A property developer likely has knowledge and experience specific to the real estate industry, such as knowledge of building codes and regulations, zoning laws, construction techniques and costs, and the local housing market.
Property developers know the rules of property development and property economics and take action by following a replicable system of research and property development.
They do their research and understand the difference between the demand and supply of various suburbs. They understand the various factors that play a role in determining house prices.
They know exactly where to start and they maximise their upside and cover their downside.
To be exact, real estate developers have a working knowledge of Property Economics. In a nutshell, they understand that a deal is a deal – no matter where it is, what suburb it is in. If it stacks up, it stacks up.
Additionally, a property developer may have a deep understanding of their specific location and the local market dynamics, whereas an economist may have a more general understanding of the broader economy.
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An economist may not have the same level of expertise in these areas and may instead have a broader understanding of economic principles and how they apply to various industries.
Economists may incorrectly predict property prices for several reasons.
One reason is that real estate markets are highly localized, and economic conditions and factors affecting prices can vary greatly from region to region. This means that a national or even a regional economic forecast may not accurately capture the specific conditions in a local real estate market.
Another reason is that real estate markets are affected by a wide range of factors, including interest rates, demographics, employment, and consumer sentiment, among others. These factors can be difficult to predict, and economists may not always take all of them into account when making forecasts.
Additionally, real estate markets are often subject to boom and bust cycles, where prices can suddenly rise or fall in response to changes in economic conditions or investor sentiment. These cycles can be difficult to predict, and property economists may not always accurately forecast the timing or magnitude of these changes.
Lastly, economists may not have access to all the data or information needed to make accurate predictions about property prices. For example, property developers or real estate agents may have access to more detailed information about specific properties, such as renovation costs, rental income, and vacancy rates, which economists may not have access to.
Property Development Books - “Starter-Pack”
18 Property Development Books To Get You Started Now
Includes 18 x detailed eBooks
✓ Property Development Checklist - 6 Pages
✓ How To Finance Your Property Development Project? - 13 Pages
✓ Property Development Team - 19 Pages
✓ Site Acquisition Process - 14 Pages
✓ The Ultimate Guide To Getting Started In Property Development - 42 Pages
✓ My Secret Property Development Process - 28 Pages
✓ How To Nail Your Next No Money Down Deal? - 29 Pages
✓ Industry Insiders Guide To Managing Risks In Property Development - 26 Pages
✓ How To Become A Property Developer? - 41 Pages
✓ Do You Have What It Takes To Be A Property Developer? - 12 Pages
✓ 7 Common Mistakes Made By Property Developers & How To Avoid Them? - 12 Pages
✓ 5 Reasons, Buy & Hold Property Investors Fail At Property Development - 16 Pages
✓ 10 Financial Mistakes Made By Property Investors & Developers - 54 Pages
✓ My 26 Question Due Diligence Checklist - 21 Pages
✓ Property Development 101: The Feasibility Study - 34 Pages
✓ Property Development 101: Construction Guide - 55 Pages
✓ Property Development Blueprint - 66 Pages
✓ Your Definitive Guide To Property Options - 36 Pages
I’ll answer your question with another question. Let me ask you this…
Have you seen a RICH economist?
I think you have your answer.