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What will increase the value of your property—grow your investment? When searching for property to purchase as an investment property, consider some of these factors below. Seek out property that will grow in value, obviously, but take some of these items into consideration before you decide to buy.
Cities You Should Seek Out and Avoid in 2008
From CNN's Money Magazine: Where home prices are headed next Want to know what your home will be worth this time next year? Check out these home price forecasts for the 100 largest U.S. markets, from Money Magazine.
- Selling prices of comparable properties
- Neighborhood statistics (cost of living/demographics)
- General market conditions
- Job market conditions for the area
- Your financial status and goals
- Schools in the area
- Future construction in the area
- Views or property position (could new construction block a view)
- Location hallmarks (unique and permanent attributes - close to parks, the ocean, or landmarks)
- Zoning laws
- Analyze government and community websites to learn about future developments, new businesses to coming into the area, or parks that will be built
- Schools, libraries, restaurants, shopping, parks with a track or a gym near by (proximity to things that certain types of buyers will desire)
- Freeway access or public transportation
One of the biggest things to think about is what will the area be like in five to ten years. And, how long do you want to own the property? This has to do with the type of strategy you're trying to enlist, whether it's an attempt to fix up the property and sell it in a few years or rent out the property for the long term. With the current market, as of 2008, the real estate market will not rebound for a number of years. Won't see the huge surge in appreciation like during the early 2000s--the housing bubble and bust.
Think about the type of tenant you're seeking. If your target market is students or teachers, maybe you buy property near a college or university. That way you'll have a built in supply of tenants for your property. If you're target market is over 55, then you'll need to ensure that the duplex or apartment you're buying is close to cafes, restaurants, and grocery stores--and maybe near a hospital as well.
* When selling a house or property, learn more about the buyer so you can present aspects that they will value. If they work downtown you can explain the ease of using public transportation or the best short cuts to take to avoid traffic when driving. If they like to run or bike you can show them the bike trails nearby.
Visit Hot Properties for the a few resouces that list some of the top cities in the United States to buy property in.
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