Importance of Understanding Your Target Market

[Tom Goans]

Importance of Understanding Your Target Market

While many real estate investors and landlords have very optimistic viewpoints, the underlying fundamentals may be weakening. Ignore the possible problems for the target market for your real estate investments may be a fatal mistake.

From an article released today, August 16, 2013:

Real weekly earnings fell a half percent in July alone, according to the Bureau of Labor Statistics, as hourly wages dropped 0.2 percent and the average workweek shrank by 0.3 percent. Wages dropped on an annualized basis as well.

As a real estate investor or landlord, you may want to review your numbers and approach to investing. If you were planning to increase rents, you may want to analyze your target market's income and spending power.