Were already on to part 5. For this one I decided not to pick an indicator that people already look at such as property prices or vacancy rates. Instead we need to look at the media sentiment, this is essentially what the media thinks of the real estate market. Because people tend to believe the media, it is very important to look at what magazines and journals are saying about the market.

Although generally the media does not know what it is talking about and is clearly misinterpreting the data, we still need to look at it.

A strong media backing can really effect the demand in a region. Although a media backing can be a good thing, if the media turns against a market it may create some very lucrative opportunities. Purchasing undervalued properties is a very easy way to create wealth. When analyzing the media you should ask:

• At the stories in your local media positive or negative about the real estate?
• Are reporters suggesting a gloomy feature?
• Is there a lot of talk about “bubbles” or “crashes”?

You can find this data by looking through any form of local media that looks at the economy. You should also consider looking at national media outlets, as sometimes they are listened to even more then the local media.

Part IV: Total Sales <<

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Filed under: Due Diligence, Investments, Real Estate