Become A Futurist Real Estate Investor For 2014 – Trends, The ‘W’, and The 3P’s

Never heard of them? To be a futurist, every real estate investor has to juggle them (the W and 3 P’s) very carefully. The 3 P’s refer to the three futures of your investment. These include:
1. The most probable future;
2. The most preferable future; and
3. The most possible future of your investment.

The ‘W’ is the circumstantial “Wild Card” that fate has to throw in to test your metal and hence is dependent on your risk mitigation strategies.

What Are We Dealing With?
In this post we will deal with aligning your “P’s” in light of the 2014’s emerging trends reports published by Colliers International, PricewaterhouseCoopers, and Swanepoel. All of them are the leading organizations in developing and guiding business trends at home and abroad.

Our primary focus will be in understanding the way the four generations of our nation (X, Y, Baby Boomers, and War babies) are most likely to orient themselves given that 2014 has been claimed as the year that will “recover from the recovery”.

Dealing with Generation Y
In the upcoming 5 years, the country will expect a major shift in demography primarily because of a shift in preferences of Generation Y (comprised of people born between 1979 and 1995). Given that this generation was originally an urban and urbane generation, is the most multicultural, and transient generation that stands at a whooping 72 million Gen-Y-ers, and continues to grow with immigration, the surveys seem soundly committed to their rulings.

Keeping their surveyed preferences in mind will aid you in buying/selling your real estate with great margin for profit and capital inflow.

Gen-Y-Preference for City Living
Of all the generations, gen Y is the most likely to live in a medium-sized or big city, and to express the preference to live in a medium-sized or big city in five years. According to the PricewaterhouseCoopers’s report, currently 39% of the Gen-Y resides in medium sized or big cities while 40% of the remaining expects to move in to such cities over the next five years.

This is in stark comparison to:
1. Gen-X which is at current/5-years 30/23%;
2. The baby boomers are at 22% current and low 14% for the next 5 years;
3. Whereas the War Babies (Silent Gen) are at 22% current and 25% future.

Who are currently residing in medium-sized or big city. For gen y that’s 39$ whereas the Genx remains at 30% followed by baby boomers at 30 and war babies at 22

Furthermore, a personalized interview survey of 347 individuals found that 14% of Gen-Yers claiming:
1. they live in or near downtown;
2. 34 percent said they live in a city neighborhood outside of downtown;
3. 13 percent said they live in a dense, older suburb.

These amounts to a significant 61 percent of gen Y now living in urban environments!

Gen-Y -Preference for Development
When asked about the importance of specific community features, Gen Yers ranked the following characteristics highly:
1. A short distance to work and school at 82%
2. Walk ability 76%
3. Proximity to shopping and entertainment 71%; and
4. Convenience of public transportation at 57%.

Gen-Y Is On the Move -Are You?
About 38 percent of the Gen Yers expect to end up in an apartment or a duplex, a townhouse, or a row house in the next 5 years. While out of the 49% living in single-family homes, 60% plan to move to another single-family home.

Your task hence is to invest in metropolitan areas that provide a range of a range of affordable, appealing, and high-quality options-not just for Gen- Y, but for other generations as well.

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