After reading a real estate article online from 2006, I noticed some very important information hidden between the lines. The article was on hot real estate markets, but the tips given about these markets were more timeless than the market listing itself.
How Do I Know When to Buy?
Renters are the key element in a market of buyers. If there is a huge influx of renters in an area after a real estate crash or economic downfall that means people are again making money. These people want to approach the market with ease, at first, and thus choose to rent a home before buying a home. If the rentals are sky rocketing in an area, the time to but is right now. Take up those pieces of property that are for sale for bottom prices and hold on to that real estate for sale later. (Renting out the homes until the prices rise again is also a great idea!)
How to Gauge When a Neighborhood is on the Cusp of Success
For many real estate investors, the neighborhood that looks iffy may be the next big selling spot in the city. But, how do you gauge the change in a neighborhood. There are three things to look for and all the investor needs is a newspaper and a phone book.
The newspaper will list homes for sale in an area, if the number of homes for sale is doubling monthly, that means the area is on the verge of explosion.
The phone book will be used for a dual purpose. Historically, the popularity of the nightclubs in an area is parallel to the popularity of the real estate. The last place to call is the local coffee shops. If the price of coffee is on the rise, make sure to buy up now because affluent people love great coffee.
What is Dump Hunting?
There are many terms for dump hunting, but essentially it is the art of buying up the less expensive pieces of real estate on the edge of planned communities or thriving residential real estate spots. With time, these “dumps” will meld with the more affluent real estate and the value of the real estate will grow exponentially. That is where the money is made.
The real estate market is showing healthy signs of growth, but remembering the phrase, “Those who do not learn from the past are doomed to repeat it!”, we think now is the time to focus on the tips from the past and move into the next real estate boom.
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Interesting post. I agree that we appear to be slowily moving to a brisker moment in sales, and it appears to be "everywhere". Is this a concern that cash might be the next bubble, and so we need to have good hard assets?