Location Location Location – Do you know where this phrase comes from? According to the “Yale Book of Quotations” this phrase was first used in a real estate classified ad in the Chicago Tribune in 1926. Well, since 1926, this phrase simply defines the most important aspect to real estate. Here are some other aspects to seek when looking for investment real estate.
Real Estate Price Trends – The first things to look for are price trends in the area. For example, a potential investor should look to see if the price of homes is accelerating faster in one area than in others. Next, check to see if the average home price is more than in other neighboring towns. This will provide an idea of where the biggest demand is.
Look for a Catalyst – One sign that an area is up-and-coming and that it will be desirable in the future is the development of new infrastructure. When you see new roads and schools being built, it’s a sign that the community is set for a growth spurt. Investing in a growing community can be very profitable. In addition, certain types of development, like new shopping centers, may be extremely attractive to home buyers, and may also help keep the tax base low.
Property Taxes – If there are two towns side by side – one with high property taxes (or with progressively rising property taxes) and the other with low property taxes – the one with the lower taxes will usually be more in demand.
Great Schools – Nearly every state ranks its schools by how well students in each district fare on tests in math and English. Sharp-eyed investors should look for schools that are moving up or are atop the list. These areas are often desirable to parents. Access to quality education is a big selling point to residents.
It pays to do your homework and to tap local resources to determine which areas are hot now and, more importantly, which ones will be hot in the future. Much of the information is out there and free for the taking. You just have to be willing to do the legwork.