subject: Invest In Emerging Real Estate Markets [print this page] Property valuations in many areas have likely reached or are near bottoming, becoming generally affordable again. Interest rates remain low and the economy shows continuing signs of strengthening; great indications that its an ideal time to invest in U.S. real estate.
Successful investing in real estate is often about timing but the old adage remains true. Its still very much about location, location, location. But when considering areas to bring investment dollars, we should think in terms of which cities are currently experiencing (and expecting) positive economic conditions and other relevant factors. The sexy choices and decisions can easily become financially unsound.
Only when indicators are favorable and an area is determined to be an emerging opportunity should a market be seriously considered for yourself or clients. Its almost always unwise to make real estate investment choices based on emotion or convenience. The results of correct due diligence should govern all investment decisions. Certainly, there can be no desire or intention to invest in cities that have been experiencing stagnant or declining home values and prices.
Choose to invest in emerging real estate markets
When we consider markets and sub-markets for investing we analyze many factors, including:
Property valuations price index
Depreciation risk levels
Median income to median home price
Current and future business economy
Anticipated employment trends
Projected population growth
Monthly rent to price ratios
Current and historic vacancy rates
Current foreclosure rates
Owner occupied neighborhoods
Present available housing inventories
New home construction projections
Once a city has been qualified as emerging and deemed safe for investing, then accurate calculations can be made regarding built-in equity (immediate gain), positive long term cash flow and appreciation over time.
Intelligent and timely decisions translate to great returns on real estate investments during this period of time. Conditions are perfect to get off the sidelines as high value opportunities (bargains) exist throughout the country.
And theres very little gamble when you know what youre doing
