Invest locally or elsewhere?

[Meghan Zuvelek]

Hello there!

I want to build a property portfolio but not quite sure where to start.

The town I am living in is experiencing a very heated real estate market. This year prices increased 30 percent YOY with the average single-family home price now over $800K. Rents are also quite high and we are currently paying $1850 a month for a two bedroom townhome. I hate the feeling of renting however am feeling the property market where we live is becoming out of reach.

My question is- is it wise to start out investing in a market such as this, or would be it be wiser continuing to rent and purchasing an investment property elsewhere?

We've got about $40,000 to invest.