The Global Perspective on Real Estate Investing: A Deep Dive
Real Estate investing is not bound by geographical locations; it is a global affair. In this blog post, we explore the global perspective on real estate investing, paying particular attention to how supply and demand laws are impactful.
The Three Pillars of Real Estate Investment
The law of supply and demand in real estate is influenced by three key factors; demographics, immigration, and job availability. These factors fluctuate causing variations in the demand for housing, hence impacting investing choices. Let’s delve into these variables for a deeper understanding.
Demographics | Immigration | Job Availability |
---|---|---|
Population growth or shrinkage, mostly influenced by birth rates. | Population rise or fall due to the migration of people. | Local economic growth and prosperity levels, primarily influenced by employment rates. |
Global Shifts and Impacts
Many developed economies experience shrinking populations as birth rates continue to decline. Without immigration, the demand for housing falls. Japan, for instance, has over 11 million vacant homes due to population decline. In contrast, China’s real estate problems demonstrate how over-supply can also be problematic, with an estimated surplus of up to 30 million homes. Populations in countries like Brazil are also decreasing, making foreign investments in places like Miami or Toronto attractive due to currency value changes.
The Role of Immigration and Population Growth
Aside from global trends and shifts, the role of immigration and population growth in real estate investment cannot be ignored. These factors ensure the steady growth of economies as well as real estate values. Countries with growing populations attributed to immigration, such as the U.S. and Canada, are attractive destinations for foreign investments. These investments, despite starting small, can eventually lead to larger scale investments as investors familiarise themselves with the market.
Overall, the global perspective on real estate investing is a broad canvas painted by demographics, immigration, and the job market. As potential investors, it’s critical to consider these aspects and how they play a role in supply and demand for real estate properties globally.
Stay connected and discover more about my work in real estate by visiting and following me on various platforms:
Real Estate Espresso Podcast:
- 🎧 Spotify: The Real Estate Espresso Podcast
- 🌐 Website: www.victorjm.com
- 💼 LinkedIn: Victor Menasce
- 📺 YouTube: The Real Estate Espresso Podcast
- 📘 Facebook: www.facebook.com/realestateespresso
- 📧 Email: [email protected]
Y Street Capital:
- 🌐 Website: www.ystreetcapital.com
- 📘 Facebook: www.facebook.com/YStreetCapital
- 📸 Instagram: @ystreetcapital