Invest In Real Estate - But Where?

By
Real Estate Agent with Short Sales, REO, New Builds, First Time Buyer

Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio. Use the questions below to find them.

 

Demand Questions

 

 1. Is the population growing fast? Check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth or little job growth.

 2. Is job growth decent? Again, ask local authorities or use the census information. You want to see job growth equal to or exceeding population growth. The people have to have money to pay for housing. Right now, areas with little or no jobs are not growing because high oil costs are forcing people to move closer to town and thus, closer to their jobs.

 3. Decent quality of life? This is 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. Wealth in the area? It is always a good sign when there is some degree of wealth in a town. Count rich homes. Wealth means everything doesn't die when the economy slows.

 

Investing in real estate pays off!

 

Supply Questions

 

 1. How much new construction? The census figures can tell you what's happened over the last ten years. Then check with the local authorities to see if the number of housing units they've issued permits for is more or less than the expected population growth.

 2. How many homes for sale? A lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.

 3. Rent and vacancy levels? Are rents high enough to justify investing? Are vacancies low?

 4. Available land that is buildable? Less is better for future appreciation. When the land runs out, the prices start accelerating upwards.

Use these questions to compare various towns and cities, and you'll see the differences more clearly. You'll see how housing demand compares to supply in each. Finally, you'll see where it is better to invest in real estate. Give me a call today if I can help you in your real estate search here in the valley.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Larysa Nisen 05/19/2012 03:37 PM
Topic:
Real Estate General Information
Location:
Arizona Maricopa County
Tags:
real estate investing
return on investment
cash flow property
real estate
real estate in arizona
invest in real estate

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Rainer
95,320
Shane Cook
My Home Group - Gilbert, AZ
Residential and Commercial Realtor

I acutally like small condos in the Mesa area around MCC, Banner Desert, the Fiesta District, and the light rail.  High demand and access to lots of stuff.

Also helping a client pick up some four plexes near Tapitio cliffs, very solid area.

May 09, 2011 03:16 AM #1
Rainmaker
2,803,481
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Mark - Thank you for the detailed quality information where to invest in real estate.

May 09, 2011 03:35 AM #2
Rainer
97,025
Mark R. Hardy
Short Sales, REO, New Builds, First Time Buyer - Mesa, AZ
Short Sale Specialist Realtor - Mesa AZ

Shane,

Yeah that is a great area for condos.  Great rentability.

John,

You are welcome.

May 09, 2011 05:40 PM #3
Rainer
3,745
Christopher John
C.J.F.@Associates - Lucerne Valley, CA

Oh yea, you definitely need to know the area you are investing in, and nothing can make up for good old fashion know how, even in the current market! I especially liked your comment regarding available land. The law of supply and demand likely applies here. Thank you Mark.

Christopher John 

Jul 21, 2011 05:58 AM #4
Rainer
97,025
Mark R. Hardy
Short Sales, REO, New Builds, First Time Buyer - Mesa, AZ
Short Sale Specialist Realtor - Mesa AZ

Christopher,

 

Yes, this is happening in Arizona right now.  Landlocked areas such as Tempe and Chandler are still in high demand but raw land and available properties are becoming more and more limited so this is driving land and home values back up quicker than other areas of the Valley of the Sun.  Thanks for your comment!

Jul 26, 2011 05:14 AM #5
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Rainer
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Mark R. Hardy

Short Sale Specialist Realtor - Mesa AZ
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