Whether you are a seasoned real estate investor, first-time buyer, or somewhere in between, there is always something to learn at The Property Show. We attended the Spring 2012 edition of the show on March 31st at The Pantages Hotel, and there were two sessions that really caught our attention. What follows is a brief synopsis.
Paradigm: Jobs + Growth = Real Estate Sustainability
Don R Campbell is a Real Estate Educator, Researcher, Investor & Best-Selling Author, as well as CEO of the Real Estate Investment Network (REIN). REIN provides Canada's most current real estate education program and economic research. He took the "Mainstage" early Saturday morning to share with attendees his overarching principles of how to invest in real estate.
The Foundations of an Investor's Market
It all begins with understanding The Foundations of an Investor's Market, which consists of (1) Economic Development; (2) People; (3) Infrastructure; and (4) Sustainable Momentum. One puts this framework into action by studying forward-looking key indicators of a target market, such as jobs and future economic growth. GDP and job growth inevitably bring population growth to the target market, if the target market has a good infrastructure. Newcomers have not yet established credit and must rent, which reduces vacancies and drives rents up. Typically around 18 months later, a proportion of renters may decide to buy, resulting in an increase in housing demand, which drives property values up as well. It is also crucial that the target market have potential for sustainable momentum (i.e., the market growth cannot be temporary).