3 EASY WAYS TO KNOW IF YOU'RE IN THE RIGHT MARKET/VALUE

[Wale Lawal]

In real estate, understanding the market can be tricky and overwhelming, especially when you are searching for a home to settle in or looking for the right investment property to make passive income. Today I will share three easy ways to know if you are buying in the right market.

1. THE BIGGER PICTURE:

People are the ones who determine the market. Real estate prices rise over time due to population growth, jobs, and income. Today we are seeing many people and companies from California moving into Texas. This is due to Texas having lower house costs and lower tax rates. In Addition, if you look at the major metropolitan areas, you will see that The Woodlands and Sugar Land placed at number 5 as the fastest-growing cities. Its growth results in a positive net migration pattern in these areas, where more people are coming in than out.

Job growth is a leading factor in the growth of a city. Next time, pay attention to the direction people are driving to work in the morning, and you'll see the level of interest for that area.

2. SURROUNDING AREAS:

After looking at the net migration pattern from state to state, you will want to focus on the cities within that state. Look at the crime rates, as it may determine the type of tenets or buyers you may attract. Schools are another way to help narrow down a targeted area. The better the school, the more likely you could fill its vacancy with no hassle. Niche.com is a great resource.

Lastly is the cost of living. If you are in an area where the cost of living is above average, you will probably struggle when finding tenants. Keep in mind the average household income in your city.

3. THE NEIGHBORHOOD:

Once you found a state with a positive migration rate, in a city with decent schools and low crime rates. It is time to look at the neighborhood in which you are trying to invest. So understanding what homes will sell and rent for is key. Comparable helps buyers make an informative decision on their potential property or investment. It is a system used by realtors to compare similar homes in the area to value the property. If you don't have a realtor, you can use rentometer.com as a guide.

I hoped this helped anyone find the right market to invest in.

If you have any further questions, don't hesitate to connect with me here on BP. I'd be happy to do anything I can to help you on your journey.

Goodluck.