To help new developers enter into the property industry, I am going to break up the house and market language to help you understand demographics and how to target active buyers.
Usually, the market is broken up into the following buyer categories:
- Entry Level
- Move Up
In this blog, I am going to share how to design for the entry level market: the first-time home buyer.
It is important to understand that this buyer will be moving up soon and they don’t tend to over capitalise on their investment as their main goal is to be able to service their loan while growing their equity. Most of the time, they will stay in this home for an average of five – seven years. For this reason, their loan needs to be lower and comparable to a rental value.
To attract this group, I recommend top design but at a very accessible price point. Top design doesn’t mean top brands, it means offering unique and clever design solutions that add value to their lifestyle without the price tag. Many people confuse this market and decide to attract customers with labels or brands similar to luxury, but that solution will only attract a handful of people, not the core.
Another mistake I often find is when people build cheap with basic design solutions just for the sake of price. Remember that this group is composed by millennials, the kings and queens of social media. They need spaces that are “insta-ready”. If you are looking to develop for this demographic, focus on a product that is low maintenance, modern and durable with appliances that cost very little to run.
You can attract larger crowds with the lifestyle and social consciousness rather than interior bells and whistles. This demographic will be attracted to amenities such as pools, gyms and areas for social gatherings like green spaces and parks with easy access to transportation and proximity to shopping.
They usually belong to the workforce 9 to 5. They also tend to be single, young professionals or have young families with small children. This buyer is looking for efficiency, quality and price point. Millennials are DIY people and they are more than happy to do their upgrades so don’t get distracted with tricks because they can smell a cheat.
Think of building great relationships instead and give them an asset that they can profit in five years. Maybe they will buy the second home with you, so focus on making them loyal customers for life.
Stay tuned to know more and how to design for the move up buyer!