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- Gain an edge over the competition with these 5 metrics 📈
Gain an edge over the competition with these 5 metrics 📈
Your path to informed and profitable investment decisions
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In todays download, I am excited to share the top 5 demographic metrics I look for in every potential investment to empower informed and ultimately profitable investing decisions.
As I have observed over the past few years, these metrics have proven to be critical indicators of an asset's potential for success.
As the real estate market becomes increasingly competitive, it's essential to have a refined and strategic approach to investing.
I am confident these metrics will help create an edge over the competition by identifying the key demographic trends and patterns that can signal a promising investment opportunity.
So lets get into it!
The top 5 demographic metrics to make more informed and profitable investing decisions:
1. Population Growth 📈
Tracking population growth in a specific area can give investors an idea of the demand for housing in that area.
Areas with high population growth tend to have a high demand for housing, which can also lead to appreciation in property values.
Consistent population growth is always a welcome sign of a good area to invest in.
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*The 15 fastest-growing large cities in the United States in 2019, by percentage change in population from 2020 to 2021
2. Crime Rate 🦹
Crime impacts property values, its as simple as that.
High crime areas tend to have lower property values because they are less desirable for renters or buyers.
By tracking crime rates in a specific area, investors can gain insight into the overall safety and desirability of the area and make informed decisions about investing in that area.
Further, if there is reason to believe a neighborhood will be allotted resources to decrease crime, there may be reason to believe property values will increase.
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*Leading cities with the largest number of violent crimes per 100,000 residents in the United States in 2020
3. Income Growth 💸
Income growth indicates the overall financial health of an area and its residents.
Areas with high income growth tend to have strong economies and job markets, which can lead to increased demand for housing and appreciation in property values.
By tracking income growth, investors can identify areas that may be ripe for investment.
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*Metropolitan areas with the greatest percentage loss in median household income in the U.S. from 1999 to 2014
4. Employment Growth 🏢
Employment growth is closely tied to income growth and can also indicate the overall health of an area's economy.
Areas with high employment growth tend to also have strong economies and job markets, but be very careful of high growth areas that rely on one industry or employer.
In the dark of the night, half the jobs can be taken away and you are suddenly 50% occupied.
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*Rate of job growth in the United States between 2020 and 2021, by state
5. Home Value Growth 🏡
Home value growth is a leading indicator of the overall health of a housing market.
There are multiple "sub-metrics that feed into this you may consider:
•education rating
•location
•demographics
Be aware of how property values are trending in your market, it will help you identify good areas for investment or areas declining in value.
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That's all for today friends.
I want to thank all of you who shared this newsletter with friends last week, it means so much to me!
If you continue to find value in this newsletter, I would appreciate if continued to share it with a few more friends.
Thanks again for joining me this week,
Jake
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