Where To Invest In Real Estate

 Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio. Use the questions below to find them.

Demand Questions

1. Is the population growing fast? Check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.

2. Is job growth decent? Again, ask local authorities or use the census information. You want to see job growth equal to or exceeding population growth. The people have to have money to pay for housing.

3. Decent quality of life? This is 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 if people are willing to take lower-paying jobs just to live there.

4. Wealth in the area? It is always a good sign when there is some degree of wealth in a town. Count rich homes. Wealth means everything doesn't die when the economy slows.

Supply Questions

1. How much new construction? The census figures can tell you what's happened over the last ten years. Then 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.

2. How many homes for sale? A lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.

3. Rent and vacancy levels? Are rents high enough to justify investing? Are vacancies low? When we first came to Tucson, every building had vacancies, and we saw a man holding a sign that read, "Apartment - $250 Per Month." Great place for renters, but not a great place to invest in real estate.

4. Available land that is buildable? Less is better for future appreciation. When the land runs out, the prices start accelerating upwards.

Use these questions to compare various towns and cities, and you'll see the differences more clearly. You'll see how housing demand compares to supply in each. Finally, you'll see where it is better to invest in real estate.

About the Author

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

 Steve Gillman

More Articles 

Flat Fee MLS Listings - Is this the future of real estate - Richard Massey
Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market. It use to be...

Weak Dollar Is a Huge Draw for Foreign Investors in US Real Estate - By Jeff Garrison
The weak US dollar has been good news for real estate. Taking advantage of the favorable conversion rates, foreign investors are eagerly picking up real estate in major cities across the US. Who is buying and where are they investing? WHO IS...

Summerland-Carpinteria Real Estate from 2000 to 2005 for the first 10 months of each year - Gary Woods
Summerland-Carpinteria Real Estate from 2000 to 2005 for the first 10 months of each year There's been a lot written and said about how the numbers for Summerland-Carpinteria Real Estate sales are off when you compare them to 2004. Since...

The Quantity Surveyor & Real Estate Development - Colm Dillon
Those of you who are new to the real estate development business, need to understand what each Design professional contributes to the development team and the specific services they are capable of delivering for you. Knowing what they do for you...

Carpinteria Real Estate for '05 through October - Gary Woods
Car pinteria Real Estate has a lot of diversity. It ranges from the very expensive properties on the beach at Sandyland Cove and Padaro Lane to the older residential stock just inland of the beach. Then the row of Condos along Carpinteria...

How to be a successful Real Estate Agent - Rob Scribner
My name is Rob Scribner. I am not a real estate agent, nor am I a mortgage broker. I am the owner of Northwest Custom Webs ( <http://www.nwcustomwebs.com> ) . I have built and maintained over 180 web sites for real estate and...

How to Eliminate Risk in Real Estate Investment - Neda Dabestani Ryba
How to Eliminate Risk in Real Estate Investment By Neda Dabestani-Ryba Prudential Carruthers REALTORS Avoid 12 Common Mistakes Made by Novice Investors and Ensure High Rates of Return! Real estate investment has provided many investors with...

Wealth in Real Estate Foreclosures - kigo kare
There exists a simple little formula that builds massive wealth through real estate foreclosures. If you're interested in firing your boss, working when you want to, and staking your claim in the billion dollar real estate industry, then read on. ...

How to Convert Your Real Estate Notes into Quick Cash - David Springer
If you're a real estate investor needing quick cash, selling your notes could offer a fast, easy solution. It can happen to anyone. You find yourself in a situation where you need a chunk of cash--instantly. Maybe you have to handle...

Montecito Real Estate for '05 through October - Gary Woods
Looking at Montecito Real Estate from where we are in this first week of November 2005 compared to where we were at the same time in 2004 we see some interesting numbers. The number of total Active Listings, those on the market right now is...

Real Estate Investing Spy Secrets - Derek Pierce
I bet your wasting a lot of time and money on your real estate advertising that could be better utilized. What if I told you of a way to know exactly how to spy to see what you're competitors are doing so you can outshine them every day of the...

Finding A Capable Agent To Meet Your Real Estate Needs - W Troy Swezey
Whether you’re a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real estate agent can alleviate many of your concerns and ensure a smooth transaction. A...