buildings will not survive their 30th birthday!
6. What are the fastest growing property markets around the world?
According to https://www.statista.com/, Turkey had the fastest growing property prices in 2022 Q2. Prices increased by 160.6 percent from the previous year.
- Slovakia recorded a 25.5% house price increase
- Czechia recorded a 23.5% increase
- Iceland experienced 22.9% increase
- Estonia, the United States, Hungary and Latvia all also experience similar increases in housing prices.
Does this mean you should go and buy property in these countries? Well, given they have had such dramatic increases, you may be buying in at the top.
Real estate is an interesting space because it is a high-stakes industry that influences the lives of a lot of people. It has the potential to create significant changes in the future.
Before investing or making a purchase (or a sale), you might want to do some research first. You may also consult a property lawyer to make sure you get sound advice and meet your legal obligations.