For every person wanting to get into the real estate game for the first time, there is a myriad of information to take on board. And anyone who has got an acquaintance who has been through the ringer when it comes to buying a home and are getting started in property investments, they know that it is a lot of information to take on board at any one time. But also the one thing that makes or breaks a great property investment deal is the location.
Location is everything, and when it comes to knowing what location is best, there are factors that crop up time and time again. But it’s not just these consistent factors, which we will go into, but what areas are currently very hot when it comes to the real estate market? In the USA we’ve got a multitude of places to choose from if you are wide open when it comes to picking the right state and location.
So let’s address the key things that you need to be looking for to get ahead of the game. But also where are the best markets in the US to build wealth and to make a generous return on your real estate investment?
THE RULES OF REAL ESTATE
The first thing to state is that if you want to make money in this market, you need to know the market inside and out. This means you need to do your research and know your desired location, as well as its history and its future, you need to know everything. And while it can seem like an intimidating proces,s here are the basics you need to know to make sure you do your homework correctly.
Getting Preapproved For A Mortgage
On the surface, it may look like it is irrelevant when it comes to doing your homework and getting ahead of the game in real estate. But you can get a lot of benefits by being pre-approved for a mortgage.
If you are preapproved for a mortgage, most lenders will nail down an interest rate for you so you will enjoy the benefits of low-interest rates if these interest rates are due to rise while in the process of hunting for your dream home. Also from the perspective of the seller, you are a preferred buyer because you are pre-approved, meaning you are a less of a liability. And you have already shown that you have the veritable financial backing needed so estate agents will chomp at the bit to get your custom.
Look At Local Pricing
Based on your desired area you need to see if that location is consistent when it comes to the prices of homes. If you find that the cost of homes is accelerating at an exponential rate in one area in comparison to another, this will show you where there is more demand.
Also, if you research the average price in comparison to the neighboring towns around the area and study these over a period of time, you will get a better idea of prices that are reasonable for specific properties and which ones are considerably overpriced. The best resources for this type of information are through realtors and real estate agents as they have access to the MLS, known as the Multiple Listing Service.
The School Rankings
One of the jewels in the crown of real estate is how the schools rank in a specific state. Quality education is a big thing for investors. Schools are ranked, for the most part, by how the students perform in Math and English. You should look for schools that are top of the list, or schools that are moving up this list. You can find out this information by looking at your state board of education site.
Look For The Up-And-Coming Areas
There is one way to spot if an area is up and coming, if you can see new infrastructure such as schools or new roads being built. As well as these you may also notice things like new shopping centers and amenities that are generally very attractive to home buyers. But before this, apart from being eagle-eyed when you’re driving round in the car, you could also keep your eye out for signs of surveying, the beginning of construction near major roads, as well as land clearing. Also, look for any signifiers that show that an area is preparing for more traffic.
Keep Your Eye On The Peripheries
The outskirts of any major city are always something to be eagle-eyed about. You can always check with local bus companies to see if they are going to expand the service in a specific area as well as check the local planning department in your town hall. But an area on the outskirts of any major city is always something to keep your eye on.
Look At The Property Taxes
If you examine two towns next to each other and see that one town has high property taxes or is rising at a steady rate, and another that has low property taxes, it will be the lower of the two that is in more demand. You can find out this information by calling a local tax assessor, or you can get this information from real estate agents. The important thing to bear in mind is to see if a reassessment is due to take place at any time in the future, because this may be a chance that the taxes are about to go up. You need to be aware of communities that are overcrowded and have overcrowded schools as well as sub-par roads because this means impending improvements means that tax money will be used so the rates are likely to go up.
THE BEST PLACES TO INVEST RIGHT NOW
So here are the current places where the market is growing which encompass jobs, the population, as well as the home costs.
Generally, as a rule, California seldom means valuable real estate because of places like Los Angeles and San Francisco. But as California hosts a wide range of ranches as well as vineyards, crop land, as well as various sources of agriculture, as a pristine area for real estate this takes some beating. You can find more details and photos here of the various ranches as well as some information about the state itself. But if you are looking for an inner city approach to real estate, Sacramento, as well as San Diego are both cities that have had growth in the job market.
Although the housing prices have increased by 6% and only had 2.7% population growth last year, this is the only city in the north east that is currently valuable real estate because of its healthcare industry. As there is little room to build the prices will be due to increase, so to take advantage of the relatively low costs for the area you need to strike while the iron is hot.
The average home price is $243k while the national average is $268k, and the house prices increased by 7% in 2016. The warm climate makes it a great choice on a personal level too!
Grand Rapids, Michigan
This is one of the places for bargains in America as houses in Grand Rapids sell for $166k, a whole $102k less than the national average. It is one of the most undervalued housing markets in the whole of the USA, and as there is rich local history and income, it’s one of the overall jewels in the real estate crown.
The most undervalued of all, Dallas prices are expected to grow the most and the forecast of 6.2% population growth over the next three years. There was a 3.9% increase in jobs in 2016 as well as an increase by 9% in the cost of homes, this is one of the, if not the most, lucrative real estate markets in America.
West Palm Beach, Florida
The sunshine state is always a choice retirement location for people, but with could there be a big rise in house prices homes on not being over valued as yet. But if you want to compare it to Orlando or Jacksonville, you may want to hedge your bets with these due to a higher population growth.
Real estate has always been one of the best ways to accrue wealth, but no doubt you want to try your best to get onto the property ladder. But remember that location is a vital part of the equation, and while real estate is a dangerous game overall (as no doubt you have heard). And you may know someone who lost big in the real estate crashes, if you can do your homework before anything else, this will be the best way to make the most of your investments. But always remember, location is everything when it comes to finding somewhere for you to get a profitable return on your investment. And in America, there are ample choices for you, so make the most of it.