7 life stages that influence real estate
Real estate is never just about bricks and mortar. It’s a journey that tends to parallel the course of life.
Often, the places we live in will alter in size, scale, location and value depending on our relationship status, career progression, the arrival of family, kids leaving home, and more.
In fact, there tend to be seven clear life stages that influence real estate. Here’s a quick look at what those are…
First home purchase
Whether it’s a small apartment, a new build or an older house that you intend to renovate and ‘flip’, that first home purchase reflects a significant stage of life.
Often a seminal moment of adulthood, it indicates independence and financial security. It’s also a crucial first step on the property ladder.
Ideally, this first home will increase in value, allowing you to use that equity for further real estate purchases down the track.
Having kids
Starting a family is a major catalyst for a real estate shift for many people. After all, children tend to come with needs, including space to play, and space to store things, such as toys.
Then, later they’ll need space to study and welcome their friends.
Location also tends to become a factor once children enter the equation, with a need to be near amenities such as schools, shops, and sporting facilities.
Empty nesters
On the flipside, the kids leaving home is also a life event that tends to prompt a bit of a real estate shift.
After years of a full house, suddenly you find there are empty rooms, less storage is needed and common areas aren’t getting as much use.
For many people, this prompts them to downsize, selling the family home for something smaller that often comes with less maintenance.
Divorce
A relationship break-up or divorce can have a major impact on your living situation and real estate plan, with existing property often sold and the proceeds split between the two parties.
Selling a property due to divorce can be tough, but it can also mark an important turning point as you ready to embrace the next chapter.
Career change
Career changes can affect real estate in a whole host of ways. A new job might see you move interstate, or even overseas.
This might result in you selling your existing property, renting it out, or purchasing a new property elsewhere.
A new career might also come with a change to your finances, allowing you to purchase something that better suits your needs.
Retirement
A successful retirement involves planning, and part of that planning relates to real estate. What sort of life do you hope to lead in retirement?
Do you wish to travel? Do you have health needs that your home will need to accommodate? Would you like to live in a community of like-minded peers?
All of these decisions will impact the type of property you choose, including its size, style, and location.
Financial change
And of course financial change has a major impact on real estate, and sometimes these financial shifts can be beyond your control.
For example, a recession might see interest rates rise, which can prompt some people to sell their homes out of necessity.
Meanwhile, an inheritance might allow you to buy a property that you previously couldn’t afford. Financial shifts, such as a pay rise might also see you in a position to purchase an investment property.
In fact, real estate should be considered as part of your greater financial strategy in life.
