8 Reasons why there will always be property market

No matter how much the property market becomes restricted, homeowners will always want the same things: to spread their wings and look to new property horizons.

And it is this desire that you can take advantage of.

You see, with homeowners opting to move house every 5 to 7 years, there will always be property investments on the market, begging you to invest and make them into a rental property.

In essence there will always be a supply. It is just a case of understanding the reasons homeowners want to sell and harnessing it.

Know this secret, and searching for a new property investment will be easier than you think.

Home is too small

Our favourite. Families have outgrown their ‘starter houses’ and want somewhere bigger and better to shelter their expanding family.

Now there are two ideas you can take from this. One to be the willing investor to enable them to move on and find their dream home (remember estate agents are struggling to sell 1 property a week – you’ll be a god send when you come to invest). Or two you can be the one to offer them that bigger home.

Yes, it will be rented, but you will essentially be freeing them of the responsibility of owning a property. Plus, when they want to move again – which they will - it will be much easier for them the second time.

Upgrade

People will always want what they can’t have. If they live in a 2 bed terraced, they will secretly want to live in a 3 bed detached. And so on and so forth.

It is all about expansion… which you can give to them.

So instead of dreaming of these bigger premises, you could rent it to them and they’ll be more than happy to do so. Why? Because renting is still 20% cheaper than having a mortgage.

Fix

This works under the same concept of buying a pair of shoes. In the shop they looked great, but now they don’t look so good.

Now transfer this feeling into a property, and the first thing any homeowner will want to do is correct it. You see, it is one thing to say you can do without a back garden. It is another to actually experience it.

Job Transfer

This is probably the most common reason you will find. After all, are we not a nation who moves with the job?

Well, we are. And considering that in many cases this new job will require a relocation the last thing they will want to do is pay the expenses of commuting.

This is where you come in.

You can either invest in their current property or you could be the helping hand on the other side. The one that helps them to turn their current home into a rental property, whilst enabling them to live closer to work with your rental property.

Personal Relationships

Getting married, moving in or worse breaking up can often result in either both or one of the partnerships needing to sell.

Why? Let us put it to you plainly:

• One party may need to buy out the other and may not have the cash readily available to do so
• The property may not be sustainable under one salary
• The property could hold bad memories for them both. So with neither of them wanting to live there, selling is the only option.

Neighbourhood

A neighbourhood is built on the people and the industries that are based there. So whether a town has changed for the worse economically, socially or physically, people will want to move.

Saying this, their desire to move doesn’t always mean there is no rental demand for that area. No it can be purely personal. So if you do come across one of these – do the research and see if there is still a rental property opportunity there. If there is, don’t be afraid to invest.

Retirement

The last thing you want to do when you retire is sit around and do nothing. You want to be active and in control of your life.

This may be the reason why so many people – once they hit retirement age - seek out locations that have got an active-adult community: golf, club houses, social gatherings and weekly summer barbecues… the perfect community for anyone who is over 55.

Or you might find the opposite scenario.

After years of living a busy city life, they may just want to retreat into the country. Away from the bustle and the noise, but to somewhere more relaxed and quiet.

Either way you can give them a helping hand: a beautiful rental property in the country or access to a thriving over 55 community.

Cash in equity

Many homeowners after years of watching their properties appreciate in value, and not receiving a penny of it, want to sell. Plain and simple.

They feel, what is the use of owning a property if it cannot give them something back in return? So they sell, sell, sell to get a piece of their properties equity.

Now place many of these under our current financial situation and their motives may change slightly. With their purses feeling the pinch of the credit crunch, one of the easiest assets they can access is their property.

But here lies in the next problem. Many estate agents are only managing to sell 1 property a week, meaning the market is slim of buyers. And the longer it takes their property to sell, the lower its value will fall.

So when you come along offering to invest, they’ll be more than happy to take your bid. They’ll be thankful that they can finally access their properties equity – especially if they plan to invest themselves in a smaller cheaper property.

And would you believe that these are just a few of the many reasons that homeowners choose to sell? Incredible.

It all just becomes a question of: now that you know your market and know what their motives are, what do you do with this information?

Easy. You begin investing that’s what!

Caroline Hornsby is a professional copywriter with vast experience in the property investment market. Writing for property seminars, property investment courses and providing advice on the best property investment opportunities in the market today.

Article Source: http://www.thecontentcorner.com

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