No doubt as a home owner you have heard your piece of real estate or other properties referred to as investments. The truth is that real estate is a market in which there is real investment potential, but in order for it to be considered a growth industry there are several contingencies that need to be met.
If nothing else, the recent economic crash has demonstrated to everyone not only how intertwined real estate is with the rest of the economy, but the fact that real estate is susceptible to large contractions. As with any industry in which shrinkage can happen, so to can growth. Real estate training courses (much like those offered here) in the future will point out that before the great crash, real estate was in an unprecedented boom, one which lasted for many years and made many people rich.
The odd part of that boom was that it was taking place literally everywhere in North America. Now that it has ended, a new market is being shaped, one in which specific aspects of real estate will dictate its growth as a market, according to many real estate agents. Let's take a couple of the most important of these aspects and look at them in a little bit of detail.
As always, the primary indicator of property as growth positive is location. Owners of most homes for sale can be assured that their property will continue to increase in value for the foreseeable future, and perhaps indefinitely. Like Montreal, Vancouver, New York City, and other major metropolises. Toronto is economically sound and out of room for expansion. People will always need a place to live and conduct business, and that means growth for investments in the markets in these areas.
On the flip side of the coin are cities and towns without much growth potential. They lack a solid population base, or it is shrinking, therefore investing in real estate there is not a good move. It's not something that an owner of a home for sale locally has to worry about and take it into account.
Economies on a small scale will dictate the growth potential of real estate as an industry. One need only look at Fort McMurray in Alberta for a good example. The town has some of the most expensive real estate in the country, despite having no appeal outside of the high paying oil jobs. Once the oil is gone, prices fall, or humans finally convert to other energy sources, this market is in for a rapid contraction. People will be flying out, looking to relocate and so on. Of course, until that happens, the market in Fort Mac will be growing for some time.