The big headline was, in 2009, the global financial crisis and its aftershocks. Now, as we enter 2010, a sense of stability and predictability, a ‘new normal’, is returning to the international real estate sector.
One of the most telling aspects of the 'new normal' is the retreat of the speculator buying for quick re-sale profit. The speculator has been replaced by a new type of international real estate investor - a ‘post crisis’ investor - with a different mindset and goals.
Below is a brief summary of the 14 characteristics of the post crisis international real estate investor
- More informed and will demand better service from the industry
- Will not make decisions based on thin slices of information but will demand openness and transparency
- Skeptical of promises made by developers on their websites and brochures
- Wary of pre-construction properties, preferring to purchase completed real estate with amenities they can enjoy right now
- Will want to understand the financial health of the community before they invest
- Will expect substantial discounts on the market highs of 2007
- Will haggle, even when it comes to high-end properties
- Will be drawn to real estate that is a bit low key
- Interested in property that generates revenue in the short term.
- Motivated by lifestyle factors (not just financial gain)
- Focused on regions with a low cost of living, good health care and safe streets
- Will avoid areas with over-supply risk and copy-cat developments
- Will seek safe haven investments and tax friendly environments
- Interested in contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy
With change comes opportunity
In order to succeed in 2010, property developers will need to innovate their products and their marketing to embrace the mindset of the post crisis real estate investor. Those that do, will earn their way out of trouble. Those that don’t will suffer.
If you are interested in buying property, Intellichoice has a range of real estate in Australia, including Brisbane, Sunshine Coast, Gold Coast, Melbourne, Perth and Sydney. To find out more about how we can help you with your next property investment or if you need help with finance, speak to one of one of the property and finance advisors at Intellichoice today.
Posts
