What Makes For A ‘Future-Proof’ Real Estate Investment
Surely all real estate is future-proof, right? Well, yes and no. Some real estate will depreciate, such as abandoned homes or manor houses that fall into disrepute. However, on the opposite spectrum, you have real estate which only has an upward trajectory in terms of value. What makes these types of property future-proof? Well, a few things such as location, cultural view or importance and its design.
The location and the future location
Every real estate opportunity should have two locations on it’s description. The current location and the location it will be in 10-20 years from now. For example, there are some villas and mansions in the hills of California that can boast about their size and features. But they cannot boast about their location. Sure they have a good view but they are secluded, far from grocery stores, and commuting to work will take a long time. However, as the hills become more developed, they will forge new neighborhoods and more roads will link to it. Then there will be more stores, more leisure options, etc. but this might take 5-10-20 years. So always think about the future of the current location of any property you want to invest in. Areas with access to labor are important as well. You don’t want to have to unclog a toilet on your rental properties in the middle of the night.
The developing city
Any city that is developing will be a hotspot to do business and invest in. Chief among them are cities like Dubai and New York, as these cities have been constantly developing for the past 10-20 years. Investors can now own a share of Dubai property for $136 through SmartCrowd. This is an investment platform for beginners and advanced investors but also for families. You can see which types of property are out on the market, how they are growing or developing, and what the prices are doing. Dubai is a city that has been developing for a long time because it is growing into a business hub. This is something that bodes well for investors because they can rely on young professionals wanting to move in, buy or rent apartments and penthouses, etc.
The cultural view
For many of us the importance of the family home will never go away. This is what you could call a culturally important real estate opportunity. Investing in family homes is always going to bode well, as the supply almost always outstrips the demand. So the prices usually go up every single year, even if it’s just by half a percent. Everybody wants their own property, and young families that were going to continue living in the city are moving out thanks to the pandemic. Being locked up in their apartments has changed minds among the young professional crowd. What is important to the next generation? What kind of real estate will be popular 10-20 years from now? Green apartments, suburban homes, and country homes will always be popular.
Some of these things should open your eyes to what future-proof real estate means. There is longevity in the location, the development plans, and the cultural view.