Purchasing a home is the biggest financial decision that you will make in your entire life.  There are many factors that determine whether buying a house is a wise decision or not; financial situation, location, down payment, loan options, interest rates, etc.  One of the most important things to take into consideration is the future of your investment. 

Everyone knows the number one rule of real estate is location, location, location.  But, coming in a close second is that the real estate market is consistently changing.  With this being said, considering an investment as big as your own house, it would be nice to have an idea of what the future may bring.

 

What the Future Holds

According to PricewaterhouseCooper, market trends are going to experience a major shift in the next 5-10 years.  If you are considering buying a home in the near future, there are some changes that PwC predicts will affect the real estate market by 2020 and beyond. 

  • Investable real estate will continue to expand substantially, leading to increased opportunity in emerging economies:
    • By 2020, investable real estate will have grown by more than 55% compared to 2012.
  • Cities on the “up-and-coming” will present a wider range of risk and return opportunities.  So what seems like an emerging location now may not be the case 10 years down the road.
  • Technological innovation along with sustainability will play a huge factor in the value of your home in the future.

If you are interested in reading more about PricewaterhouseCooper’s findings, you can read their full report here: Real Estate 2020: Building the Future

 

These are just a few of the trends that you can expect to see over the next decade or so.  But as always, you should not be surprised when the real estate world takes unexpected turns.  Regardless of what the future brings, real estate investments will continue to play a major role in our world.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”


-Franklin D. Roosevelt