Posted in Blog  
  on Dec 03, 2014

3 Ways to Find the Best Locations for Your New Property Purchases

You have a property or two under your belt, but they may be either a home you formerly lived in or a one-off investment. Now you’re ready to look at new investment properties by researching the best locations for your next purchase. Property managers have plenty of tools at their disposal to help them determine the hottest markets for income properties. There are three key trends to consider when you’re trying to predict which markets will be the most lucrative in the short, medium, and long term.

 

1. Pay attention to redevelopment programs

Some areas of your city may look like they will never recover from blight, but keep an open mind. Many city officials, developers, etc. seek to develop the most undesirable neighborhoods through a variety of initiatives. In many cases, these efforts result in improved housing prices in areas that would previously have made for a bad investment.

Timing is key. You should try to purchase in these areas while revitalization programs are kicking off and appear successful, but before other investors realize the neighborhood will be a real estate hot spot in about five years. Another advantage of redevelopment programs is the fact that they often result in lower costs when purchasing a property, as there are sometimes local subsidies offered to people willing to invest in areas that are being rebuilt. Talk to your local chamber of commerce to determine whether programs like this exist in your area.

 

2. Watch where businesses are building

Before you select the location of your next investment property, take the time to track the areas where businesses are setting up shop. This allows you to purchase your property in a commuter-friendly area. Businesses may be cropping up because of the aforementioned redevelopment programs, or they may be taking advantage of a buyers' real estate market. Either way, new businesses can be a tip off that a neighborhood is growing and will be appealing to a tenant. If businesses have branches elsewhere in the country, it’s also likely that they are relocating employees from other regions. This helps drive the demand for rental housing, since recently-relocated professionals may want to rent before purchasing a house in the area.

 

3. Keep track of school district rankings

School district rankings are long-term metrics to track. Choosing a property within range of an excellent school districts helps you attract parents for whom well-ranked schools are an important variable in choosing a home. Consider seeking out school districts that are making major improvements to schools. This allows you to purchase a property before the real estate costs reflect the proximity to desirable schools. When you purchase an investment property in a good school district, you’re getting an investment property that is geared for long-term success, since parents will always want their children to attend the best schools.

Purchasing lucrative investment properties is part luck and part skill. As you gain experience in property management, you’ll find that the skill portion of the equation helps you develop long-term strategies for taking advantage of rental and property trends. By conducting a little research and keeping an eye on the happenings of an area, you can locate the next real estate hot spot before it gets going.

 


Related

The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More


How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More


The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More


5 Landlord Forms that Every Landlord Should Have

When it comes to being a landlord, one should know that it is not for the unprepared individual. This should be clear that being a landlord does not simply mean that you will be taking the rent and... More


Landlord Obligations: The Responsibilities of a Landlord

Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More


The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More


The Best Landlord Forums

Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More


The Biggest Landlord Problems and How to Fix Them

Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More


Landlord Tenant Disputes

If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More


Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More