Comparing two real estate markets
Comparing two real estate markets may be a good idea, but only if done correctly, which is certainly easier said than done. Most people do not do this and instead, they simply compare prices without taking into account any other factor. A good illustration of this is when people compare the London and Paris property markets. French investors are used to saying that "the Paris real estate market is still attractive in terms of price", their main argument being that "real estate prices in London are higher than in Paris". It is like comparing apples to oranges. Tax levels are different between the United Kingdom and France, wages are on average comparable between London and Paris, but the distribution between the population is different, London having both better paying jobs and less good jobs paid, London also attracts more international people, richer and diversified population than Paris too. These are just some of the differences between these two markets. Even a small difference can explain big differences in property prices. Nothing should be overlooked and that is why it quickly becomes difficult to accurately compare two real estate markets. As a general rule, if you base an investment decision with a single argument, you are mistaken. For example, if you ask someone why he bought a property in Paris and the only reason he or she can tell you is something vague (and in this case, inaccurate like "I think the real estate is a good investment "or if he or she says" I think prices will go up ".