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Where are the best investment real estate locations? If you have
enough experience investing in real estate, you can make money
almost anywhere, but there are always places that are better or
worse for real estate investments. For maximum profits, you want
places that have a better demand/supply ratio. You can use the
questions below to find them.
Real Estate Demand
1. Does the area have decent job growth? Ask local authorities
and use census information. Ideally, you want to see job growth
equal to or exceeding population growth. You also want areas
with professional jobs moving in. It is estimated that for every
professional job created, there are four service jobs created,
and all those employees need a place to live.
2. Is the population growing? You can check the US Census
figures online, or ask the local government if they have the
statistics. Stay away from areas that have little growth.
3. Is there a decent quality of life? |
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It's subjective, but
important. Are there theaters and bookstores? Count coffee shops
and cafes. Trendy areas usually have increasing demand for
housing. It's also a good indication of a high quality-of-life
if people are willing to take lower-paying jobs just to live
there.
4. Is there wealth in the area? It's a good sign when there is
some degree of wealth in a town. Look for nice homes. Wealth
means everything doesn't die when the economy slows.
Real Estate Supply
1. Number of homes for sale? Lower supply of homes for sale
means upward pressure on prices. This indirectly drives up rents
as well, which makes for better investing.
2. New construction? Census figures can tell you what's
happened over the last ten years. Check with the local
authorities to see if the the number of housing units they've
issued permits for is more or less than the expected population
growth.
3. Rent and vacancy levels? Rents have to be high enough,
and
vacancies low enough to justify investing. When we first came to
Tucson, every building had vacancies We saw a man holding a sign
that read, "Apartment - $250 Per Month." A great place for
renters, but not so great for landlords.
4. The available land that is buildable? Of course, less
available land is better for future appreciation. When the land
runs out, the prices start accelerating upwards.
When you use these questions to compare various towns and
cities, you'll see the differences more clearly. You'll have an
idea about how housing demand compares to supply in each. This
will help you pinpoint the best investment real estate locations.
About the author:
Steve Gillman has invested in real estate for years. To learn
more, get a free real estate investing course, and see a photo
of a beautiful house he and his wife bought for $17,500, visit
http://www.HousesU
nderFiftyThousand.com
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