Most people would agree that the real estate
market right now has seen better days. For the most
part, there is a surplus of un-bought
homes on the market and prices are getting slashed
by the day. So this leaves many people wondering, “When
will the next big real
estate boom be, and where?” Well, this can be a very
tricky question to answer, but most experts seem to
believe that we are on the verge of the next big real
estate boom, and things will get a lot better than they
are right now. So now the next question is where exactly
is the next hot-spot for real estate going to
be?
In the article, “Picking and choosing
the next real estate boom area,” by M. Anthony Carr,
featured on RealtyTimes.com on July 21, 2006, the author
attempts to answer this question. He explains that
buying property is pretty much always a good investment
if the economy and area is good and if you have the
appropriate amount of cash flow. Although there is no
concrete secret to finding out where the next high
profit area will be, Carr does give some helpful advice
and suggestions.
“Real estate, unlike stocks or
bonds, is a good
investment any time … you just have to know where to
buy. Like the old adage goes: location, location,
location. The location is key and depends on the
economic picture of that location at the time. Wouldn't
you have loved to have bought a house in the D.C.
market, for instance, seven years ago? Any property
would have done you proud. The whole market grew at 153
percent in that period of time. Thus, location and
timing were key, all based on the advent of the latest
economic boom, coupled with an affordable, but low
supply of adequate housing. So where can you find that
formula now? Start looking at smaller markets where
federal spending or private investing is moving upward.
For the start-up investor, look around your state
first,” according to Carr.
Carr also gives a
list of some helpful tips on signs to look for before
buying or selling a property. Some of the tips he give
are to look for low housing prices, a stable economy,
and to look at the rental vacancy rate.
“Okay,
the housing
prices are within your budget and the economy is
stable; heck, it's even about to grow. Great. How's the
rental inventory? Is there a lot of it? Is there too
much of it? The vacancy rate let's you know how long
your property will be on the market and how much rental
income you'll be able to pull in each month. Will you
have a positive or negative cash flow each month? Once
you have these points in your plan covered, you're now
ready to start looking at property. Get together your
real estate team (agent, lender, insurance agent,
contractor, etc.) and hit the road to building
wealth.”
Following these tips will help you to
become prepared and educated before buying or selling a
property. It is important to be well informed about the
real estate world in general before you even think about
investing any money. |
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