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Posted over 14 years ago

Best Real Estate Investment Locations

 Where are the best real estate investment locations? If you have enough experience investing in real estate, you can make money almost anywhere, but there are always places that are better or worse for real estate investments. For maximum profits, you want places that have a better demand/supply ratio. Below are a few of the questions you can use to help find them.
 
 Real Estate Demand
 
 1. Does the area have decent job growth? Ask local authorities and use census information. Ideally, you want to see job growth equal to or exceeding population growth. You also want areas with professional jobs moving in. It is estimated that for every professional job created, there are four service jobs created, and all those employees need a place to live.
 
 2. Is the population growing? You can check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.
 
 3. Is there a decent quality of life? It's subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It's also a good indication of a high quality-of-life and if people are willing to take lower-paying jobs just to live there.
 
 4. Is there wealth in the area? It's a good sign when there is some degree of wealth in an area. Look for nice homes. Wealth means everything doesn't die when the economy slows.
 
 Real Estate Supply
 
 1. Number of homes for sale? The lower the supply of homes for sale means more upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.
 
 2. New construction? Census figures can tell you what's happened over the last ten years. Check with the local authorities to see if the the number of housing units they've issued permits for is more or less than the expected population growth.
 
 3. Rent and vacancy levels? Rents need to be high enough, and vacancies low enough to justify investing. If every building has vacancies, or you can rent an apartment for $250 per month, it's a great place for renters, but not so great for landlords.
 
 4. Amount of available land that is buildable? Of course, less available land is better for future appreciation. When the land runs out, the prices start accelerating upwards.
 
 When you use these questions to compare various areas of the city, or a town you'll be able to see the difference more clearly. You'll have an idea about how housing demand compares to the supply in each area. I hope this will help you pinpoint the best area for your real estate investment.
 
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