For the long-term global property investor, who prefers to own units for 10 or more years, the age demographics of a country should give you the most reliable indicator of whether property values will increase or decrease in the future.

The age demographics of a country will impact everything from the economy, to retail spending, and ultimately onto property prices. The key age group is 35-54, which in this article we will refer to as the spenders. This age segment accounts for almost 50% of all retail spending. When you think about it, it is quite obvious. People tend to be at the peak of their personal earning power during this time, they are moving up the property ladder, needing bigger homes for their expanding families and are comfortable enough to upgrade their cars and take better holidays etc.

The once in a lifetime baby boom
As most of us alive today have been fortunate enough to not live through a World War, it is fair to say that the baby boom experienced in the UK, the US and other European countries, was a once in a lifetime event. In the UK, the number of births soared in the 1940s and 1950s and in the US it was a little later, occurring between the mid-50s and mid-60s.