Real Estate Investment Markets
The most critical aspect of real estate investment is the choice of choice of the right market or neighborhood to invest in. For this, you need to look at a variety of factors like cap rate potential, list price, median income, population growth, unemployment rate, rental units ratio, property crime, violent crime, etc. The most critical factors in considering real estate investment markets are:
Population growth
People move where there are jobs. This is the best indicator for the health and resiliency of a market. You want to invest in areas where the historic and future population growth numbers are positive and trending up and to the right.
Cash flow potential
Investing for cash flow is a safe way to grow long term wealth. Cash flow positive properties makes ownership easy and immune to market cycles. So, you want look for markets that have the best cash flow potential.
Diverse economy
No one trick ponies. Markets with a diverse economy tend to be more stable with respect to rent generation. For example, a market with jobs in multiple sectors like manufacturing, technology, banking, retail, and health care is a very attractive market from an investing perspective provided the market also has a healthy population growth and offers properties with positive cash flow potential.
See also[edit]
References[edit]
This article "Real Estate Investment Markets" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Real Estate Investment Markets. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.
