Where best to invest in 2018?

[Tina Chen]

Hi BP veterans, I’m a newbie on BP. I live in CA where I think it’s just tooooooo expensive to invest right now. I would like to know what cities you think have low prices and high rent so I can get the best return. Any insights or suggestions to websites that have this info? Thank you!!

[Jonathan Twombly]

Originally posted by @Tina Chen:

Hi BP veterans, I’m a newbie on BP. I live in CA where I think it’s just tooooooo expensive to invest right now. I would like to know what cities you think have low prices and high rent so I can get the best return. Any insights or suggestions to websites that have this info? Thank you!!

 It’s important not to get caught in the newbie trap of thinking that, because a market is cheaper than yours, it’s a bargain.  We’re at the tail end of a very long national bull market for property that has pushed down returns everywhere.  When looking at a market outside your own, you need to compare it to its own historical returns, not the returns in your expensive area.  If not you could be in for a nasty surprise when the inevitable correction hits, and when it hits, it will hit these “bargain” markets the hardest.  They are cheaper for a reason.