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American Home Business Network: Real Estate Market Analysis

Thursday, August 13, 2009

Real Estate Market Analysis

By Mauricio Cazador

A market analysis is a study of current supply and demand conditions in a particular area for a specific type of property. Such a study is used to indicate how well a particular piece of real estate will be supported by the market. It identifies the most likely users of the project and how well they are being served by the existing supply properties. In essence, the study shows that there is a need for a new project or if an existing project has a good future.

For an example, suppose you are considering construction of a new luxury apartment in a certain town. A market study would first look at the sources of demand for the units. It would identify a target market - a type of tenants most likely to be attracted to the property. This might include their income, typical family structure, and what they desire in a residence. It would then survey the market area to see how many of these people exist and where they live. A good study will project growth trends and target markets, because a likely source of tenants will be new arrivals.

Next, the study will examine supply conditions. The number and location of similar properties is identified. A survey of vacancies indicates how well supply matches demand. Features and characteristics of competing properties should be described and some indication of market rents should be found. In addition, any new projects that will come along should be identified.

Market analysis is part of a feasibility analysis. It is used to estimate the pace of rent increase or sales for a new project. It may be expressed as an overall absorption rate, such as the market needs 1000 new apartment units per year, or specific rate for the project, such as given current competition the project should capture 200 new rentals per year. This absorption rate estimate is important and projecting the revenue production of a property.

Market analysis may indicate that there is little demand for the type projects envisioned. This would indicate that a change in plans is needed. The project can be redirected to a different target market. The study may also be used to help in the design of a project. A market analysis may indicate some feature that is lacking in the existing supply that may give your project a competitive advantage. At the same time, it will probably be necessary to offer the standard features of the competition. The market analysis will also help pricing and product for the indicated target market. Market analysis is a crucial study to undertake before beginning any new real estate development.

About the Author:


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Feature Article: Make the Leap to Home Based Business Success

Feature Article: Make the Leap to Home Based Business Success
Copyright © Stone Evans, The Home Biz Guy
http://www.PlugInProfitSite.com/main-21753

Before you can have a successful home based business, you must first possess 3 "intangibles." These are things that must come from WITHIN you.

 ===> Intangible 1 <===

First, you must have a strong WHY.

Why MUST you have a successful home business? What is driving you? What is it that you CAN'T have in your life anymore and/or what is it that you absolutely MUST HAVE now?

For me, I couldn't stand working 12+ hours a day anymore and missing the experience of my children growing up. I also absolutely HAD TO HAVE the freedom of being able to control my life and finances through a little box (laptop computer) that I could carry with me anywhere in the world and not be tied to anyone's time pressures or demands but my own. That was my carrot and my stick. I felt a great pain deep in my gut of missing out on my children's lives and the incredible freedom that succeeding in a home based business would provide for me. I found my why. You MUST find yours.

===> Intangible 2 <===

You must BELIEVE that it is possible.

If you don't believe that it's POSSIBLE for you to have a successful home based business or make your living from home, you won't. It's that simple.

For me, figuring out that it was possible was just a matter of realizing that many other people were ALREADY making great money working from home. If they could do it, I could too. It would just be a matter of figuring out what those people were doing and then adapting it to my situation.

There is no shortage of undeniable PROOF that people (millions of them) are making money working from home. Just get online and do some research and you'll find countless testimonials and stories of REAL PEOPLE making real money on the Internet. Or head to your local bookstore and you'll find the same documented evidence of this fact. Truth is, it's getting easier and easier to make money with your own home based business.

I've always said that "affiliate marketing" (a simple way to make money from home) is the job of the future. In the "old" days, you had to go to a potential employer, apply for the position and hope for the best. Now you can simply go to any company you want, fill out their affiliate application and start work immediately. Affiliates are the new working class. In fact, making money with affiliate programs or making your living on the Internet is WAY MORE than possible. It is pretty much (or will be soon enough) unavoidable now. Affiliate marketing is the "job" of the future that's already here TODAY.

===> Intangible 3 <===

You must be willing to MAKE THE LEAP.

Ready, FIRE, then aim... This is the operating philosophy you MUST adopt to succeed with a home based business.

That's backwards for most people who like to aim before they fire. The fact is that home based business success is a moving target... The only thing constant about it is change. You need to stop analyzing the game and simply jump into it. You can't learn from the outside... You have to be IN THE RING to truly understand it.

The lesson here is that you will never really be READY to start a home based business. You simply have to start one. It's like having children... You're never really ready, but when it happens you adapt and grow. This is what I call "Making the Leap."

The good news is that the cost of failure with having your own home based business is very small. In the "brick and mortar" world you need to evaluate things very carefully before you decide to open up a business. It's almost always necessary to invest thousands of dollars to get an offline business off the ground. However, on the Internet you can often start a successful business for less than $100. The Plug-In Profit Site is a great example of this: http://www.PlugInProfitSite.com/main-21753

You simply need to get IN THE GAME... Each moment that you stay "out there," you're wasting valuable time that you could be learning and skills necessary to build a successful home based business. In fact, if you're not in the game yet, you're ALREADY behind the times. Make the leap to creating a successful home based business today!

About the Author:

Stone Evans, The Home Biz Guy has helped thousands of people in over 200 countries around the world start and run a successful home business. Discover 3 easy steps to start your own home business and subscribe to The Home Biz Guy's FREE Home Business Secrets Mini-Course at: http://www.PlugInProfitSite.com/main-21753



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